The Binary
 
Formula
 
 
 
 
 
 
 
 
 
Reproduction or translation of any part of this work by any means, electronic or
mechanical, including photocopying, beyond that permitted by the copyright law,
without permission of the publisher, is unlawful. This e-book cannot be resold.
This e-book is only sold at http://www.TheBinaryFormula.com. If you bought the e-
book from any other place, you have an illegal copy.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
RISK DISCLOSURE STATEMENT

Trading any financial market involves risk. This e-book and the website
www.TheBinaryFormula.com and its contents are neither a solicitation
nor an offer to buy/sell any financial market.
 
The contents of this e-book are for general informational purposes only
(contents also mean the website www.TheBinaryFormula.com and any
email correspondence or newsletters related to the website).
 
Although every attempt has been made to assure accuracy, we do not
give any expressed or implied warranty as to its accuracy. We don not
accept any liability for error or omission. Examples are provided for
illustrative purposes only and should not be construed as investment
advice or strategy.
 
No representation is being made that any account or trader will or is
likely to achieve profits or losses similar to those discussed in this e-
book

Past performance is not indicative of future results.

 
By purchasing the e-book, subscribing to our mailing list or using the
website, you will be deemed to have accepted these terms in full.
 
The author, the website, the e-book, and its representatives do not and
cannot give investment advice or invite customers to engage in
investments through this e-book.
 
We do our best to insure that the website is available 24 hours a day
but we cannot be held liable if for any reason the site is not available.
 
The information provided in this e-book is not intended for distribution
or use by any person or entity in any jurisdiction or country where
such distribution or use would be contrary to law or regulation or
which would subject us to any registration requirement within such
jurisdiction or country.
 
 
 
 
 
Hypothetical performance results have many natural limitations, some
of which are mentioned below. No representation is being made that
any account will or is likely to achieve profits or losses similar to those
shown. In fact, there are frequently sharp differences between
hypothetical performance results and actual results subsequently
achieved by any particular trading program.
 
One of the limitations of hypothetical performance results is that they
are generally prepared with the benefit of hindsight. In addition,
hypothetical trading does not involve financial risk and no
hypothetical trading record can completely account for the impact of
financial risk in actual trading

For example the ability to withstand losses or to adhere to a particular

trading program in spite of the trading losses are material points,
which can also adversely affect trading results.
 
There are numerous other factors related to the market in general or to
the implementation of any specific trading program, which cannot be
fully accounted for in the preparation of hypothetical performance
results. All of which can affect actual trading results.
 
We reserve the right to change these terms and conditions without
notice. You can check for updates to this disclaimer at any time
without notification.
 
The content of www.TheBinaryFormula.com and this e-book are
copyrighted and may not be copied or reproduced.
  
 
TABLE OF CONTENTS
 
 
Preface...............................................................................5
 
 
What are Binary Forex Options....................................... 6
 
 
The Trading Strategy.........................................................7
 
 
The Rules Of Trading........................................................9
 
 
Trading Examples.............................................................10
 
 
Brokers...............................................................................40
 
 
Tips On Trading With Brokers..........................................41
 
 
Money Management..........................................................45
 
 
Final Thoughts...................................................................48
  

 
PREFACE
 
 
This books main aim is to do away with many of the rumors and
misinformation currently being banded about the Internet by various
different sources.

It is the result of months of solid testing and trial and error, this e-book
isn’t going to be a history lesson on trading or the currency markets, or
what specific currency pairs mean, or even how to work out particular
calculations for the value of pips, that information is WIDELY available
on the internet all a simple Google search away

But what you will find in this e-book are the essential things you need
to know to make a Consistent, Daily income, simple as that.

Read the contents of this e-book carefully, take it on board, analyze it

and you will profit

 
  

WHAT ARE BINARY OPTIONS?

 
 
Binary Forex options consist of a fixed purchase price (premium)
and a fixed value (payout), therefore, limiting risk with a defined
reward.
 
In other words, if you're trading a particular currency pair e.g.
GBP/USD and you feel that within 15 minutes the value of the pair
will fall, and you place a $25 trade with the expectation you will
get an 85% return.
 
