CHAPTER 1 WHAT ARE VOLATILITY INDICES? Usually, when thinking about indices, the first thing that often comes to mind is the DAX, Dow Jones or NASDAQ 100. However, the Volatility Index is quite different. Volatility defined The term ‘volatility’ can be explained as a statistical measure that indicates the pricing behaviour of the security or market index and helps to estimate the fluctuations that may occur in a short period of time. In simpler terms: volatility measures how moody the market is or will be in the near future. What is VIX? The Volatility Index, which is known by its ticker symbol VIX, was developed at the request of the Chicago Board Options Exchange (CBOE). In 1992, the CBOE asked Robert Whaley, a professor of management and director of the Financial Markets Research Center at Vanderbilt University, to create a formula that would calculate implied stock market volatility based on prices from the S&P Index options. A year later, Whaley computed daily VIX levels dating back to January 1986, based on his algorithms and the CBOE's historical record of index option prices. The VIX is a popular real-time market index, quoted in percentage points, which represents the stock market's expectation of 30-day forward-looking volatility implied by S&P 500 Index options. Easier explained, the VIX is all about "implied" volatility: it measures how much traders and investors are ready to pay to sell or buy the S&P 500. The index is a registered trademark of CBOE. The VIX serves as a contrarian mood indicator, helping to determine whether there is too much fear or confidence in the market. Typically, at the point when the sentiment reaches one extreme or the other, the market is inclined to reverse. In times of political uncertainty and economic crises, the VIX tends to surge. This fact has given the CBOE Volatility Index its bynames like the “fear gauge” or the "fear index", as it is viewed by many as a market anxiety and fears measurement. Investors and traders, as well as portfolio managers and research analysts, suggest taking into consideration VIX values to determine market risk, fear and stress when taking investment decisions. Despite the fact that the VIX might or might not be a thorough protection from risk, traders still prefer to check this indicator from time to time to measure the direction of the attitudes towards the market and the possible path of short-term trading. As a financial indicator in its own right, the CBOE Volatility Index can be used as a means towards gains or the protection of portfolios. How does the VIX work? Traders and investors tend to buy options in order to protect themselves from the downside risk when anticipating a possible market fall. As they purchase these, the implied volatility rises, and that, in turn, raises the value of the VIX – and vice versa. Traders who are looking for ways to incorporate the VIX into their portfolios have a number of alternatives to choose from. For example:  VIX futures;  VIX options;  Exchange-traded notes (ETNs);  Contracts for difference (CFDs) Now the VIX I explained above is quite different from the binary Volatility indices. The Binary Broker Volatility indices are synthetic(made up/a copy) Volatillity indices meaning they have been made up by binary broker and they are run by binary broker quite different from the real VIX explained above. I will explain more about these made-up Volatility indices in the next chapter. But in a nutshell binary.com’s Volatility Indices are synthetic indices that mimic real-world market volatility and are available for trading 24/7. They are based on a cryptographically secure random number generator audited for fairness by an independent third party. Volatility Indices give you exclusive access to various trade types, such as Up/Down, Touch/No Touch, In/Out, Asians, Digits, Look backs, Reset Call/Reset Put, Call Spread/Put Spread, Only Ups/Only Downs, and more. Volatility Indices are further categorized into two classes:  Continuous Indices – Choose from the Volatility 10 Index, Volatility 25 Index, Volatility 50 Index, Volatility 75 Index, and Volatility 100 Index. These indices correspond to simulated markets with constant volatilities of 10%, 25%, 50%, 75%, and 100% respectively  Daily Reset Indices – Daily Reset Indices replicate markets with a bullish and bearish trend with a constant volatility. The Bull Market and Bear Market indices start at 00:00 GMT each day, replicating bullish and bearish markets respectively CHAPTER 2 WHY YOU KEEP LOSING MONEY ON INDICES There are variety reasons why man people keep losing money on these synthetic binary.com indices it can be due to lack of good strategy, poor trading mindset, perhaps lack of good capital, etc but some people have it all they have a good trading capital, right trading mindset and killer strategies but still they keep losing money on and on. Don’t get me wrong here, am not saying they don’t make any profits, no! but they make super profits for a while then a losing streak starts and their account gets wiped out. In essence losses>>>profit which isnt good anyway. If you don’t believe me jus go to your indices