Frequently Asked Questions

Back to Main Page

Table of Contents - Questions We Have Received

  1. d'Alembert theory is related to Martingale theory. D’Alembert argued (incorrectly) that one flip on a coin will influence the next. Coins and dice have no memory. How does your system avoid eventually losing it all?

  2. The win/loss ratio for each trade seems to be equal to 1 to 1. Trade accuracy is or can be less than 50%.   This led me to think that when I learned this method I can use it not only for forex but for any other trading or gambling activity that have same loss/return ratio. Am I correct?

  3. How much capital would I need to trade the system successfully. Minimum?

  4. Do you only use the 2 forex brokers mentioned for Metatrader charts?

  5. Are stop losses and/or profit targets used for trades at time of entry?

  6. Can you clarify the terms of the Guanrantee?

  7. Is this system robust and will work in the future and adapt to different market conditions?

  8. Are the trades placed and left, no monitoring at all? Can one work their day job and trade this easily?

  9. Is the Expert Advisor needed to trade the system?

  10. I am brand new to Forex, can you give me some direction to get started?  Is your course suitable for beginners?

d'Alembert theory is related to Martingale theory. D’Alembert argued (incorrectly) that one flip on a coin will influence the next. Coins and dice have no memory. How does your system avoid eventually losing it all?

d'Alembert is not related to Martingale other than the principle of increasing trade (bet) size to recoup losses. Martingale doubles the bet after each loss, and when used in a casino will eventually lose because your bet size will run into the "table limits" eventually and keep you from being able to double your bet size.

In trading, there is no such thing as a "table limit", so, if you had enough cash, you would always eventually win with a Martingale strategy in Trading. Nevertheless, the Binary Equation is NOT the Martingale strategy and does NOT double the trade size after each loss.

There is also a second important distinction with trading as opposed to games of chance. Although it is true that dice have no memory, a tossed coin does not know if heads or tail came up last, etc. Trading is NOT 100% random in its outcomes. Markets do NOT move completely randomly. They tend to trend.

So, if we have a method for determining the current trend direction and take our trades in that direction, we do NOT get random results. Binary does use a method of determining current trend direction and it does take its trades in that direction. The method is not complicated, and it certainly is not anything close to 100% accurate - - but it is consistently 50-55% accurate, so l o n g stretches of losing trades are avoided.

Binary combines the mathematical calculations of increasing odds for a certain outcome from random events, with a strategy which keeps our results from being totally random! And that is why it works so well.

 

Back to Top

The win/loss ratio for each trade seems to be equal to 1 to 1. Trade accuracy is or can be less than 50%.   This let me think that when I learn the method I can use it not only for forex but for any other trading or gambling activity that have same loss/return ratio. Am I correct?  

You are correct that the Binary Equation Strategy is profitable for any trading/gambling scenario that has near 50/50 odds. So I am certain it could be adapted for these other opportunities, but I have not done so. However, I would point out that in many gambling scenarios you may find that you can't operate the Binary Equation Strategy with complete accuracy because you may run into problems of "table limits". Again, I can't say that for sure because Binary was developed for trading Forex, but the math is certainly solid and without consideration to what casino's may do to try to stop it, Binary will work for any proposition that is near 50/50.
Back to Top
 

How much capital would I need to trade the system successfully. Minimum?

If you trade Binary with a Micro account (InterbankFX is one of the brokers who offer such accounts - www.interbankfx.com) Then you can trade with lots valued as low as ONE CENT per pip!  If you actually did trade this way (a micro account with lots valued at .01 per pip) then 1 unit would be worth .15 (fifteen cents) and you only need an account value of $15 (Fifteen Dollars) to trade Binary!!

So, it's safe to say that you can trade Binary with a micro account with almost no money at all!  I would still recommend at least $150 and a single unit value of $1.50 - otherwise it will take quite a while to build up a substantial amount of profit.
 
Back to Top

Do you only use the 2 forex brokers mentioned for Metatrader charts?

ANY forex broker can be used, but if you want to use the indicators we provide and the automated program we provide, then you will have to use charts provided through MetaQuotes. InterbankFX & MIG are just two of many such brokers. I have a list of many others at: http://www.profitsareup.com/brokers_for_MT4.htm

Some may be interested in InterbankFX, because they offer Super Mini accounts where you can trade with dime lots.
Back to Top

Are stop losses and/or profit targets used for trades at time of entry?

Yes, all trades are entered with a fixed Stop Loss and a fixed Profit Target - which are equal distances from the entry.
Back to Top
 

Can you clarify the terms of the Guarantee?

The full terms of the Guarantee can be found by clicking HERE.
Back to Top
 

Is this system robust and will work in the future and adapt to different market conditions?

Absolutely. That is one of the unique features of the Binary Equation Strategy - because the power of this system is its money management system, it is incapable of being effected by changing market conditions!

