Dual binary option 43

Fuzzy Binary Tree Model for European Options. S. Muzzioli H. Reynaerts. The derivation of the risk neutral probabilities in a binary tree, in the presence of uncertainty on the underlying asset moves, boils down to the solution of dual fuzzy linear systems. The issue has previously been addressed and different solutions to the dual systems have been found. The aim of this paper is to apply a methodology which leads to a unique solution for the dual systems. Preview. Copyright information. Authors and Affiliations. S. Muzzioli 1 H. Reynaerts 2 1. Department of Economics University of Modena and Reggio Emilia Italy 2. Department of Applied Mathematics and Computer Science University of Gent Belgium. Personalised recommendations. .RIS Papers Reference Manager RefWorks Zotero. .BIB BibTeX JabRef Mendeley. Actions. Instant download Readable on all devices Own it forever Local sales tax included if applicable. .RIS Papers Reference Manager RefWorks Zotero.

.BIB BibTeX JabRef Mendeley. Cookies. Over 10 million scientific documents at your fingertips. © 2017 Springer International Publishing AG. Part of Springer Nature. Steve Friedl's Unixwiz. net Tech Tips. Deploying Mitel IP Phones in a VLANDHCP Environment. A customer recently purchased a Mitel phone system with IP phones, and though there was no VoIP external to our network, we still had to do a fair amount of work to get the phones to play well internally. Mitel had no resources at all for how to do this, so I'm memorializing this to help the next guy. It's likely that this will be somewhat applicable to other phone vendors. This is the paper that Mitel should have been giving their customers. Update (201507) : The customer's environment was a Mitel 5000 phone system (which supports both IP and digital phones), and one of the actual IP phones is model 5320.

Most IP phones are designed to use Power over Ethernet (PoE), which means that power is supplied by the network switch in the computer room rather than by a power brick plugged into the wall near the phone itself. This helps keep the user's desk a lot neater by eliminating one of the power sources. In addition, rather than require a separate network cable for the phone alongside the cable for the user's computer, most IP phones have a tiny built-in network switch that rides a single network cable to the computer room and supplies a network connection to the PC plugged in behind it. This saves the enterprise from an intrusive and potentially costly rewiring project. Surprisingly (to me, at least), the phones even support the notion of putting the phone on one VLAN and the PC behind it on another, allowing for a segregation of the network. Apparently this is a common feature. Selection Tip : the phones themselves don't need a speedy network connection, so Fast Ethernet (100 megabit) is plenty fast, but the device behind the phone might need more. But considering that GigE phones and the GigE switches they plug into are both substantially more expensive than FastE versions, it may well be that your office users can live with FastE to their desktop. Ours could. Our intention was to keep the office PCs on VLAN1 while putting the phones (and phone system) on VLAN4. This took some doing. Power over Ethernet Tips and Cautions. As noted, Power over Ethernet goes a long way to making the user's desktop area neater than it otherwise would be, as it largely avoids a power brick (aka "wall wart") among the other clutter. But there are lots of options here, including quite a few ways to make a mistake. PoE is not implemented by naively applying power to some unused pins on the RJ45 cable (as some have assumed).

Applying power to a device that wasn't prepared to accept it would be dangerous, so there's a fairly intricate protocol that the switch uses in order to make sure that it and the device on the other end can play ball. Don't ever be tempted to hack this together yourself. It's possible to use PoE injectors , which are small powered devices that take regular Ethernet in one side and provide 802.3af PoE on the other side but you still need one for each phone, this clutters a server room very quickly. It's so much neater to use a real PoE switch, though it does create a single point of failure. Caution: Cisco made a number of switches with a "pre standard" version of PoE that won't work with modern devices those shopping for used gear should pay attention here and look specifically for 802.3af standard support. Caution: Some models of switches have some PoE ports, but the rest non-powered, and some online vendors (CDW, for instance) make this very easy to miss. I initially spec'd a Cisco Catalyst 2960-24LT-L 24-port FastE switch but found that only the first 8 ports are PoE with the other 16 being regular, non-powered ports. Though this can be useful for applications requiring only a few powered ports, such as driving a handful of security cameras or wireless access points, it was not at all helpful for our officewide IP phone deployment and came as an unhappy surprise. Ordering the Cisco 2960-24PC-L got all 24 ports of FastE PoE. Networking Configuration. As one would expect, there are many ways to integrate these phones into a larger network, with the "easiest" being to configure them with a static IP on the same subnet as the rest of the network, as this avoids having to deal with DHCP or VLANs, but we really wanted to do it properly. Unfortunately, we found that Mitel had very few resources for us so we had to navigate this almost entirely on our own. Our network had two subnets of interest: 192.168.1.024 VLAN1 general office network 192.168.4.024 VLAN4 IP phone network (including the phone system) We used our internet firewall to route between the two subnets, though others may use a layer3 switch for this purpose. Though the phone traffic itself doesn't need to travel between the two networks, the phone-control application on the user's PC will need to talk to the phone system.