trader friend and look at their profits and losses history you will be surprised by the reds and negatives u see. Why!? Cause they lose much than what they gain. Here is why. While searching a site to put some warning and complaints about a Binary Broker, I found that its not quite possible and so i decided to just go about sharing this secret and I how i will be doing great job saving life and worth of valued traders all along. Also I checked any complaints has been submitted by anyone about this broker, I am really shocked seeing lot of complaints submitted by victims and hope that people and institutions will take necessary steps and action to warn this broker and advise traders worldwide who are trading in binary.com Well, let me introduce myself before I write total story of my broker (binary.com). I am Gibran Sami from Algeria and engaged in trading field for last 5 years with plus minus track record but were not very much successful in trading. That’s why, I was in quest of lot venues of trading to grow my capital. Most of the time I conducted trading in FX market following lot of strategies, tools, techniques, systems and EA etc. but success rate is very poor that cannot live on till recently 1 year back. To build my dream growing my capital for better futures, I traded currency pairs for the first year using many binary brokers but could not achieve success at all due to their dishonesty. However, 3 years ago(2016) I discovered another Binary Broker (Binary.com) based in Malta and UK and found their web based platform which looks very fantastic as their execution and payout seems much better than others. Considering this facts, I opened Real Account and deposited 2000 USD with a hope to trade binary options and currencies successfully. Just few days I could do trading gaining some profit almost 600 USD then the nightmare started as they were squeezing me many ways by freezing platform and manipulating prices and expiry etc. I try to contact them by all means but in vain. No response I got from them but continued my trading. Day by day I was loosing money and finally I also discovered some of their proprietary assets they introduced lately which are called Volatility indices where money can be earned easily. So, I tried to do some trading in volatility indices following many strategies which they have facilitated in their platform but everywhere I found their price manipulation not to make profit but lost lot of money within few days. I became aggressive more and more to recover losses and started to find any strategies can help me to recover total losses. So, I searched many things in the Google, Facebook and YouTube and I am very fortunate that I fell into another bluffer who were selling some kind of software Tick Picker as they assured it’s accuracy 90% but using the software I lost almost 75% of my capital and later I received some offer from the vendor of that software who said that they have some exclusive strategies that generate profit 25% - 30% per day if I do trading in volatility indices dedicatedly. I could not afford their strategies since price were quite high. After depletion of total fund in my account, I fully engaged myself in researching this broker thoroughly. Almost 8 months and half I spent doing research, investigating, evaluation and study on their system and found many things what I have outlined below for all traders to read and fully understand what’s real happening in the binary synthetic indices market. Let me talk a little also about “binary options” asset. Volatility indices plus the binary options these assets are nothing but kind of tricks alluring traders to earn money quickly giving lucrative payout feature. Nowadays Binary Options business are growing fast like mushroom and regulatory bodies and organization accord licenses to entrepreneurs who wish to establish their business though they are not familiar with myth of this business. Regulatory bodies and organization feel that it’s a business under regulatory framework which brings no harm but how dangerous this business bringing disaster in global economy and global financial arena. Binary options broker does not take loss but all the way they gain everything. I am explaining how they work. Similar to FX broker, Binary Options broker including binary.com get price feed from Liquidity Provider or clearing organization from where they get Prime Service as Institutional to enjoy lowest spread for bulk business and large execution on monthly basis. Usually they get spread at 0.20 pips and feed the price in their platform which are normally 2-3 pips gap. If you compare their feed price with institutional spread or quotes from any reputed broker then you will find gap of 2-3 pips. While any trader place any order for options, immediately their system hedge the position compensating 1 pips what they get from Liquidity Provider or clearing organization. If trader win then they settle the payout from spread they keep until closing of orders. If trader loose any amount then that amount they utilize to cover their spread of 0.2 pips to pay to Liquidity Provider or clearing organization and the rest