I was at once pleasantly surprised, a little shocked and curious when I stumbled upon a binary options strategy on the SeekingAlpha website. SeekingAlpha is a large and respectable blog spot for investment and trading in the stock, options, commodities and currency markets. The mere fact that the article was hosted on such a site adds a little presitge if not reliability to the strategy. SeekingAlpha is not a place I would expect to fing affiliate marketing shenanigans.One thing that stood out as a possible warning flag was the claims of “Zero Risk” and guaranteed returns. This is not an automatic tumbs-down for the strategy but does raise concern. Undoubtedly there are many strategies that can guarantee returns, I know my own trading keeps my in the green. The claims of zero risk are more troubling. All strategies and trading systems come with risk. It is the reduction and control of that risk that marks a great trader from a good one.
The author immediately tried to allay my fears once I began to dig into the strategy. It is an aggressive strategy, meant to double an account every ten days, but does so using small incremental gains. This impressive feat is accomplished with a small 10% gain each day which leads me to believe there is an element of risk control in the strategy. The strategy is based on four basic questions; Up or down? What is the trend? Are there chances of a trend reversal? And finally, what is the expiry? The strategy itself does not rely on any of “that technical crap” in the authors own words, so should be pretty easy to employ. The thing is, after reading down for about two pages there just isn’t much mention of what the strategy really is, just endless reasons why you should trust it to work for you.
So What’s Up With The Zero Risk Strategy?
It turns out, to my dismay, to be a wolf in sheeps clothing. This is a gross and shameless attempt at affiliate marketing and not likely in your best interest. In order to participate in the strategy you have to sign up with their broker. The reason being, there is a special feature only available with this broker that allows the system to work. Trust me, this is nothing but malarky. The article is nothing but a broker review and not something I would expect to find on a site like SeekingAlpha. To bad for them Rajat98 has used them for his own devious SEO purposes. Good thing for us I got onto his trail.
The “strategy” is more of an instruction on how to use and trade binary options. In order to find out more about the so-called “Magic Step” you have to go to yet another blog, guess what I found there; A blog devoted to the Zero Risk strategy. Only there was zero informaton on it. It only has two pages. The home page, which is the exact same SEO/review page as the SeekingAlpha article, and a contact page with a ID’less email address linked to the website. Aside from the ads the only other thing that could be of any value is a PayPal link. Value to the website operators that is. This is so you can buy the Zero Risk Strategy, only I am still not sure what the hell it is. I guess Mr. Rajat Kapoor, owner and writer of the blog, thinks we’re all pretty stupid.
What Is The Point
The point is that Mr. Kapoor wants you to sign up with his broker so that he can make some money from your deposits and losses. The more you lose and the more you deposit the more money he will make so I would not put much faith in any strategy he will provide if you do choose to join him. It is not uncommon for an affiliate scam sight like this, even though it is a poor wannabe, to be directly associated with a less than savory broker so I was curious to see what I would find. If there is a connection between the website and the broker it would take the scam to a whole new level. The recommended broker is BentonMarkets, now know as Binary.com. This is a licensed and regulated broker, on the Isle of Mann by the GSC. If you are not familiar with this designation it means that Betonmarkets, Binary.com, is a casino and regulated as such. To them, binary options are games of chance, not financial investments, and are operated differently than typical binary options. At this time there is no indication of any connection between this strategy and the casino other than Mr. Kapoor’s desire to seperate you from some of your money. So at least Binary.com has that going for them.
As far as regulated brokers go, I would stay away from this one. If you are in the EU or UK and want to seriously trade binary there are much, much better choices for you. That being said there are some interesting things on the website. For one, the asset index is quite extensive and includes more indices and commodities than most other brokers. Another is expiry which is unlike what you will find with the run of ordinary brokers. You can pick expiry in seconds, minutes, days or weeks. And then choose the number of each. For example, if you choose seconds your expiry can be as many seconds away as you want with a minimum of 15. This means you can choose just about whatever expiry you want. One negative is that payouts are different as well. All options pay out $100, just like 0-100 options, but are purchased like spot binary. Once you choose your asset, option and expiry the platform will give you prices for bearish and bullish posistions to choose from. Prices will be under $100 and your profit will be the difference.