After creating the VLAN, insure that each switchport used for the phone is set to a tagged (aka trunked) interface, because untagged traffic will default to the switch's native VLAN (which for us is VLAN1). Instructions for Cisco devices look like: We're mostly a Windows shop so we used the Microsoft DHCP server on the domain controller for this purpose. This is not only convenient, but it provides tight integration with DNS (which we care about). These steps detail how to create a second DHCP scope as well as the DHCP options that support the phones: Define a second DHCP scope for the phones This is done in more or less the usual way we chose 192.168.4.024 with the networking options that matter for this scope (default gateway, DNS servers, etc). Define a Vendor Class for the Mitel phones. (Click to enlarge) Define the Mitel DHCP option DHCP option #43 is used for Mitel configuration, and this provides parameters to the phones by telling them where the phone system is, which VLAN they should use, and the like. What exactly goes into this string is the next item, this just creates the option that will contain it. (click to enlarge) Configure the actual Mitel option string The configuration string will vary for every instance, but there are common patterns and they are fairly well described in the Mitel documention. Note: though the Mitel docs suggest that the parameters can be provided independently by multiple separate DHCP options, this is apparently deprecated by the DHCP standard, so the proper solution is to put them in a single vendor option #43 that we defined in the previous step. Our magic Mitel string looks like: This string includes IP address of the phone system (once for the TFTP server that provides firmware and configuration, and again for the call control server), the VLAN the phone should be on (4), and a few other parameters that should be entered literally. Your IPs may vary.

Curiously, this option must be visible to both the main DHCP scope and the phone scope, we chose to enter this string into the global scope and not in each one. This allows us to insure that the option always presents itself the same way and that it's not a maintenance problem. Right-click "Server Options" and select "Configure Options. " Click the Advanced tab at the top Drop down the vendor class to select "Mitel IP Phone Options" Leave the User class alone Double-click the "Mitel Phone Config" option and enter your long magic string into the area provided Click OK to commit. At this point, the DHCP server should be prepared to offer the special Mitel options to any Mitel phone that asks for an address, no matter which subnet it asks on. There are a number of ways to configure DHCP, and we chose to configure our DHCP server (which is also our domain controller) with a separate network connection directly in VLAN#4 (with an IP address of 192.168.4.7) &mdash this allowed it to hear DHCP broadcasts directly on VLAN4 as well as allowing it to serve DNS and other requests directly without having to rely on the firewall to route to the main office subnet. But it's possible to configure a DHCP server with a single NIC to serve up requests for multiple subnets, including those it can't talk to directly, by the use of DHCP relay (sometimes known as a DHCP Helper or a UDP helper). This is configured in the firewallrouter by telling it: if you hear a DHCP request on this separate subnet, forward it to the main DHCP server at this IP, and add your remote subnet IP to the packet in the Relay Address slot. When the DHCP server gets the packet, it knows that it wasn't broadcast - it's coming from the inside address of the firewall - but it uses the DHCP relay address inside the packet to select a scope and send the reply. It's a clever system that I nevertheless couldn't get to work, and since I had a NIC to spare, probably won't revisit it. But other environments probably should. DHCP relay started to work when I insured that all phone switchports to be in trunk mode it's not clear why this needs to be, but it made the difference for DHCP relay mode. IP Phone Boot Sequence. These are the steps that the phones take to boot, and the fact that it requests a DHCP address twice was the final piece of the puzzle to allow us to understand this. It was very, very frustrating trying to figure this out. The phone wakes up with no knowledge of anything, including which VLAN it's on (or should be on), so it puts out a DHCP request via broadcast.