goes to their pocket. This is the real trick behind this business. They do not pay any single dime from their pocket and they do not bear any losses which prove that they are gaining always profit 100%. Just they take advantage of spread to make payout to traders. It’s noteworthy to mention that this kind of activities in global financial arena slowing down global economy especially FX market and also destroying market liquidity where major traders are not participating in the market. A class of people doing unscrupulous things and majority are suffering. Why FX trader do not realize this norm and they do not fight for spread even although in FX Trading they fight with FX broker for lowest spread. Once any trader enters into Binary Options trading field, they become blind not thinking anything because main attraction of Binary Options are Higher Payout within shortest time. There are no financial term of Binary Option in dictionary but it’s either Digital or Barrier Options with standard length of maturity where mispricing occur always. In Binary Options all are fixed which means it’s pure gambling only to deplete trader’s pocket. How many traders win in this field ? I think very few, those who knows their system. Nowadays anyone can do Binary business easily since Cyprus is safe heaven to establish the business where regulation are much liberal and there are technology provider (Spot Options, Leverage etc.) who set up business quickly including licenses as well as arrangement of Liquidity Providers. They have package deal and no previous experience required to start business and physical presence needed. Just Spend 200,000 USD paying to technology provider and within a week everything will be up and running because total business are web based and that’s why, office space are not necessary and can operate the business from any small apartment. I have a question whether regulatory body or authority understand about this business as they issue license easily to destroy global economy. Do they understand really what’s the impact of mal-practice of such thing in global financial arena? Do you they really possess any knowledge of global economy ? They do not treat any compliant fairly if any victim approach them. I think it’s also core secret of regulatory body or authority just to issue license and sit down quietly not listening anything. Just let the world go astray. Likely Binary.com also doing same thing manipulating everything not allowing anyone to make profit. Moreover, they have fantastic and lucrative asset class (Volatility indices) which I call as death trap where traders loose money very quickly because they strongly manipulate their index.The binary Volatility indices are quite different from the VIX. Binary calls them synthetic indices meaning they mimic real world market-volatility..bullshit!! they are simulated by binary.com themselves and for worst jus to make traders lose money and of course whatever money u lose goes to the broker. They have set the system that you can start making profits fast then the red streak starts and you keep losing and losing till they wipe out all your money especially traders with a small capital(<1000). To grow this business enormously, they employed some scam artist who upload some videos in YouTube proving to earn USD 10,000 within 15 minutes. Those scam artist are from Japan, Malaysia and Indonesia whose core business are Internet Marketing. Seeing those kind of videos, Traders jump into the site and Scam Artist get paid for their job and besides they gain some residual from selling some strategies and software. This is real myth behind total scene of Binary.com The CEO of Binary.com (Jean-Yves Sireau) is a French guy who declare himself as Fund Manager running a hedge fund but failure to manage his fund. But he founded this Binary.com business as money making machine where he makes trader looser and beggar. He piles up extreme cash in his pocket but destroying the industry gradually. If I see this bloody bastard face to face, I would **** on his face with biggest slap that he will not forget his whole life. He is computer geek and a programmer who has designed his platform so that he can manipulate everything. Not only he manipulate platform but he uses some script to control computer of traders as well as internet connection to slow down any order to dispatch to their server. Binary.com wont allow traders to use automated trading with volatility indices unless its their product they are selling you. If anyone admire about them with positive feedback and rating, I need that person with a hard proof of everything showing bank statement that he received 20,000 USD profit in his bank account. Binary.com appointed many people around the world to give positive feedback and rating and they are well paid off for their duties. If you want to know about CEO of Binary.com, you can read something about him through following link : http://www.financial-spread-betting.com/Bet-on-markets.html Calling them for any response is horrendous. In case anybody receive call, then you will find the call connected to a cellphone of a guy in the street, fish