I have received a few request to take a look at Binary Options Trading Signals, which provides exactly what the name suggests. This is another of the many providers serving up signals for binary traders and to the best of my knowledge, one of the more popular.
While having previously been put off due to what I consider to be high pricing for such a service, my attention was drawn to a recent good run of results provided by a colleague of mine from following the suggested trades.
How The Service Works
While most trading signal services use thetried and tested method of delivering signals by the use of some form of contract method (email, SMS, Skype) the attraction of this service is that it provides something a little different.
Rather than providing ‘passive’ signals, the service makes use of a live web session which you log in into with the details provided at signup. This allows you to ‘watch over the shoulder’ of a pro trader and comes a lot closer to true ‘mentoring’ than many of the other services currently on the market.
From this web based window you are connected directly to the trading screen of ‘Franco’, the trader behind this service. You can watch him trade as he finds opportunities and instructs you via the chat facility.
The idea is that you follow the trading signals that he places directly by simply emulating them in your own account.
The trading window runs from 09:30-11-30 AM EST (Eastern Time) so it is important that you are around at these times to watch for any opportunities which are signaled.
Contracts tend to be placed primarily on the Forex markets, in particular the EUR/USD pair. Two principal contracts are used, the 60 second and 15 minute.
Franco himself trades with this broker but any broker offering access to these contracts will be good to use. It also seemed when in the trading room that as well as 24Option, many of the other traders were making use of the sixty second contracts offered by Traderush.
After signing up and logging in you will be greeted by a series of motivational videos to confirm that you are connected. A chat window is provided at the bottom of the screen where you can directly communicate with Franco and other traders following the system. A Skype address is also provided to aid communication with other members of the trading group. If you are new to this then you can request a link to provide you with further details of how the service works.
The Strategy
If you have used any of the other signal services review on this site then this is something of a departure when you get into it. Firstly, as already mentioned, you need to be able to set aside the two hours each day to log in and trade. The second thing to note is that in order to trade you need to concentrate on the instructions give. This is particularly important due to the short time-frames involved. The third important point to note is that the trading style uses ‘martingale’ to recover losses. This is always a contentious issue but it does seem to work well with the Four candle trading system which is used.
A lot of interaction takes place in the trading room and some interesting advice and information is given about the markets from Franco himself. You will get your questions answered easily and it turns out that this is a good place to get advice in general on trading with binary options.
Performance
The central objective of the service is listed as aiming ‘to win the week’. From this I understand that each trading week is taken as a separate benchmark. This will obviously have some influence as to any positions that are taken in the later part of the week, as you would expect the vendor to want to preserve any early profits that are made.
With this in mind the service aims to provide on average, three to five signals per day during the specified trading window. The actual performance achieved is hard to discern from the website and in truth, it will depend on how you trade the suggested signals. As the money management system used is based on martingale then you can still lose a number of positions and end up making a profit.
Pricing
Unlike most of the signal providers I have looked at previously, there is no opportunity to try this one out before signing up. So unfortunately it is simply a case of handing over your money and hoping that it will both fit in with your requirements and importantly, deliver some profits.
The pricing is quite high when compared to some services – $99 for two weeks. However this should be considered in the context of what you are getting for your money. Two hours of live trading each day and mentoring each day and the chance to earn some high profits actually make it look quite cheap in this respect There is a good element of education provided here which you don’t get from simple email signals.
Testing
The service is somewhat hard to provide concrete test results for due to the way in which the strategy works. Therefore rather than listing each position taken over a single subscription cycle (two weeks), I will instead post the number of winning and losing trades that I made each session and the percentage of profit or loss made on my total account balance. Once the testing period has been completed the review will be updated with further thoughts on this service.
* I should note that trades are being placed at 5% of account balance which is reflected in the results shown below. So the total return is given as a percentage of the return made on total starting capital. Fixed trades are used at $100 per contract.
Pros
- Real ‘hands on live signals’ where you can also learn trading techniques
- The opportunity to make very high profits over a short period of time
- Great support network in the chat session (Q and A’s)
Cons
- You need to actively trade the signals yourself and manage your own risk
- Time commitment – You will need to log in to each session for up to two hours per day
Trading Record Week 1
Monday 5th November – 7 wins / 3 losses Return +16%
Tues 6th November – 7 wins / 0 losses/ 2 break-even Return +30%
Wednesday 7th November – 3 wins/ 0 losses Return +10.5% (only traded the first 45 mins due to appointment)
Thursday 8th November – 3 wins/ 1 loss Return +10%
Friday 9th November – 4 wins/ 2 losses Return +12.5%
Total for week (trading fixed contract sizes of 5% of account) – Return +79%
Week 1 Update
So an update on the ‘Binary Options Trading Signals’ service which I have been live testing after the first week. I’ve received a number of comments and emails about this service which I will try to answer to clarify how this works.