The switch hears the request as untagged (without a VLAN tag), so it sends the request to the switch's native VLAN , which is VLAN#1 (the office network). DHCP server hears broadcast request on the VLAN1 interface, allocates an address out of the 192.168.1.X pool. The response includes DHCP option 43 with the magic Mitel string. The phone gets the IP address on the office subnet (and is unaware of which VLAN it's on), but notices via the magic Mitel string that it's suppose to be on VLAN4. Therefore, it releases the IP address it just obtained, changes its VLAN membership to #4, and goes through the process again by putting out a second DHCP request on VLAN#4 . DHCP server hears the broadcast request on the VLAN4 interface and issues an address out of the 192.168.4.X pool. The response includes the same DHCP option 43 with the magic Mitel string. The phone gets an IP address on the VLAN4 subnet and inspects the magic Mitel options. Since the options are the same as last time, it figures that it's done setting up on the network so plants itself on VLAN4 with an 192.168.4.X address. Note: I'm just guessing on the phone's rationale for behaving this way, there are certainly finer points I'm not aware of. Using information in the magic Mitel string in DHCP option 43, it (ahem) phones home to the phone switch for continued configuration. The phone starts passing traffic from the PC device behind it: if it's untagged traffic, the switch sees the lack of a VLAN tag and puts it on the native VLAN 1. As far as we know, the only way to avoid the phone making two DHCP requests per boot is to configure it with a static IP directly on VLAN4, but we preferred the features of automatic provisioning from DHCP. This Tech Tips was created strictly to document on particular experience on one particular customer's network, but it seems likely that Mitel is not the only phone system that works this way. As we learn of other configurations that work in a similar way, we'll document them here. DHCP OPTION 43 for Lightweight Cisco Aironet Access Points Configuration Example. Download Options.

View with Adobe Reader on a variety of devices. View in various apps on iPhone, iPad, Android, Sony Reader, or Windows Phone. View on Kindle device or Kindle app on multiple devices. Introduction. This document describes how to use DHCP Option 43 and provides sample configurations for DHCP Option 43 for lightweight Cisco Aironet access points (LAPs) for these DHCP servers: Microsoft Windows 2008 Enterprise DHCP Server. Cisco IOS ® DHCP Server. Linux Internet Systems Consortium (ISC) DHCP Server. Cisco Network Registrar DHCP Server. Lucent QIP DHCP Server. When a Cisco Wireless Unified architecture is deployed, the LAPs can use a vendor-specific DHCP Option 43 to join specific Wireless LAN Controllers (WLCs) when the WLC is in a different subnet than the LAP. Refer to Wireless LAN Controller and Lightweight Access Point Basic Configuration Example and Lightweight AP (LAP) Registration to a Wireless LAN Controller (WLC) for information on how to configure an access point (AP) to join a WLC. Requirements. Cisco recommends that you have knowledge of these topics: Basic knowledge on Cisco Unified Wireles Network (CUWN) Basic knowledge of DHCP. This document is not restricted to specific software and hardware versions.

The information in this document was created from the devices in a specific lab environment. All of the devices used in this document started with a cleared (default) configuration. If your network is live, make sure that you understand the potential impact of any command. Background Information. Vendor Specific DHCP Options. RFC 2132 defines two DHCP Options that are relevant to vendor specific options. They are Option 60 and Option 43. DHCP Option 60 is the Vendor Class Identifier (VCI). The VCI is a text string that uniquely identifies a type of vendor device. This table lists the VCIs used by Cisco APs: Cisco Industrial Wireless 3700 Series. Cisco Aironet 1570 series.

1 Any 1500 Series AP that runs 4.1 software. 2 1500 OAP AP that runs 4.0 software. 3 1505 Model AP that runs 4.0 software. 4 1510 Model AP that runs 4.0 software. 5 Any 1500 Series AP that runs 3.2 software. 6 Any 27007001530 Series AP that runs 7.6.120.0 or later software. 7 Any 3700 Series AP that runs 7.6 or later software. 8 1540s running pre-FCS manufacturing code may use "Cisco AP c1560" Option 60 is included in the initial DHCP discover message that a DHCP client broadcasts in search of an IP address. Option 60 is used by DHCP clients (LAPs in this case) in order to identify itself to the DHCP server. If the access point is ordered with the Service Provider option (AIR-OPT60-DHCP selected), the VCI string for that access point is different than those listed previously. The VCI string includes the ServiceProvider option. For example, a 1260 with this option returns this VCI string: Cisco AP c1260-ServiceProvider . If the Cisco AP runs 7.0.116.0 or above (12.4 (23c) JA2 or above) and if a bootloader environmental variable (env_vars) named DHCP_OPTION_60 exists in flash, the value is appended to the VCI. If you order a Cisco AP with the Service Provider option, it will (by default) include the - ServiceProvider suffix however, you can include other values into DHCP_OPTION_60 as well.