market or in a coffee shop with loud environment. Total business are run as one man show as CEO is everything. He is telephone operator, accountant, compliance officer, clerk, dispatcher and everything. Only 4 people work in this company yes 4 people including his wife. He does not need lot of people because he is computer geek and he designed everything web based which are user-friendly for him to operate from anywhere. In his interview it’s mentioned he was awarded by former Prime Minister of France and I wonder why Prime Minster did not realize that day this guy will **** the world one day for such award. He is real gambler and great ***er destroying whole world. If he has courage to defend me, I am ready to fly to confront anytime. To tell the truth, in my first 4 years trading career I never achieved anything except one. To gain expertise and experience, I spent almost 10000 USD attending many seminars, webinar, courses, purchasing many kind of systems, utilizing many FX advisory services, Signal services, Trade Recommendation and also world class Technical Analysis. All the way I lost money on and on. Within 3 years I just earned 1000 fresh pips. But thankful since my research and study and a lot of help from some special people I came to figure how binary manipulates the system and how to counterattack it without binary.com noticing. Am not giving promo for my strategy here or Bragging about anything but am trying to point out the real truth. As long as the Volatility indices market is simulated by 4 people then you will continue to lose more money everyday but also this comes to favor for people who have learned about the system and counter this manipulation. That’s why even my strategy has a very strict 3hrs trading time set specifically for a certain time for some special reasons because not every time you see a perfect set up doesn’t mean you should go and place your order and a fixed profit income is vital because when you earn big According to binary system prepare to lose big but not for me not for people who know how to counter the system. In a nutshell, I urge all trader friends not to jump to Binary.com trading head on especially not to invest their hard earned money in those Binary.com without specific knowledge on the system. Also wish that this message should be spread by everyone around the world to save astute traders and their hard earned capital. CHAPTER 3 VIT STRATEGY 1 To begin, all my 2 strategy guarantees:  20% ROI(profit return)/day  1hr-3hrs of trading only  Super accuracy NOTE:” strategy 1 works for BOOM 500 and CRASH 1000 only” First Step: TREND ANALYSIS Am sure most traders know how to analyze trends and if u don’t then you need to revise your basic Forex class. Trend analysis is pretty basic stuff but for crash 1000 and boom 500, start your trend analysis on 5min timeframe. Its crucial that you trade BOOM 500 on DOWNTREND for this strategy. Why?! because Boom always booms(spikes up) in a blink of an eye unexpectedly and you don’t want this to find you in open trades. As shown above Vice versa goes to crash 1000, when you do analysis on crash make sure you apply the strategy only when CRASH 1000 is in UPTREND. Why!? Cause crash as its name always crashes(spikes down) unexpectedly and when this happens you better not be in open trades. Now after trend analysis on charts make sure you follow the next steps only and only if the trends are as explained above i.e Boom is in downtrend and crash in uptrend. Second step: TRADING TIME As I explained in the past chapters about market manipulation and so on then you need to read and understand this step carefully. The indices are simulated by the Broker not the mimicking the live market shit they are telling you. But the broker always and always manipulates the market when most Traders are in the market or should I say when the market has lots of orders. So one can when is this time? The answer is pretty simple, Market sessions!! Yes the Asian,London and Newyork sessions. Why?! Cause these are the working hours in different time zones and since the broker made sure you believe the market is mimicking the real-live stock market then He knows you will be trading mostly on Market sessions. You will start asking yourself that when does this guy trade? The answer is also pretty simple. Non-market hours, I believe the biggest mistake binary.com made is making the indices run 24/7 because they will not be available for all 24/7 hours on their simulation of the market, they are only active when most people are active. Now when are these Secret Non-market hours?! Lets figure it out then, For day traders the most productive hours are between the opening of the London markets at 08:00 GMT and the closing of the US markets at 22:00 GMT. The peak time for trading is when the US and London markets overlap between 1 pm GMT – 4 pm GMT. The main sessions of the day are the London, US and Asian markets. Below is a brief overview of trading sessions: LONDON SESSION – open between 8 am GMT – 5 pm GMT;*** US SESSION – open between 1 pm GMT – 10 pm GMT;*** ASIAN SESSION – opens at about 10 pm GMT on Sunday afternoon, goes into the