The binary hedge still works in either situation, only the math is different. This is why I made up the worksheet so traders could adapt the hedge play to whatever the current market conditions were and have some chance at evaluating feasibility on the fly.

By the way, EZTrader is now all or nothing. It’s either you hit your payout or you receive nothing now.

Hi Azam-

I pulled this off another site today which is illustrative of the point I’ve been trying to make about getting money out of EZTrader.
Let me set the context of this message – A person was going on various sites saying to the effect of “EZTrader is a ripoff and owes me money…” etc.

When in reality EZTrader had returned the trader’s funds/deposit – but not profits due to the trading restrictions on the bonus cash – which are clearly stated in the terms of service.
Here was EZtrader’s response on that “Scam” board:

“From EZTrader

The trader, Mr. Kurt N. (which is not the fake name used by him on the report) has received all his refunds due – in a timely manner, the refunds were issued to him on January 5th, 2010 which he has received – a full eight weeks before he started posting complaints online.

The trader believed that an additional portion of funds which were bonus money not eligible for withdrawal due to lack of sufficient trades was due to him, and kept threatening to post negative comments if the funds are not released to him.

Mr. N. threatened to harm EZTraer in various ways, including posting negative reviews online (which he has done), open a blog and genearlly smear EZTrader for no just reason when all which was due to him was fulfilled in a timely manner.

EZTrader operates completely legally and confirms to all anti money laundering rules and procedures.

When a trader requests a refund, the process takes 3 business days for EZTrader to complete due to the required verification steps (for first withdrawal only) and additional 3-4 days for the traders’ bank to process the refund and post to his/her statement, similar to a refund being issued at a store and taking a few days to post.

Mr. David Campbell, EZTrader’s head account manager has communicated with Mr. N. countless times until the situation was finally understood by Mr. N. late February. “

Now-

How might a trader avoid the unpleasantness of being in Kurt N’s situation? The answer is the hedge and double strategy we outlined here in the Sept post.
Why does this work?
Because using the hedge and double “churns up” some low risk trading volume for the bonus cash recipient – while at the same time presenting the trader with a few swings at the fences for a big payday – free and clear of the “bonus cash restrictions” due to the trading volume.
Some math:

EZTrader requires 2 times trading volume of the trader’s deposit plus the bonus cash in order for the funds to be free and clear (pulled right off their FAQ page). How might a trader work the hedge and double binary options trade to generate 2 times the cash+bonus position without losing his shirt in the process?
Assume trader deposited $500 and received $100 bonus cash (a typical offer at Tradesmarter or EZTrader or Binarix.
2 times $600 = $1200 – so we have to build $1200 trading volume in the account.

Answer:
Pick a 75% yield (ITM) binary options security with a 15% yield on OTM (out of the money), and use the hedge and double selectively in $200 blocks to build binary options trading volume in your account.
How does the math work out?
A typical hedge and double position on a 75% yield/15% OTM binary options trade has an expected loss of 5% when one position is in the money, one position is out of the money. Having said that, the hedge and double creates $400 in trading volume per use when committing $200 of capital to each side of the trade.
So the first trade is made, commiting $400, losing 5% – a $20 loss. Net trading volume: $400, account balance $580 ($480 + $100 bonus cash – unused). So make another trade:
$400 trade (2 $200 positions) – 5% loss ($20 cash loss). Ending position: $560 ($460 deposit + $100 bonus cash) trading volume = $800.

You should be able to see where this is going:
Make another hedge and double: $400 trade (same story – 2 opposite $200 positions) – expected 5% loss ($20 cash) – ending balance: $540 ($440 deposit + $100 bonus cash). Trading volume = $1200. Based on the terms of EZTrader’s bonus cash terms, your $100 bonus cash is free and clear – and you’ve taken three swings at the fences and failing a complete catastrophe (possible but hopefully not likely if you’ve done your homework and timed it up decently) you’ve got $40 extra cash in your account just for trying.

Now: with regard to Cyprus, fears about credibility: visit their site. Look at the logos at the bottom of their webpage:
Nasdaq, Reuters, Mcafee, Visa, Mastercard, American Express.

Exactly how much more credibility do they need? Those companies don’t just let any fly-by-nite website use their logos. Contest a charge to your credit card with Visa, etc. and they risk having their entire account frozen. Think they want that in a fight over a lousy $500 or $1000 or even $10000 account? I don’t think so.

Kurt N (above mentioned complainer in block quote) is very fortunate EZTrader hasn’t sought civil damages. They’d bury him.

I have checked that almost all the brokers offering these are based in Cyprus…. Well I have heard horror stories with anything related to that island, especially online ventures…

So my real question is, have you been profitable using these brokers and get to withdraw your earnings?

Hope you understand.

By the way, did your investment in standard options mostly come from profiting in binary options? And would you mind sharing your strategies using standard options?

Personally, most of my trading is straight options trading – because that’s where the real money is (with minimal managerial headaches – which is a principal lifestyle priority of mine). Once you have enough capital to open that type of account- that’s where you should be heading – but in the meantime binaries are an EXCELLENT training ground to learn the lingo and make big gains (relatively) with small capital without commissions and spreads to kill your capital base.

The reason I haven’t worked the forex trade by the way is frankly it’s easier to clear a few bucks with the bonus cash than working like crazy trying to make the forex side work – and I’m really into making the maximum gain with an acceptable amount of risk and minimal managerial headaches. That’s why I work with mostly standard / American options, now that I have that kind of capital.