In order to facilitate AP discovery of WLAN controllers that use DHCP Option 43, the DHCP server must be programmed in order to return one or more WLAN controller management interface IP addresses based on the VCI of the AP. In order to do this, program the DHCP server to recognize the VCI for each access point type, and then define the vendor specific information. On the DHCP server, the vendor specific information is mapped to VCI text strings. When the DHCP server sees a recognizable VCI in a DHCP discover from a DHCP client, it returns the mapped vendor specific information in its DHCP offer to the client as DHCP Option 43. On the DHCP server , option 43 is defined in each DHCP pool (Scope) that offers IP address to the LAPs. RFC 2132 defines that DHCP servers must return vendor specific information as DHCP Option 43. The RFC allows vendors to define encapsulated vendor-specific sub-option codes between 0 and 255. The sub-options are all included in the DHCP offer as type-length-value (TLV) blocks embedded within Option 43. The definition of the sub-option codes and their related message format is left to the vendors. When DHCP servers are programmed to offer WLAN Controller IP addresses as Option 43 for Cisco 1000 Series APs the sub-option TLV block is defined in this way: Length: - A count of the characters of the ASCII string in the Value field. Length must include the commas if there is more than one controller specified, but not a zero-terminator. Value: - A non-zero terminated ASCII string that is a comma-separated list of controllers. No spaces should be embedded in the list. When DHCP servers are programmed to offer WLAN Controller IP addresses as Option 43 for other Cisco Aironet LAPs, the sub-option TLV block is defined in this way: Length - Number of controller IP addresses * 4. Value - List of the WLC management interfaces, typically translated to hexadecimal values. The semantics of DHCP server configuration vary based on the DHCP server vendor. This document contains specific instructions on the Microsoft DHCP server, Cisco IOS DHCP server, Linux ISC DHCP Server, Cisco Network Registrar DHCP server, and Lucent QIP DHCP Server. For other DHCP server products, consult the vendor documentation for instructions on vendor specific options. Note : Use the Command Lookup Tool (registered customers only) in order to obtain more information on the commands used in this section.

Microsoft DHCP Server. This section describes the configurations necessary on the Microsoft DHCP server in order to use DHCP Option 43 for WLAN Controller discovery. Cisco 1000 Series APs. This section describes how a Windows 2008 DHCP server is configured in order to return vendor specific information to Cisco 1000 APs. You need to know this key information: Vendor Class Identifier (VCI) Option 43 sub-option code. Management IP address(es) of WLAN controller(s) The VCI for a Cisco 1000 Series AP is always Airespace. AP1200 . As stated, the Option 43 sub-option code for the Cisco 1000 Series APs is type 102 (0x66). Create a new vendor class in order to program the DHCP server to recognize the VCI Airespace. AP1200 .

In the Server Manager window, right-click the IPv4 icon, and choose Define Vendor Classes . Click Add in order to create the new class. Enter a value for the Display Name . In this example, Airespace is used as the Display Name. Also, add a short description of the vendor class in the Description field. Add the Vendor Class Identifier string. In order to do this, click the ASCII field and type in the appropriate value in this case Airespace. AP1200 . Click OK . The new class is created. Click Close . Add an entry for the WLAN controller sub-option in the Predefined Options for the newly created Vendor Class. This is where you define the sub-option code type and the data format that is used to deliver the vendor specific information to the APs. In order to create a Predefined Option, right click the IPv4 icon and choose Set Predefined Options .

A new window opens. Set the Option class to the value you configured for the vendor class. In this example, it is Airespace . Click OK in order to define the option code. The Option Type box appears. In the Name field, enter a descriptive string value, for example, Airespace IP provision . Choose Binary as the Data Type. In the Code field, enter the sub-option value 102 . Enter a Description, if desired. Click OK . The new Predefined Option appears.

Click OK . This completes the creation of the Vendor class and sub-option type needed in order to support controller discovery. Right-click the Server Options folder under the DHCP scope, and choose Configure Options . The Scope Options box appears. Click the Advanced tab. Choose the Vendor Class that you plan to use, in this case Airespace . Choose the predefined 102 sub-option to assign to this scope. In the Data Entry area, enter the controller management IP address(es) to return to the APs in the ASCII section. This is a comma delimited list. There is a period (.) in the initial empty Data Entry area. Make sure you remove this period from the list of IP addresses added in the data entry area. This is an example of the results.

Once you complete this step, the DHCP Option 43 is configured. This DHCP option is available for all the DHCP scopes that are configured in the DHCP server. So when the LAPs request for an IP address, the DHCP server sends the option 43 as well as to the LAPs. Other Cisco Lightweight Access Points. The method described in the previous section can be used if you have multiple device types on the same scope and you want them to receive different WLC IP addresses via Option 43. But, if all of the DHCP clients in the scope are Cisco IOS APs, you can use this procedure to define DHCP Option 43. Before you begin, you must know this information: Option 43 sub-option code. Management IP address(es) of WLAN controller(s) Complete these steps in order to define DHCP Option 43 on the Windows DHCP server: In the DHCP Server scope, right-click Server Options and choose Configure Options . On the General tab, scroll to Option 43 and check the 043 Vendor Specific Info check box. Enter the Option 43 sub-option in hex. Note : TLV values for the Option 43 suboption: Type + Length + Value. Type is always the suboption code 0xf1. Length is the number of controller management IP addresses times 4 in hex. Value is the IP address of the controller listed sequentially in hex. For example, suppose there are two controllers with management interface IP addresses, 192.168.10.5 and 192.168.10.20. The type is 0xf1.

