Binary Trading Robot Scam
The number one result if you google the words “Binary Options Software” (after you skip the paid ads) is a product called Binary Trading Robot. I have linked to it here so you can see the site, but PLEASE DO NOT USE THIS SOFTWARE. Its a complete scam, and I have the evidence to prove it. Binary Trading Robot Scam – Exposed
Why is it a scam?
I have exposed the Binary Trading Robot Scam because it is just plain dishonest. Lets look at the evidence:
Firstly it is an AUTOTRADING software which is BAD if you read my other post about them you will understand why. But for those who havent, please allow me to elaborate: Binary Autotrading is a scam set up to convince you to deposit large amounts in a binary account which is then EMPTIED by the person controlling the autotrader. They will lull you into a false sense of security very quickly, and once they have that’s when they stick the knife in. They will convince you to deposit a MASSIVE amount of money, and then they spam your account with useless trades and between them and the broker, they are laughing all the way to the bank.
The other reason is the use of the Martingale System.
The Martingale System
The Martingale System is an old trick used by scammers to con people out of their money using Roulette. Basically you keep betting (or in this case, trading) in the same direction, and each time you lose you double your stake. This is designed to con you into blowing your trading balance. They try to convince you that your losses will be returned when you win, as your increasing stake covers your previous losses when you win. This is however a very effective way of clearing out someone’s account. You might get the odd time when this works, but due to the massively high risk nature of this type of trading, you inevitably lose. And when you lose its normally because you have blown your balance before you hit a winning trade. Let me explain based on losing 6 trades in a row:
Initial Trade – $25 (Which is the minimum with most Binary Brokers.) – $25 Loss
2ndTrade – $50 – $75 Loss
3rd Trade – $100 – $175 Loss
4th Trade – $200 – $375 Loss
5th Trade – $400 – $775 Loss
6th Trade – $800 – $1575 Loss
Thats $1575 lost in just 6 Trades!!! Massively risky and a dumb way to trade.
For more information on the Martingale System and its flaws, here is some information from Wikipedia
A martingale is any of a class of betting strategies that originated from and were popular in 18th century France. The simplest of these strategies was designed for a game in which the gambler wins his stake if a coin comes up heads and loses it if the coin comes up tails. The strategy had the gambler double his bet after every loss, so that the first win would recover all previous losses plus win a profit equal to the original stake. The martingale strategy has been applied to roulette as well, as the probability of hitting either red or black is close to 50%.
Since a gambler with infinite wealth will, almost surely, eventually flip heads, the martingale betting strategy was seen as a sure thing by those who advocated it. Of course, none of the gamblers in fact possessed infinite wealth, and the exponential growth of the bets would eventually bankrupt “unlucky” gamblers who chose to use the martingale. It is therefore a good example of a Taleb distribution – the gambler usually wins a small net reward, thus appearing to have a sound strategy. However, the gambler’s expected value does indeed remain zero (or less than zero) because the small probability that he will suffer a catastrophic loss exactly balances with his expected gain. (In a casino, the expected value is negative, due to the house’s edge.) The likelihood of catastrophic loss may not even be very small. The bet size rises exponentially. This, combined with the fact that strings of consecutive losses actually occur more often than common intuition suggests, can bankrupt a gambler quickly.
Avoid this at all costs. Its just plain scammy and YOU WILL LOSE MONEY. If you want to learn how to trade Binary Options properly, please visit some of my other posts like this one