Best Binary Options Formula
What Is The Best Binary Options Formula?
One of the things that many people look for whether it’s real life, gambling in a casino, or even trading on the stock market, is some kind of system or pattern. It’s easy to see why; patterns, if they can be understood, can be predicted, repeated and even controlled to some degree. So if there’s a system for how a roulette wheel works, a horse race, or the daily ups and downs of the NASDAQ, then anyone that can exploit that system would make consistent, significant profit.
So it should be no surprise that even in the relatively young system known as binary options trading, there is always a quest to find a “winning formula” that will predict good binary options trades and allow traders to start making some real income. It’s even more urgent for some because of the proliferation of trading software, otherwise known as “binary option trading robots,” that can actually monitor the market and make trades or trading recommendations based on incoming market data.
So this begs the big question, does it actually exist? Is there a binary options formula that can be used to make profitable trades.
The simple answer is “yes,” but the practical answer is “only under certain conditions.” We’ll start looking into that now.
No Algorithm Is 100% Effective
The important thing to understand is that the software that monitors and advises traders, such as trading robots or binary options signals services, do rely on mathematical formulae in order to operate. These formulae are known as “algorithms,” and they are extremely complex mathematical formulae that are discovered through many years of trial and error, data analysis, and real world testing, and despite that, they are still not 100% foolproof. The reason for this is the market itself.
The more variables that you introduce into any experiment or environment, the more unpredictable it becomes. If you are testing the quality of water and you are drawing from only one source, your results are consistent and reliable. This allows you to make more adjustments and assumptions. But if you start testing water from many different water sources around the world, the different chemical and environmental factors introduce many more factors to take into account. The same is true for the world market.
If we lived in a world where only British stocks and commodities existed, and they were only traded within Britain itself, this would be a far easier market to predict and speculate on. But the British market exists within the world market, and it interacts with different stocks and currencies from Japan, the European Union and the United States. This means that any number of factors, including unpredictable weather events in Asia, or political strife in Europe, can have an effect on the British market, and an algorithm simply cannot account for each and every potential event.
Beware Of Scams
This is why if any trading software, robot or other math-based offer of predictive trading makes guarantees of 100% profit, with no losses, it is likely a scam that is looking to part you from your money. There is no such thing as a foolproof system. When you see offers of trading software making impressive claims like this, the first thing you should do is make a broad Internet search to see what other people are saying about this software.
If you see a lot of talk on your favorite binary options trading forum from posters you are familiar with and trust, and they are reporting good results, this is definitely a point in the favor of the software and its formula. If, however, you and your trading peers can find no concrete information anywhere about the performance of this software and reliable customer satisfaction with it, exercise caution. If it sounds too good to be true, it most likely is.
Probability Is Better Than Profit
A more realistic way to promote trading software and its algorithmic success is to openly discuss its failure and success rate. Software is about the probability—not guarantee—of a successful outcome. Good formulae, created by responsible developers are capable of recognizing patterns and movement in the marketplace, then make comparisons of those patterns with what has happened in the past, attempting to draw similarities and parallel results.
This simply means that if a particular market movement has occurred in the past, in similar circumstances, then a similar outcome is much more likely, but still not necessarily guaranteed. A good formula will give you the odds, but it is still up to you to decide whether those odds are good enough for you to act on. Good trading algorithms and software will start, on average, at about a 70% success rate, and get better from there. Beware of very high advertised rates of success. Any formula that claims 95-100% success is unlikely to actually work as claimed.
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