The length is 2 * 4 = 8 = 0x08. The IP addresses translates to c0a80a05 (192.168.10.5) and c0a80a14 (192.168.10.20). When the string is assembled, it yields f108c0a80a05c0a80a14. The Cisco IOS command that is added to the DHCP scope is option 43 hex f108c0a80a05c0a80a14 . Once you complete this step, the DHCP Option 43 is configured and the DHCP server sends the option 43 to the LAPs. Cisco IOS DHCP Server. Cisco Aironet APs (Cisco IOS) Complete these steps in order to configure DHCP Option 43, in the embedded Cisco IOS DHCP server, for all Cisco Aironet APs that run Cisco IOS. This includes all APs except for the VxWorks 1000 Series (see the next section) and the 600 Series OEAP which does not use Option 43. Enter configuration mode at the Cisco IOS CLI. Create the DHCP pool, which includes the necessary parameters such as the default router and server name. This is an example DHCP scope: Add the Option 43 line with this syntax: The hexadecimal string in step 3 is assembled as a sequence of the TLV values for the Option 43 suboption: Type + Length + Value. Type is always the suboption code 0xf1. Length is the number of controller management IP addresses times 4 in hex. Value is the IP address of the controller listed sequentially in hex.

For example, suppose there are two controllers with management interface IP addresses, 192.168.10.5 and 192.168.10.20. The type is 0xf1. The length is 2 * 4 = 8 = 0x08. The IP addresses translate to c0a80a05 (192.168.10.5) and c0a80a14 (192.168.10.20). When the string is assembled, it yields f108c0a80a05c0a80a14. The Cisco IOS command that is added to the DHCP scope is: Cisco Aironet 1000 Series APs (VxWorks) (10101020103015051510) Series ONLY. Complete these steps in order to configure DHCP Option 43, in the embedded Cisco IOS DHCP server, for lightweight Cisco Aironet 1000 Series APs. This only applies to the 101010201030 model APs that run VxWorks, and not to APs that run IOS. Enter configuration mode at the Cisco IOS CLI. Create the DHCP pool, which includes the necessary parameters such as default router and server name. This is an example DHCP scope: Add the Option 43 line with this syntax: Note : T he quotation marks must be included. A sub-option value does not need to be defined in the Cisco IOS DHCP server for Cisco 1000 Series APs. For example, if you configure Option 43 for Cisco 1000 Series APs with the controller IP Management IP addresses 192.168.10.5 and 192.168.10.20, add this line to the DHCP pool in the Cisco IOS CLI: Note : You must use the management interface of the WLAN controller. This video describes how to configure DHCP Option 43 on Cisco IOS DHCP Server: DHCP Option 43 on Cisco IOS DHCP Server . Linux ISC DHCP Server. The information in this section describes how the Linux ISC server is configured in order to return vendor specific information to lightweight Cisco Aironet Series APs.

This example configures the Linux ISC server to return vendor specific information to the 1140, 1200, 1130 and 1240 Series Lightweight APs. This configuration can be modified and applied to other series of LAPs. Cisco Network Registrar DHCP Server. The Cisco Network Registrar DHCP server supports Vendor Specific attributes. However, the configuration of these attributes is not possible with the graphical interface. The CLI must be used. Complete these configuration steps in order to support L3-LWAPP Discovery with DHCP Option 43: Note : The CLI Command Tool can be found in the Network registrar directory: C:\Program Files\Network Registrar\BIN\ nrcmd. bat. Log into the DHCP server. Complete these steps: Create the Vendor Class Identifier for Cisco AP1000 Series APs: Create the Vendor Class Identifier for Cisco AP1200 Series APs: Note : For other models of LAP, replace the vendor-class-id parameter with the specific VCI string from Table 1. Associate the values that can be sent in the DHCP Offer by the server when it receives a request with Option 60 set to Airespace. AP1200 . The DHCP Option 43 can support multiple values in the same Option 43 field. These options need to be identified individually by a subtype. In this case, only one value is required, without any subtype.