There are two outcomes:
 
 
1. Within 15 minutes, your prediction could be correct netting
you $21.25....

OR
 
 
2. You could predict wrong and get back a rebate of 15% of
your $25.
 
It all depends on your broker.
 
There are some brokers that give you back NOTHING at all. If
you predict wrong, you lose your entire risk money.
  

The Trading Strategy

 
Ok... here's the meat of the matter.
 
This is where I reveal to you how to make an ALMOST guaranteed
return everyday trading binary options.

First of all, we're going to use Camarilla Levels to find our

support and resistance points for the entire day.
 
Camarilla Levels
 
In 1989, there was a successful UK bond trader by the name of
Nick Stott who was a mathematical trading whiz.
 
Instead of using judgment and discretion to trade, he
eliminated any chance of guesswork by trading scientifically.
 
And he did so by developing a particular equation that quite
simply follows the theory that markets, like most time series, tend
to revert to the mean.
 
In simpler terms, when markets have a very wide spread between
the high and low the day before, they tend to reverse and retreat
towards the previous day's close.
 
This in turn makes it easier to accurately predict what today's
intraday support and resistance will be.

And this is the equation we use to calculate these support

resistance levels:
 
 
 
 
 
 
 
 
 
  

The Camarilla Equation

 
Resistance 4-----R4 = (H-L)X1.1/2+C
Resistance 3-----R3 = (H-L)X1.1/4+C
Resistance 2-----R2 = (H-L)X1.1/6+C
Resistance 1-----R1 = (H-L)X1.1/12+C
 
 
PIVOT POINT = (H+L+C)/3
 
 
Support 1---------S1 = C-(H-L)X1.1/12
Support 2---------S2 = C-(H-L)X1.1/6
Support 3---------S3 = C-(H-L)X1.1/4
Support 4---------S4 = C-(H-L)X1.1/2
 
I literally used to just plug the numbers into this equation and
punch it out on my calculator.
 
But, you don't have to go that long, laborious route to calculate
the levels.
 
  
The  Rule  Of  Trading  
 
How to trade 'UP'
 
The rule is when a bearish (white) candle hits support and closes
on the support, the next candle should be BULLISH (Clear candle),
so you trade for the market to go UP immediately after that close
of that candle. Be careful to note that...

1) The candle MUST close on the support level OR...

2) It must have touched the support level at sometime
and closed as a BEARISH candle
 
However, if it passes through and closes beyond the support
level, it's a NO TRADE.
 
 
How to trade 'DOWN'
 
The rules are exactly opposite for a DOWN trade.
 
When a BULLISH (white) candle hits resistance and closes on the
resistance level, the next candle should be BEARISH (white candle),
so you trade for the market to go DOWN immediately after that
close of that candle.
 
1) The candle MUST close on the resistance level OR...
2) It must have touched the resistance level at sometime and
closed as a BULLISH candle
 
However, if it passes through and closes beyond the resistance
level, it's a NO TRADE.
  

Trading Examples
 
To illustrate exactly how to trade PROFITABLY with these rules,
let's take a look at a numerous examples with different currency
pairs.
 
EXAMPLE 1
 
So, let's take January 11, 2012 and see how you could have made
at least 87% in one day from the USD/CAD currency pair.

Here goes!
 
First of all, at 5 PM or anytime thereafter, you’re going to get the
day's High, Low and Close from the USD/CAD chart.
 
Step 1:

On your MT4 chart, click the button on the toolbar 'D1':

 

 
  

Step 2

Then click on the 'crosshair' tool icon:

 
 

 
Step 3:
 
Once you've done that, slide the cursor across the chart to find
January 10, 2012:
  

Step 4:
 
Now, once you've done that, look at the bottom for the HIGH,
LOW and CLOSE for the day:
 

 
Step 5:
 
Take those figures and plug them into the formula on the
spreadsheet:
 
You will get:
R4 = 1.0214
R3 = 1.019
 
R2 = 1.0182
 
R1 = 1.0174
 
S1 = 1.0159
 
S2 = 1.0151
 
S3 = 1.0143
 
S4 = 1.0119
 
 
Next, what you will do is: Copy these figures from the formula and
plug them into the chart.  
 