 

Back to Top

Are the trades placed and left, no monitoring at all? Can one work their day job and trade this easily?

Yes, each trade is placed with a preset Stop Loss and preset Target.  Every trade runs until it hits the Stop Loss or the Target.  Once the trade is entered there is NO maintenance required.  You can easily work your "day job".  You simply take a look at the charts/Binary spreadsheet for a couple minutes before you leave for work in the morning, and again when you get home from work in the evening.  That's all there is to it.
 
Back to Top
 

Is the Expert Advisor needed to trade the system?

No, it is not a requirement.  You can certainly take the trades manually if you desire.  However, the Expert Advisor makes it much easier, because then you don't have to be at your computer to take or monitor trades.


 

Back to Top

I am brand new to Forex, can you give me some direction to get started? Is your course suitable for beginners?

If you are very new to trading forex and that you have no knowledge of MetaTrader charts, or the special automated programs they can use called "Expert Advisors", there are two important steps for you to take to get a basic education to be able to trade successfully.

The very first thing you need to do is get some basic education on the Forex market and how it works. There are courses available that you can buy online, but I really don't want you to have to spend money for a basic education on Forex. For that reason, we include in the Binary Equation Manual information on getting a free course from ProfitsAreUp.com - but we are making it available to you for FREE right here! It's called "FX Course for Beginners". It comes in five sections and you can download it with the following web links.

FX for Beginners - Section 1

http://www.profitsareup.com/Education_Materials/Forex_Intro_Course_Sec1.pdf

FX for Beginners - Section 2

http://www.profitsareup.com/Education_Materials/Forex_Intro_Course_Sec2.pdf

FX for Beginners - Section 3

http://www.profitsareup.com/Education_Materials/Forex_Intro_Course_Sec3.pdf

FX for Beginners - Section 4

http://www.profitsareup.com/Education_Materials/Forex_Intro_Course_Sec4.pdf

FX for Beginners - Section 5

http://www.profitsareup.com/Education_Materials/Forex_Intro_Course_Sec5.pdf

You should be able to just click on the links and download the material, if not, just copy the URLs into your web browser and download the 5 sections of the course.

You need to study this material so you can learn some basic - but important - information on the Forex market.

A second document we make available to you is called "Forex Course by SITCO" and you can download this document for free using the following web link:

http://www.profitsareup.com/Education_Materials/ForexManual_SITCO.pdf

Again, you should be able to just click on the link and download the material, otherwise copy the URL into your web browser and download the course.

There is also another company which makes available free basic education on learning to trade the Forex market - www.babypips.com

After you familiarized yourself with this material and learned the basics of trading in the Forex market, you then need to take Step Two.

Step two is learning about the charts and trading platform that are described in our course - The Binary Equation Strategy. These charts/trading platform are created by a company called MetaQuotes (www.metaquotes.net). MetaQuotes created their program to combine both Forex charts and a "trade station". In case you are not familiar with the term "trade station", it simply means a computer program that is used for placing trades to buy and sell currencies. MetaQuotes is one of just a few companies that has successfully created a single program that lets you view price charts and place trades all in the same program. MetaQuotes then provides their charts & trade station program to Forex Brokers who then program the chart & trade station program so that the trades are sent to their own brokerage firm.

These Forex brokers then make this chart & trade station program (called MT4 charts) available for free to their clients, and, to potential clients. In other words, they allow you to download the chart/trade station program from their website, and open a free "Demo" account with them. The demo account works exactly like a real account - except the "money" they deposit in the account isn't real. Nevertheless, it allows you to learn how to trade using the MetaQuotes program and the Forex broker hopes you will eventually open an account with them - but you are never required to do so.

Now, you really have to learn how the MetaQuotes chart/trade station program works. So, you need to open a free demo account at one of the many Forex brokers who offer these charts. There are many to choose from, such as MIG (www.migfx.ch) or Alpari (www.alpari.co.uk) or others. I would suggest a broker here in the US that is fairly well known - InterbankFX. You can open a demo account and download the free chart/trade station program by going here: http://interbankfx.com/open_a_demo.php One VERY important point is that you want to open a demo account for the version 4 software NOT the version 3.8.

Once you have set up the charts one of the best ways to learn how they work and how trades are entered is through the Help file in the chart/trade station program. Just select Help from the top line of the menu, and select Help Topics. This will open the Help window and there is everything you need in the way of instructions to learn how to use the chart/trade station program.

Also, there are websites where you can find further instructions on using the MT4 charts, such as:

http://interbankfx.com/charts.php

This information will take you a very long way towards being a confident and educated Forex trader.


 

Back to Top
Copyright © 2006  Sir Isaac Trading Company All rights reserved.
Revised: 04/26/08.