However, the Cisco Network Registrar (CNR) configuration requires that you create a subtype option. However, in order to hide the subtype feature and send only a row string (BYTE_ARRAY) with the IP values, CNR supports specific flags in order to remove the subtype ids and length. These are no-suboption-opcode and no-suboption-len flags. Associate values based on the DHCP pools: In this example, the DHCP Pool named VLAN-52, which is already defined in CNR by the graphical interface, is configured with Option 43 10.150.1.15,10.150.50.15 when it receives a request from an Airespace. AP1200 device. Note : 31:30:2e:31:35:30:2e:31:2e:31:35:2c:31:30:2e:31:35:30:2e:35:30:2e:31:35:2c is the hexadecimal representation of the string 10.150.1.15,10.150.50.15 . Finally, save the DHCP configuration and reload. Refer to Managing Advanced DHCP Server Properties for more information on Vendor-Options configurations on a Cisco CNR DHCP server. Lucent QIP DHCP Server. This section provides a few tips for how to configure the Lucent QIP DHCP server in order to return vendor specific information to lightweight Cisco Aironet Series APs. Note :For complete information and the steps involved, refer to the documentation provided by the vendor. The DHCP Option 43 can contain any vendor specific information. The DHCP server passes this information in the form of a hex string to the clients that receive the DHCP offer.

On the Lucent QIP DHCP server, the vendor-specific information can be provided on the DHCP Option Template - Modify page. In the Active Options area, choose Vendor Specific Information , and enter the information in the Value field. In order to include the controller IP addresses in the DHCP option 43 message, enter the information to the DHCP Option template in QIP as a single hex value: ip hex . In order to send more than one IP address with DHCP Option 43, enter the information to the DHCP Option template in QIP as a single hex value: ip hex ip hex and not ip hex,ip hex . In this case, the comma in the middle causes problems for DHCP to parse the string passed from QIP. For example, suppose there are two controllers with management interface IP addresses, 192.168.10.5 and 192.168.10.20. The type is 0xf1. The length is 2 * 4 = 8 = 0x08. The IP addresses translate to c0a80a05 (192.168.10.5) and c0a80a14 (192.168.10.20). When the string is assembled, it yields f108c0a80a05c0a80a14. On the Lucent QIP DHCP server, the hex string that needs to be added to the DHCP scope is: The hex string must be given within square brackets. The square brackets are mandatory. Once the DHCP option 43 is modified to reflect this value, the LAPs are able to find and register with the controller. Use this section in order to verify your configuration. The Output Interpreter Tool (registered customers only) supports certain show commands. Use the Output Interpreter Tool in order to view an analysis of show command output.

If you use 1130 120012301240 Series LAPs, which have a console port, you can check that the WLC IP addresses are provided to the LAPs during DHCP IP address assignment. This is a sample output from a Cisco 1230 Series LAP: If you use a Cisco IOS DHCP server, enter the show ip dhcp binding command in order to view the list of the DHCP addresses assigned to DHCP clients. Here is an example: On the WLC CLI, you can enter the show ap summary command in order to verify that the APs registered with the WLC. Here is an example: If you have Wireless LANs configured, you can enter the show client summary command in order to see the clients that are registered with the WLC: Use this section in order to troubleshoot your configuration. The Output Interpreter Tool (registered customers only) supports certain show commands. Use the Output Interpreter Tool in order to view an analysis of show command output. Enter the debug dhcp message enable command on the WLC in order to view the sequence of events that occur between the DHCP server and client. Here is an example: This is the debug lwapp packet enable command output from the WLC that indicates that DHCP option 43 is used as the discovery method in order to discover WLC IP addresses: The value of the IE 58 parameter indicates the discovery type. For DCHP Option 43 it is 3. If you use the Cisco IOS DHCP server on the router, you can enter the debug dhcp detail command and the debug ip dhcp server events command in order to view the DHCP client and server activity. Here is an example from the debug ip dhcp server events command: Enter the show ip dhcp binding command in order to view the list of the DHCP addresses assigned to DHCP clients. Binary Options: Scam or Opportunity?

We’re recently getting more and more contracts for coding binary option strategies. Which gives us a slightly bad conscience , since those options are widely understood as a scheme to separate naive traders from their money. And their brokers make indeed no good impression at first look. Some are regulated in Cyprus under a fake address, others are not regulated at all. They spread fabricated stories about huge profits with robots or EAs. They are said to manipulate their price curves for preventing you from winning. And if you still do, some refuse to pay out , and eventually disappear without a trace (but with your money). That’s the stories you hear about binary options brokers. Are binary options nothing but scam? Or do they offer a hidden opportunity that even their brokers are often not aware of? Binary options, in their most common form, are very different to real options. They are a bet that the price of an asset will rise or fall within a given time frame. If you win the bet, the broker pays your stake multiplied with a win payout factor in the 75%..95% range. If you lose, you pay the stake minus a possible loss payout .

