In July they began promoting a social trading feature called the Binary Replicator. The system is supposed to allow you select from among the top traders on their platform and copy their trades into your trading platform.
Our tests of the system generated very interesting results. I opened an account on July 21 with a balance of $1500 and activated the replicator. In reality the system does not allow you to select individual traders with whom to copy as is displayed in the following graphic. I was told that the have a program that does select the best traders at any given time and copies their trades. I left the system activated for several weeks at a level of $10 per trade. At the end of 3 weeks I had $2600 in the account. They placed 315 trades with expiration times of 30 or 60 seconds and had 251 winning trades, 54 losing trades and 10 Ties. This works out to an outstanding success rate of 80%.
The following graphic is taken from the trading history in our account.
Whatever system they are using the results so far are difficult to argue with. A success rate of 80% with over 300 trades is very convincing. Binary Options brokers generally rely on most traders losing money in order for them to profit. For a broker to provide such a high profit trading tool would make one skeptical. When I pressed management how they could offer this feature and still expect to make money in the long term, they claimed that they were not actually the market maker and just provided the platform and the services to a bank which payed them a commission for every dollar of trading volume they provided. For the short term this explanation makes some sense, but long term, the “bank”, would have a hard time supporting a platform that helped traders to a consistent 80% return.
For traders looking for an automated system or binary social trading platform I highly recommend giving the binary replicator a try. Make sure to monitor the trades on a daily basis and be prepared to pause the system as soon as you see the results going the other way.