I think it is a given that most free binary options signal service providers are really an affiliate marketing scheme. There really is no other reason for an SSP to provide free signals unless they want you to buy something, sign up with one of their recommended brokers or harass your friends into joining. Websites providing free binary options strategies are very similar but tend to be less scammy than the SSP’s. I know, I post strategies on several websites including my own. My goal is always to provided real, useful, information for traders. This is not the case with the strategy I will be reviewing here today.
Whenever I am reviewing a strategy I also have to look into who is presenting it. Believe it or not it can make a big difference. This strategy is provided by BinaryStrategy.EU, a website dedicated to binary options strategies and broker reviews. After thoroughly checking into the strategy and website I am more convinced than ever that this is nothing more than an SEO scam set up by someone who doesn’t know much about trading and probably had to use a translator program to get the page in English.
The MACD And Bollinger Band Strategy
I like MACD and use it every day in my trading and analysis. It is one of the best and most reliable indicators I know and when added to another tool such as support/resistance lines or Bollinger Bands as is the case here today can be highly effective for binary options traders. This is the MACD And Bollinger Band Trading Strategy For Binary Options. It is designed for trading 60 Second options and uses MACD, Bollinger Bands, Candlestick Charts and a new indicator I have never heard of, the Mobile Media. It is good for trading in either direction and comes highly recommended by the author, who is not named. Signals are derived from a MACD crossover that occurs at either extreme of the Bollinger Bands. In the given example a bearish candlestick is accompanied by a bearish MACD crossover while prices are at the upper range of the B Bands. In this case a 60 Second Put option is indicated. If the signal were a bullish crossover occurring at or near the lower B Band then a call would be indicated.
Benefits Of Using This Strategy
There are some benefits to using this strategy, but not enough. First, it uses MACD. I like, know and trust MACD for analysis and trading signals. I can recommend it to newbies and experienced alike. It also uses Bollinger Bands. B Bands, and any enveloping indicator, are great tools for traders as well. Other benefits include it’s usefulness as it can be used to trade in either direction and the well defined entry points. The thing is, these are not enough to outweigh the risks involved.
Risks Of Using This Strategy
There are too many risks to using this strategy to name in one article. First and foremost, it is based on 60 Second binary options. These are the riskiest of all binary options types and not one that I would recommend to anyone. Second, it makes no attempt to determine the underlying trend or to weed out whipsaws and false signals. Utilizing trend analysis would help to alleviate false signals and improve the strategies success rate, which I will point out is not listed on the website. False signals are a real problem for this system. The chart provided by the author points out several profitable entries but overlooks a number of false signals that would more than off set the good ones. Adding risk to this strategy is the use of a new indicator, I think, called the Mobile Media. When I looked I could find no mention of this indicator anywhere on the website or elsewhere on the web. In fact, I think it is possible the author is referring to the moving average used to smooth the MACD indicator.
My Conclusions On The MACD And Bollinger Band Strategy For Binary Options
I can find no real value to this strategy. If you use it you will lose your money. It is nothing more than an SEO page aimed at getting you, my trading brothers and sisters, to deposit money with 24Option. The good news is that this web site is indeed a third party affiliate and not operated by 24Options itself. 24Option is a reputable broker. The bad news is that it is an affiliate marketing scheme and this is why. The author recommends you practice in a demo account….a demo account you can only get by making the minimum deposit with 24Option and thereby producing an affiliate bonus for BinaryStrategy.eu. When you go on the site you will see for your self just how little of value there is. What makes it worse is the rampant use of improper vocabulary throughout this strategy and others I scanned while researching this article.