European trading session at about 7 am GMT; Now you notice that all 24hrs in a day are covered...but are they?! The binary.com broker always simulates the market to their favor when most people are trading and that is during London and US sessions and first 4 hours Asian sessions. Therefore our golden time is 5:00am GMT – 8:00am GMT. Apart from this time you will be trading at your own risk. Trading in 5 am GMT – 8 am GMT doesn’t mean that you have to stay for all 3hrs sometimes I finish my trades in just 1hr. Therefore just make sure if you use this strategy then stick to the golden hours. Third Step: PLACE ENTRY ONLY AFTER A SPIKE DOWN/UP  FOR BOOM 500 Boom spikes up unexpectedly and we want to utilize this to our favor. Now when you go on your BOOM 500 chart you will not after all bullish(spikes)candles there are is a bearish candle following with at least 50pips thou this bearish candles range from 50-77pips. as shown below Now only after bullish spike wait for a wick(candle tail) on bullish spike to show up immediately after the wick shows up and jus before the bearish candle start you go short on boom 500. WHEN U ENTER A SELL ORDER STAY IN THE MARKET FOR 50-60PIPS(1 bearish candle) ONLY. As I said earlier that the bearish candle has 50-77pips therefore exit the market before the first bearish candle closes. NOTE; RULES;  Trade boom on a DOWNTREND only  enter a sell order 5seconds(10pips wick) after a bullish spike Up  stay in the market for 50pips(1 bearish candle)only then exit  NEVER enter a trade after the bearish candle is formed Some may ask why are we seeing double bullish spikes like shown below 1.This happens mostly in UPTREND which we clearly don’t trade on strategy 1. 2.This happens mostly when the broker is simulating the market to his favor but rarely very rarely on our golden time. 3.Its not a problem if one followed 50pips rule (stay in the market for 50pips only). 4.if this happens to you in the market in DOWNTREND don’t close immediately wait for it to retrace back to your entry. Sometime not only double spikes but… as shown above but this wont find you in open orders if u strictly followed the rules I explained above.  FOR CRASH 1000 Vice versa goes with crash, when crash 1000 spikes down unexpectedly only after the bearish spike we enter our trades. You can notice that after every spike down there is at least one bullish candle following. As with boom this bearish candles range 50-77pips. The same rules apply to crash 1000  Trade crash on UPTREND  Enter a buy order 5seconds after a Spike down  Stay in the market for 50pips(1bullish candle)only  Never enter a trade after a bullish candle is formed Stick to the rules to avoid these scenarios in the market LOT SIZE AND SPIKES COUNT Now one can see that when we use 0.10-1.00 we get quite a small profit for 50pips right. Also how many spikes should one trade in a 3hr period **Trade a maximum of 10spikes **The smaller the lot size the higher count of spikes traded That’s why I recommend this strategy for people with 500$+ Account capital I will explain why.. Because our strategy needs us to stay in the market for 50pips/spike then we need to utilize the most of these 50pips. Meaning use the largest lot size your account can handle. To make this simple I will show the account equity and the lot size required in a table ACCOUNT CAPITAL LOT SIZE REQUIRED PROFIT/50PIP 10SPIKES/DAY 1000$+ 25.00 10$ 100$ 900$-500$ 17.00 8$ 80$ The reason we use big lot size is because of the accuracy of the strategy. I have been using the strategy for the past months and worked perfectly as long as I stick to the rules. Also one can have a good trading strategy and mindset but also the capital matters very much. If you are short on capital and need to boost it to 500$ starting capital. Contact me in this link https://t.me/Gibransami for more capital boosting info. 400$-499$ 10.00 5$ 50$ 300$-399$ 8.00 4$ 40$ 200$-299$ 5.00 2.5$ 25$ NOTE: The above VIT 1 still works as long as you stick to the rules. Here is a thing now this is the second edition on this book so we have updated the VIT 1 Strategy and we lamely call it VIT 1+. So we are going to breakdown the VIT 1+ STRATEGY for you. CHAPTER 4 VIT 1+ STRATEGY Why did we updated it!? The reason is that binary always manipulates/changes the Market behavior/mimic so that’s why you might have had a good strategy and after BINARY studies your Strategy you start to notice a loosing streak. So that’s why we always update our strategy and continue milking the Broker. The Strategy is a little different from the VIT 1 but still applies the same principles. As Always we begin with ANALYSIS: FOR BOOM INDICES (500/1000) First Step: TREND ANALYSIS: The TREND has to be a DOWNTREND…I repeat again make sure the TREND IS IN A DOWNTREND FOR THE BOOM INDICES. Why?! So that when you are spiked out in reds you can wait for it to retrace back. As Always do your trend analysis on a 5min-30min timeframe as shown below: This is BOOM 500 in DOWNTREND in a 15min timeframe. Trade using VIT 1+ only in DOWNTREND. Only in DOWNTREND because we are selling and we don’t want to be spiked out(boomed) out while in open trades.