Click the 'Horizontal' line button on the toolbar. Then click on the
chart. Do this 8 times to get 8 horizontal lines on the chart.  
 
 
 
 
 
  

 
 
Once you've done that, we're going to set up the support and
resistance levels by giving 'parameters' to these horizontal lines.
 
So, put the USD/CAD chart on a 15-minute time frame.
 
Simply click the 'M15' tool button you see to the left of the 'Draw
horizontal line'.
 
 
Then hold down the 'Ctrl' button and press 'B'. You should get the
following:

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  

 
Then, we are going to set the parameters for each:
 
 

 
 
 
The 'Properties' button will be highlighted. Click on it.

You will see three Tabs: 'Common', 'Parameters' and 'Visualization'

Under 'Common', put R1 for description. Then click the 'Parameters' tab
key.
 
 
For 'Value', copy the value you got for R1 from the formula and paste it
in. Click 'OK'.
 
 
Then you do the same for the second line:
 
 
 
  

 
Click on 'Properties'.... put R2 as the description...then copy the
R2 value from the formula... paste in 'Values' when you click the
'Parameters' tab.... then click 'OK'.

You get the gist of it.

 
 
  

You do this for R3... and R4... then S1... S2... S3... and S4
 
When you are done, your chart should look like this:
 
 
 

 
 
 

Our support and resistance levels are set up. Now, before we get
into how you're going to make your money, let's identify the bullish
and bearish candles.
 
If you're a seasoned trader, you can skip this.
 
 
  

 
But, if you're new, the bearish candles are the white ones.
 
Those signify that price is going down. The other candles, of
course, the clear ones, are bullish. Those signify that price is
going up.
 
Now, here's the good part!
 
Let's say it's 5PM on January 10, 2012 and you've calculated your
figures and set up your lines, you'd have made 87% within half an
hour of doing so!
 
If you had traded $100, you would have $187 within less than an
hour.
 
Here's how:
 
If you look at the chart, after 5PM you’ll see that price is headed for
the first support level 1.01590. It's a BEARISH candle that hits the
support.
  

 
 
 
Now, you could have made 87% between 5.30 and 5.45. If you
traded $100, that would be $187.

But, let's say you want to go more.

 
You wait until price climbs to the first resistance level at 1.0174 by
7PM. But it bursts through the resistance at that level and closes.

That's a NO TRADE. But guess what? Between 7PM and 7.15PM, a

bearish candle forms and uses the previous resistance as
support!
 
 
  

Do you remember the rules of trading?

 
That if a BEARISH CANDLE hits support, what the next candle will
be?
 
A BULLISH candle.
 
What happens between 7.15 and 7.30?

A bullish candle forms!

If you placed another trade, you'd have won another 87%. So, your
$100 would've turned $274 if you traded $100 only!

And if you went to bed, and got up during the small hours of the
early morning, you'd still have trading opportunities.
 
If you woke at 3 AM, you could pull up the chart and make 2 more
winning trades one after the other in half an hour and gone back to
bed.
 
That's between the 1.0143 and 1.0151 levels.
 
And when you're at work, you could have placed more winners at
8AM and 9AM placing DOWN trades at the 1.0174 resistance level,
with 3 more opportunities to profit before the day is done.
 
So, on January 11, 2012, you have 11 opportunities to make at
least 87% in one day!
 
You see, all you have to do is draw the levels and keep them
there, then wait for PRICE to hit them and strike.
  

 
 
EXAMPLE 2
 
TRADING THE AUD/USD
 
Ok, let's look at another example---this time we'll look at
the AUD/USD pair.
 
We're looking to trade on Monday, January 16, 2012.
 
So, first, we get all our data from the previous trading day which
would be Friday, January 13, 2012.
 
Step 1:
 
Pull up the AUD/USD chart; get the daily HIGH, LOW and CLOSE for
January 13, 2012.
 