You’re trading not against the market, but against the broker. The broker needs you to lose, otherwise he would not make any profit. Even if he really pays out your wins, and even if he does not manipulate the price curve, he can still control your profit with his payout factors. So it seems that even if you had a winning system, the broker would just reduce the payout for making sure that you lose in the long run. However this conclusion is a fallacy. It can in fact be of advantage for the broker to offer a payout that allows you to win, as long as most other traders still lose. A broker has not the freedom of arbitrarily reducing the payout. He’s competing with other brokers. But why would you want to trade binary options anyway, when you also can trade serious instruments instead? If you wanted a binary outcome, you can also achieve this by opening a Put or Call Spread with real options – and this with a serious broker, much higher payout factors (even more than 100%) and the possibility to sell the options prematurely. But aside from tax advantages in some countries, there is one single compelling reason that might make a binary options trading experiment worthwhile. Profit and trading cost of a binary option are independent of the time frame.

So you can trade on very short time frames, which would be difficult, if not impossible with real options or other financial instruments. You can find a discussion of this problem in the Scalping article. Binary scalping math. The required minimum win rate for binary trading can be calculated from the broker’s win and loss payout: W = required win rate for break even. With 85% win payout and no loss payout, you need a win rate of. 54% win rate seem to be manageable on short time frames. The transaction costs of a non-binary, conventional broker would require a much higher win rate, as in the following graph from the Scalping article: Required win rate in percent vs. trade duration (non binary) You had to win almost 80% of five-minutes trades – impossible for a trading system under normal conditions unless you enforce that win rate with some tricks, which however won’t help getting in the profit zone. So, smaller trading costs on low time frames are the obvious benefit of trading binary options. With all the side benefits of low time frames, such as more data for backtests, and shorter drawdown periods in live trading. But how can we take advantage of that? There are three problems to solve. Three steps to potential binary profit.

Find a method with a win r ate that is better than the W determined with the above payout formula. But be aware that prices on small time frames are strongly feed dependent. Normally you won’t know your binary broker’s price source (if he has any at all). For being on the safe side, test with different historical price data from different serious brokers (f. i. Oanda or FXCM) and stay some percent points above the minimum W . All those issues make trading binary options sort of “messy”. However it’s the messy methods that sometimes offer the best opportunities. Ed Thorp made his first millions not with ‘serious trading’, but with a Blackjack method and with a method to estimate the value of warrants, both also considered messy and hard to calculate at that time. A price curve is no random walk. At least not all of the time. Long time frames are often dominated by trend, short time frames by mean reversion. When transaction costs do not matter, it’s not very hard to find a system with > 54% win rate on 5-minutes bars. Here’s a simple example that exploits the mean reversion tendency of short time frames (script for Zorro): In the C code above we defined an individual objective() function that optimizes the system for binary trading. It measures the system performance as the number of winning trades divided by the number of losing trades. Otherwise the optimizer would hunt for the most robust profit factor, which makes no sense for binary trading.

The setup establishes a 5 minutes bar period, which is the time frame of our bets. We use 20 WFO cycles and let the optimizer use all CPU cores but one. This way the training run takes about 5-10 minutes for 5 years data. The BINARY flag activates binary trades, and we’re simulating a broker with 85% win payout and no loss payout. We have a mean reverting system that trades whenever the current price is closer than a threshold – here, 1% of recent volatility – to its previous High or Low. The time period for determining the High and Low is the only system parameter that we optimize. You could improve the system in many ways, for instance by optimizing also the threshold, by modifying the objective() function so that it prefers systems with more trades, and by applying a filter that prevents trading in non mean-reverting market regimes. Since we bet on the price in 5 minutes, we’ve set the LifeTime of a trade to one bar. Here’s the equity curve from a 5 years walk forward test with EURUSD: The system has about 56% win rate and a notable, although not spectacular positive return. Which is not achieved by the crude mean reversion mechanism, but mostly by amplifying the small entry-exit price differences through binary trading, even though the payout is only 85%. You won’t get a similar result with conventional trades. The same system not trading binary options, but leveraged forex positions produces a very different equity curve (for testing, comment out the BINARY flag and the Payout settings in the code): With the same trades we have now only 40% win rate and an overall loss, since all the trade profit is eaten up by spread and commission.

How do you let your script automatically enter a bet at the right moment? This is a technical issue unrelated to trading, but it comes up whenever you have a broker with a web based platform and no proper connection for automatizing. Here’s a code snippet for detecting the positions of Buy and Sell buttons on a website, and automated clicking them: Start the script, and wait until the broker’s website pops up in your browser. Then follow the instructions in Zorro’s message window. Manoever the mouse onto the “Buy” button and hit the right mouse key. Then do the same with the “Sell” button. The script will store the button positions and then use the keys function to send test clicks to both positions of the active window. For testing purposes I’ve imitated a typical binary broker’s trading platform. You now only need to glue together your trading script with the button clicking script, and adapt the latter to the website of your broker. This is left as an exercise to the reader. And better use improved versions – the scripts here are kept simple for demonstration purposes. As long as the script trades, make sure that the browser window stays in the foreground, or else it can not click on the buttons. For the position size, either enter a fixed size for all positions, or let your script click into the size field and send key strokes to set individual sizes.