As mentioned in the main review, this is somewhat different from many of the signals services on the market in that you are not actually just sent a signal. Instead trading takes place via on an online trading session which lasts for two hours each day. During the session members can interact with both each other and Franco.
Displayed on the screen are Franco’s charts on which he runs his proprietary trading algorithm. When a signal is generated members are alerted and can place the trade in their own accounts. Trading opportunities are signaled as both ’60 second’ (1 opportunity) or long term (generally a fifteen minutes). For the ‘long term’ trades it is up to the member how many 60 second trades they place within the signal. This leads to widely different results between the traders as ultimately it comes down the individual as to how much risk they want to take. I have taken a very conservative approach but some of the traders seem to be ‘killing it’ to coin a phrase used by Franco himself. It is not uncommon to see some of the more experienced traders in the room positing anywhere from 5-0, 12-0 wins in one session!
The methodology used is known as the ‘Four Candle’ system. It also uses Martingale money management So if you lose on the first 60 second trade you then double your trade size for the next. If you lose on the second you double again and so on until the forth candle.
While I generally don’t like this approach and appreciate it may not be for everyone, you have to look at the results and draw your own conclusions. Also in the mix are a few longer term hourly and end of day trade signals. So far signals have been given for various Forex pairs, oil, gold, silver, Google and Apple to name a few. So a good mix of assets.
After the first week, trading conservatively with 5% of my capital I was able to produce some very good results. And I must saying I am thoroughly looking forward to joining the guys online again next week, to both learn and hopefully profit some more.
As a note where the results show a ‘loss’ and a profit is shown, this is where a second ‘double’ trade was used. So for example, on Monday the actual results had were a a win, win, a loss and a win (using double stake). I have seen some third candle trades being taken and it seems
Trading Record Week 2
Monday 12th November – 3 wins/ 1 loss Return 10%
Tuesday 13th November – 4 wins/ 0 losses Return 15%
I took the liberty of recording the first ten sets of results posted by traders of the service at the end of the session to provide an example of the spread of returns being made by users of the service (wins versus losses – 16-0, 9-3, 4-1, 3-0, 2-2, 5-1, 7-0, 8-1, 3-1, 2-1)
Wednesday 14th November – 5 wins/ 0 losses Return 18%
Thursday 15th November – 7 wins/ 1 loss Return 25%
Friday 16th November - 5 wins/ 0 losses Return 18%
Total for week (trading fixed contract sizes of 5% of account) - Return +86%
Summary
So the two weeks of testing are up and it is time for me to summarize my feelings on the service.
The first thing to reiterate is that this is not a ‘conventional’ signal service in the vein of say Binary Options Pro Signals. You don’t receive ‘blind’ trade recommendations to simply follow in your account. Yes, you will be given signals, but you have to commit to the trading session each day and there is an element of ‘trading’ involved. While you are alerted to potential opportunities, how you interpret them and the number of ‘trades’ you make will be down to you. Therefore it is difficult to draw a direct comparison between these two different styles of service.
YOU have to enter the signals when given, YOU will have to decide if you want to place single or multiple positions and YOU will have to be prepared to manage your risk. As mentioned this means following a Martingale approach of doubling up your trade contract values following a loss. Possibly even three times. Consequently you will need a strong stomach. (As a note I only ever encountered one ‘third’ candle trade (doubling up twice) and a couple of second candle trades (doubling up one). Of course you don’t have to follow this approach. You can use fixed stakes on each position but your gains will be slower.
This all means that you have to watch, learn and listen to what is being said. The point I am trying to make is that not all people can or are prepared to do this. If you can’t do these things don’t bother using this service – you will quickly end up blowing your account.
However if you can follow the instructions provided you can make very good money. Take the first week to just sit back and absorb what is happening and demo trade. There is nothing so technical on offer that means new traders to binary options cannot profit from using this service. Everything is explained and if you don’t understand then you can ask. Franco is on hand throughout the trading session and will answer questions and provide some enlightening insight on how to trade in between signals. Franco’s is someone who seems to have a good understanding of the markets and an enthusiasm that is nothing short of infectious.
There is really little more I can say. If you like the sound of it, sign up and give it a go. The fact that I have signed up for an additional two weeks to trade one of my personal accounts should give you some indication of my views on this service. And you won’t get a much better endorsement than that…
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