 
Remember to click the 'crosshair' tool and slide across the
chart till you get to January 13, 2012.
  

 
Now we have the HIGH, LOW and CLOSE for the day:
 
 

 
 
We plug those figures into our formula and we get:

R4 = 1.0396 S1= 1.0310

R3 = 1.0360 S2= 1.0298
 
 
R2 = 1.0347 S3 = 1.0286
 
 
R1 = 1.0335 S4 = 1.0249
 
 
  

 
 
We draw these support and resistance levels on the chart. Click
the horizontal tool tab.
 

 
Click and drop on the chart 8 times.
Then we're going to set the parameters.
 
  

 
Click the object...
 

 
The 'Properties' button will be highlighted. Click on it.

You will see three Tabs: 'Common', 'Parameters' and 'Visualization'

Under 'Common', put R1 for description.

Then click the 'Parameters' tab key.

 
For 'Value', copy the value you got for R1 from the formula and paste
it in. Click 'OK'.
 
Then you do the same for the second line and so on:
  

 
 

 
Then when you're done, your chart should look like this:

 
 
  

Now let's look at the profit opportunities.

Remember, the rule is, if a BULLISH candle hits ANY resistance,

the candle that follows should be BEARISH only of price
CLOSES on or beneath the support line

The same for BEARISH candles: If BEARISH candles hit support, the
next candle should be BULLISH if it closes on or above the support
line.

So, in the case of the 17th January 2012, the chart above
shows the entire day on a 15-minute time frame.
  

The chart below shows where you could have traded:

 

 
 
Do you notice that right after taking the data for the previous trading
day, you could have profited in 15 minutes after the start of the new
day?
 
The BULLISH candle hit the 1.03100 resistance and the following
candle was, of course, bearish.
 
That's WIN #1.
 
By about 7.15PM, you could have won again by trading DOWN when
the BULLISH candle hit the 1.0335 resistance, with two more
opportunities to profit DOWN at the same resistance before heading
off to bed!
 
That's 5 possibilities before midnight!
  

 
Now, you'll see that price moves beyond the highest
resistance level---1.0396 ---provided by the equation.
 
Not to worry---let's say you woke up in the middle of the night at
1AM hungry for some profit, here's what you could easily do
instead of waiting for the price to come back and hit support.
 
Just input your own resistance point which is easy to
find. Look where I put mine:
 

 
  

 
See how simple it is?
 
You use no indicators. No Bollinger bands. No RSI. No technical
mumbo jumbo. Just simple support and resistance lines can make you
87% to 400% in ONE day if you follow these SIMPLE rules.
 
Now that you've gotten the hang of it, you can pull up any currency
pair you fancy and just plug in the support and resistance lines---AND
PROFIT!
 
By the way, if you don't know how to choose other currencies, just
click on the circled portion of your MT4 platform:
 
  

EXAMPLE 3
 
Ok, let's look at another currency pair--- the GBP/USD on
Tuesday, January 24, 2012.

You know the drill.

Go to your chart and choose your currency pair like this:

 

 
Then select 'GBPUSD' currency pair. The chart will load
.
Once it does, get the daily HIGH, LOW and CLOSE by clicking the
'D1' and 'Crosshair' tool buttons:
 

 
  

Once you've done that, slide the cursor over to the date, January
23, 2012 since we're gathering the data for trading on January 24,
2012.
 
This is what it would look like:
 

 
The figures you’ll get for that day are:
 

 
You plug those figures into the formula in the spreadsheet and you
will get:
 
R4 = 1.5608
R3 = 1.5577
R2 = 1.5577
R1 = 1.5569
 
S1= 1.5554
S2= 1.5546
S3= 1.5538
S4= 1.5515
 
 
 
  

When you copy those values and paste them in 'Value' under
'Parameters' Tab as per the two prior examples, your chart
would look like this:
  

 
Now, you’ll see that the market opens with the price climbing upward.

So, we're looking for price to hit the first resistance level of 1.5569. It
hits it, yes, but price closes ABOVE the 1.5569 so we would disregard
that resistance and look for opportunity at the next resistance level
which is 1.5577.
 
