The Binary Signals Review
It has been a while since I have run any live forward tests on the website. Perhaps too long. The last time I looked around the market for good Binary signals it seemed that there were a rapidly increasing number of services coming onto the market.
The reason for the growth in signals is somewhat obvious. It is a big money spinner and let’s be honest, binary options are fairly easy to come up with strategies for.
The secret to making money is of course finding a strategy that can offer a sustainable win rate. This is not always easy to do.
Anyone who has done their research into binary options will no doubt know that around the 55% mark tends to be the break-even point. Therefore you are going to need to hit a strike rate in excess of this to make money and cover any associated subscription costs.
It is against this backdrop that I am taking a look a the ‘The Binary Signals’. This is a newly launched alert service for binary options traders that quotes a 72% strike rate.
The service follows a familiar format to the Up Down Binary Signals service. Alerts are sent on a variety of different assets and at different times throughout the day. Although potentially a subscriber may receive an alert on almost any asset, in practice it looks like most are served up on currency pairs.
Delivery of the alerts is provided by both SMS and email to the contact details that you enter on the sign-up form.
Of note the website is clean and well laid out compared to many of its peers. All trade results are easily accessible for potential traders to view and even those who have not used binary options trading signals before should be able to grasp what is going on.
Historical Binary Signals Performance
The results of the last ten signals are highlighted on the homepage of the website. At the time of writing the review, 2 signals had been sent for the day (10th) while 8 signals had been sent the previous day (9th).
Of these 10 signals, eight were shown as ‘winning’ while two had ‘lost’.
This only gives a snapshot of performance. However the service provides a full list of historical results which can be viewed on the website.
Historical results go back as far as mid February and provide a better indication of how many signals will be received. March for example, saw a total of 20 signals sent over the month.
It is from these results that the quoted 72% strike rate is derived. This is perhaps a little lower than some of the signal providers I have reviewed in the past.
What is very clear however from my testing experience with previous alerts services, is that being able to reliably ‘get in’ on the signals, is more important than the quoted performance from the provider.
In short you you need to test the signals for yourself and not rely upon any favourable performance figures provided on the website.
There is no surprise in terms of the pricing for the signals which comes in at $97 per month. This makes this service pretty standard in terms of cost when compared to other similar alert services on the market.
However… and to my mind this is a big negative… you can’t try the signals out like with other services. There is no one week trial offered as many other providers do.
While you can get the signals for a reduced rate (advertised for $9.99) you have to sign up with one of the brokers on the site to quality.
Personally I’m not a fan of this approach. Firstly you are going to end up getting steered into opening an account with a broker that you probably wouldn’t have entertained in the first place.
Secondly your $9.99 signals have now cost you $209 once you taken the minimum broker deposit requirements into account.
I intend to start placing and recording signals for this service from Monday April 15th and run the signals for one full month to see how they perform.
Anyone who has previously followed any of the live testing run on this site will be aware of the format.
All signals are placed in a live trading account when received. The actual results I get from trading the signals are then updated the following day. This helps to provide a ‘real world’ perspective on what can be achieved from following the alerts. It also provides a good way to measure the potential for building profits when using the service.
|Live Trading Record|
|15/04/13||* See update below|
|16/04/13||* See update below|
A quick update on the service so far and a couple of points to mention.
Firstly the first two days of the service saw no trading - I’m not quite sure what the error was but an email to support seemed to get things up and running. I think there was a slight problem their end with delivery as everything was set-up OK my end (email, SMS number etc). Not an ideal start but a good test for their support which I must say was thorough and quick to respond.
As for the signals themselves it is encouraging at this stage. At lot are very short term however and you will need a broker offering quarter hour expiry times.
My main criticism so far is the timing of some of the signals. They are sent GMT but to be honest, sending me a signal at 02:00 GMT is really not great for me…I’m asleep at that time! So far three signals have fallen into this ‘out of hours’ category. Now of course it will depend as to where in the world you are trading from as to which signals you may miss, given that they are not sent at a set time.
So far so good and watch out for my next update as the live Binary Signals testing progresses…
(** Bizarrely I woke up in the morning to find 8 trade alerts on my mobile which had been sent overnight! I’m not quite sure what happened there but needless to say I wasn’t able to place them… :-/ Also three trades were placed on a Sunday lunchtime on Tadawul and the Tel Aviv 25. Again these weren’t placed).
The Binary Signals Review - Final Update
Having tested this binary options signal service out for three weeks and due to the fact that I am unable to place the signals next week, I am drawing my live forwarding testing to a close.
Overall the performance for the service over the three weeks stands as follows -
- 33 wins
- 25 Lost
- 29 couldn’t place (including 8 sent overnight and three on a Sunday)
Looking at the numbers above I think the figures start to speak for themselves, with nearly 100 trades sent in a three week period! For those people that like to ‘get involved’ with their trading then this is clearly going to satisfy their urges.
However far from achieving the high published strike rate, the actual performance was less than spectacular. However this in part could be down to the alerts that I was unable to take - most commonly because I was unable to get in at the suggested price given in the signal.
For me the high volume of trades simply meant a lot of work for little in terms of results. However I would suggest that you may benefit from trying the service yourself. If you have better luck at getting in on the positions that I missed, the sheer volume of opportunities could provide you with profits.
Binary Signals Review Verdict
- Clearly laid out website - you know what you are getting
- Good performance - 72% strike rate
- No introductory trial period
- Alerts aren’t sent at a set time each day