Naming products has always been a hit and miss affair. Sometimes it just works, even for made up names like Google. Sometimes it just fails, such as the iYiYi.
AlgoScalper, for me, falls into the latter category. I get the idea: it’s an algorithm that earns you scalps (money). Really though, I think it was just a bad day at the office when that one was chosen.
Poorly named or not, AlgoScalper is yet another front for a Binary Options system.
The sales letter for this particular system is fairly toned down. It consists of a reasonably professional looking site that attempts to reinforce its professionalism by using various certificate stamps and stating that is was:
“WINNER OF THE 2014 INTERNATIONAL ALGORITHMIC TRADING COMPETITION”
I could find zero evidence of this. I managed to trace a potential winner from 2012, but seeing as there is not website for this competition, I could not even confirm the previous winner as being legitimate.
The various certificate stamps are just as meaningless, especially the SSL one as the site does not have HTTPS even when on the deposit funds page…
The video is hosted by a Brit and discusses the origin story of how as a lowly student he got taken for a ride by unscrupulous traders and lost all his money. Then he created the super amazing algorithm and is now rich beyond measure.
He backs this up with “evidence” of his earnings from different Binary Options brokers.
The problem with this so called proof is that it could (and is most likely) the earnings of commissions from the brokers rather than trade earnings.
In fact, if you really want to get in on Binary Options, your best bet is to promote it to the thousands of unfortunate people caught up in this market rather than playing the game. You’re more likely to make money that way.
You see, there is no special algorithm, it’s all lies.
Signing up to AlgoScalper
After handing over your details, you will be signed up to a broker called Regulated Options.
This broker is owned by a company called Leadcapital Markets Ltd which does business out of Cyprus in Europe.
What this mean is that as far as a citizen of the US is concerned, they are untouchable.
Surprisingly for a Binary Options broker, they are registered with Cyprus’s regulatory body CySec – most other Binary Brokers simply aren’t.
This does help improve the legitimacy of the broker and increases your chances of not being screwed over, but they are still outside of US jurisdiction.
The special software referenced in the sales pitch, is in fact a bot that auto trades on the brokers website.
This of course needs to have the blessing of the brokers; otherwise it would be illegal under their terms.
Generally this type of software is either pre-purchased from the numerous bot makers out there or is from the broker themselves. Binary Options affiliate marketers don’t have the time/skills/inclination to bother making something that works, they just want you to believe that they do!
Of course, before you can use the special software you need to hand over some cash, $250 is the minimum. The affiliate will then get a nice return on this, ($200 – $500) as the Binary Options broker is hoping you will keep throwing money in the hope of turning a profit all the while the broker is taking money from the few wins you get.
The Bottom Line
AlgoScalper is yet another fake system from a small sector of online marketers that simply want to make a quick buck from you.
The video confirms that you are not going to get “extreme riches or to be a millionaire overnight” and this is good because if anything you will be lucky to break even let alone turn a profit.
The high risk nature of Binary Options means that even if a trade is on the way up and you bet up, you can still lose due to micro falls in the trade. Enough bad luck and that’s it: you add more money into the black hole or quit.
If you have plenty of disposable income already, then this type of trading can be seen as a hobby, similar to making a bet on the horses, just without the excitement or entertainment.
If you are struggling financially, looking to improve your financial situation, or need money to simply get by, then avoid AlgoScalper and any other Binary Options system.