So, as you can see, the BULLISH bar hits 1.5577 and closes BELOW
the resistance.
 
So what do we expect the next bar to be?

A BEARISH WHITE CANDLE.

So, at this point, as soon as the BULLISH bar closes, you place
a DOWN trade that must expire in 15 minutes.
 
Look at that---in just one hour after compiling your data, you could
have profited at least 80% and called it a night.

But, in little over another hour, you could have won again! You'll notice
that price reversed after hitting 1.5577, broke the 1.5569 support, and
sped down towards the PIVOT POINT of 1.55596.
 
The PIVOT POINT is a support level so you'd look for an opportunity
here.
 
And as you can see, price DOES hit the PIVOT and closes on it with
a BEARISH candle.
 
So what will the next candle be?

A BULLISH candle.
  

 
So, as the BEARISH candle closes, you immediately place and UP
trade with a 15-minute expiration time.
 
Another win!
 
But then price breaks through the PIVOT POINT, reverses and
rises to it again. At the third arrow, in this instance it acts as
resistance.
 
So, once the BULLISH candle hits it and closes on it, it's time
to strike again!
 
As per the rules, we expect the next candle to be bearish, so you'd
place a DOWN trade immediately as the bullish candle closes and
you'd have another winner!

See how simple it is?

Let me point out something similar that happened in a previous

example...
 
If you look at the screenshot, you'll see I drew a horizontal line at
1.56251.
 
Why did I do this?
 
Even though it wasn't one of the calculated resistance levels,
no doubt price bounced back from there.
 
This is an emergent strategy.

The market will sometimes reverse at points not calculated.

And you'll just have to use your discretion when this happens
especially when price shoots past R4 and S4... as it did in this case
with R4 (1.5608)
 
If you calculated the levels for January 25th, you could have
profited from the level from the 24th
 
  

 
Because as the new day started, within 45 minutes you could have
won again as price reverted to the high of 1.56251 and turned
downwards where you notice the first arrow of January 25.
 
And there will still 3 more opportunities to profit as price bounced off
the old resistance of 1.5608.
 
Looking back on the 24th January, the chart was riddled with multiple
opportunities to for you to profit no matter the time of day.
 
If you were diligent, you could have made at least 400% on that day
alone.
  

 
EXAMPLE 4
 
Next, we're going to look at the EUR/USD pair.

And the particular day we're going to look at is January 27, 2012. By
now, you should be familiar with how we derive the data for
trading on the 2 7 t h .
 
On the close of January 26, we get the HIGH, LOW and CLOSE
which are 1.31832... 1.30896... and 1.31045, respectively.
 
Plug those figures into the formula in the spreadsheet and it will
spit out the support and resistance levels.
 
Click the horizontal line icon; slide the cursor to the EUR/USD
15 minute chart, and click on it.
 
Do this eight times to get eight horizontal lines.
 
Then add value to the levels by copying and pasting the values from
the formula into each support and resistance level utilizing the CTRL
B shortcut option:
 

 
 
 
 
  

Once you've added the values to the levels, your EUR/USD chart should
look like this:
 

 
 
 
  

As you can see, within an hour of setting up your chart, you

could have won your first trade at support level 1.3087.
 
And within another 90 minutes, your next, by trading DOWN from
1.3087 resistance.

And within another hour after that at the 1.3096 support level.

So, if you decided to retire to bed at that time, you'd altogether

have banked over 200% in just one evening!
 
  

BROKERS
 
 
In the binary options industry, all brokers are NOT created equal.

Most of them are bucket shops.

 
My advice to you is to ALWAYS withdraw your seed money from your
profits and play with the house's money.

Bare in mind that not all brokers accept US customers so keep that in
mind when checking different brokers out.
 
They may also have minimum joining fee (usually around $200) but
most reputable brokers will let you try out a demo account first so
you can get a feel for them and see whether they’re suited to your
needs.    
 
It’s also important that you check they are FSA regulated and
approved, you should be able to find information about this on their
site or get in contact with a member of the support team who can
tell you and provide proof.

Above all else, be vigilant and make sure to research your broker
thoroughly before committing your real funds into an account with
them.
 
 
 

WE  RECOMMEND  
http://gTrader365.com  
  

TIPS ON TRADING WITH THE BROKERS

 
 
When you're trading, the best thing to do is h a v e Metatrader open
with your desired pair AND keep the 'Trade' page of your broker
open at the same time.
 
Choose your desired currency pair and get ready to trade.
 
Your trade page and Metatrader must be open at the same time.
 
To make sure you're timing the trades, look for a countdown to
the next trade.
 
That time should coincide with the expiration of your candles
on your Metatrader platform.
 
But once the time on the countdown is 5 SECONDS AWAY from an
impending trade, PULL THE TRIGGER.
 
First of all, you must determine whether the price will go UP or
DOWN.
 
In this scenario, you see 'HIGH' and 'LOW'.

If you determine that price will drop, you click on 'LOW' On the
other hand, if you predict that price will rise, you click 'HIGH'.
 
And once you've determined that and you've determined how
much you want to risk on the trade, click the
'BUY' button 5 SECONDS before trade time.

Pretty simple, isn't it?

All the details about funding and such are explained in the
brokers FAQ’s on their sites which are pretty straightforward.
  

 
MONEY MANAGEMENT
 
The key to getting rich from binary options is slow and steady.
 
If you open your account with $200, don't put your entire capital
into just one trade.
 
The minimum you can place per trade is $25. So, let's do some math:

Let's say you're not a greedy person and you only want to make AT
LEAST 75% on a $25 trade each day. You just want to win ONCE for
the day and call it quits---after a month, here's what your earnings
would look like:
 
Day Balance
Starting with $200
 
 
1 235
2 250
3 275
4 290
5 305 <---end of week 1
6 320
7 335
8 350
9 365
10 380 <---end of week 2
11 375
12 390
13 405
14 420
15 435 <---end of week 3
16 450
17 465
18 480
19 495
20 510 <---end of week 4
 
 
  

After 20 trading days, being VERY conservative, with at least a

75% return on each trade, you could turn your starting balance
of $200 into $510.
 
With what you've learnt in the earlier chapters, do you think you
can do it?
 
There are MUTIPLE opportunities in each and every day where at
least one of those many can explode your account over just a few
months!
 
But start out small.
 
Place only $25 trades until your account is doubled. When it's
doubled, place $30 trades for month 2. And when it's tripled, play $40
trades.
  

 
The higher your account balance gets, the bigger your stakes
can be.
 
It's been said that 95% of traders lose their money. I feel the
figure's higher.

95 people out of a 100 open their account with the grand idea of
getting rich from pushing a few buttons on their computer
keyboard.
 
But the fact is, they DON'T HAVE A TRADING PLAN. And this
is what will make you rich in the long run. You don't have to
win every trade.

Your wins just need to FAR outpace your losses and you're in
good stead.
 
I can assure you that even if you mistime your trades; you can
make at LEAST 100% a month on your account.
 
And THAT is being conservative.

If you want to read further, the best money management system

for traders is outlined in Ryan Jones' book

The Trading Game: Playing by the Numbers to

Make Millions.
 
In it, he outlines how 'Fixed Ratio' money management can
make you rich in the long run. It's a good read and a book every
trader should have within arms reach wherever you trade
  

 
FINAL THOUGHTS
 
When you purchased this book, it showed that you're serious about
making money and changing the life you're currently living now.
 
I hope that you master this trading technique because it
can serve you for life.
 
As long as you live, you can get up everyday knowing that you
have multiple opportunities to make a profit.

The laws of this trading strategy WILL NEVER CHANGE. They are
mathematical. Scientific. And will remain constant over the passage of
time regardless of what happens within the markets.
 
This is the perfect side business you could ever start that hands you
super-normal gains in very little time.
 
Like any business, you will have losses. But they will pale in
comparison to the multitude of winning trades you will have.
 
I wish you the best of luck in your trading career. And that you will
indeed reward yourself with the independence and freedom that
comes with having huge amounts of success.