Of course I don’t want to recommend a particular binary options broker. In the end, they’re all crooks – but some are crookier than others. Finding a suited broker is, also, left as an exercise to the reader. Binary broker comparison websites are often – surprise, surprise – installed and paid by binary brokers. US citizens are normally not allowed to trade binary options with brokers that are not regulated in the US. Some brokers will accept your deposit nevertheless, but use that as pretext to refuse payout. If you’re a citizen of Israel, you might not be accepted by many binary brokers since they’re not allowed to fraud compatriots. It’s often the “messy” and despised trade instruments that can still provide opportunities when they are correctly understood. I’ve uploaded the two scripts to the 2016 repository. You’ll need Zorro 1.52 or above for running them. When you now make huge profits with binary options, don’t forget where the money comes from: Not from the broker, but from his less fortunate customers that maybe just haven’t read the right blog.

Addendum: From all articles on this blog, this one attracted by far the most spam comments. From them it appears that a new lucrative business has established in the orbit of binary brokers: recovery fraud . As soon as you’ve lost your money, you’ll receive offers by “hackers” or “law firms” to recover it, for a fee of course. Where did they get your address from? Naturally from the very broker that bagged your money… 71 thoughts on &ldquoBinary Options: Scam or Opportunity?&rdquo Thank you for this article. Would you happen to know of any software out there, or a model, that cap produce a binary risk curve over time? Similar to the risk graphs created by traditional options software? I found one on Wolfram but I can’t change the security prices. It would be very helpful for me to understand binary prices over time and volatility levels.

I don’t know such a software for binary options, but you could probably calculate the graph with the standard Black-Scholes algorithm, just as for a normal European option. The question is only what you would do with this information, since you can normally not sell a binary option during its lifetime. I have an account at Nadex and you can buy and sell them (close out a position). So I would be helpful for me to mode out the possible prices over time. I bought your book recently and really liked it. Lots of great ideas for trading algos. I’m glad I understand some German. Here a question regarding your article: I’m a complete newbie to binaries, so please forgive my ignorance. You say that the trading cost does almost not depend on the the time frame. Obviously, when you put on a lot of trades in a short time, the expected profit is usually small, so it can easily get eaten up by commissions. As far as I understand, the payout of a binary is fixed, so it is always the same whether your trades last 1sec or 1000secs, which makes it in some sense time-independent.

However, (and this is where I’m a bit green still), binaries have a fixed expiry date, so our profits are in some sense bound to the time to expiry and get smaller the closer our trade entry get to it. On the other hand, the closer we get to expiry, our probability of reaching a certain target price increases as the path divergence from spot to expiry gets smaller. So, in my naive understanding, the algo you presented above should only work optimal for a given time in the day that is n periods away from expiry. I’m probably wrong but I would like to hear your opinion of why this is not the case. PS, I think it should be fairly easy to model binary options with Monte Carlo rather than Black Scholes, as it is easy to put all sorts of constraints in it. I’ve done this with Barrier Options, it’s slower but quite effective. Do you intend on translating your book, or I’ll have to buy the e-book and them Google translate it? =) @ Jeremy, Tom: I had not heard of Nadex before, but they indeed allow to exit an option before it expires. This article was only about the usual options with a fixed duration and costs independent of duration, but exiting options opens new interesting possibilities. A risk graph makes then a lot of sense. Maybe that could be the topic of another article. – @ Gonzatti: Yes, I’ll translate it when I find the time. Informative and entertaining as ever. Many thanks.

Jeremy, Tom – thanks re Nadex. Interesting. hi, very interesting article, me too have an account at Nadex. and they have a very good and and informative site with huge amount of info. could u check their platform and how we can use this platform with Zorro app. with best regards. From what I see, Nadex seems not to provide a direct connection. So you would need a script like above under “Step 2” or some similar solution for controlling their trade platform. Thank You for this informative contribution. The expiration time of the option may no doubt also be an interesting parameter to look at, although it is very broker specific what it can be set at. I have been trying to exploit this additional parameter, since in zorro there is the possibility of adjusting the ExitTime from the BarPeriod to some other value (I inserted after “LossPayout = 0” simply ExitTime = 15 for instance). Surprisingly, if I do so with the above script the test result is always the same which can certainly not be correct. Why does this fail?

Because your ExitTime is overridden by the LifeTime setting. You can use either ExitTime or LifeTime for the duration of a trade, but the recommended method is LifeTime. – You can find those issues by looking in the logfile. There you can see how long the trades last and which profit they make. great article, in my experience the binary options is good, but requires an method and some education, i have some profits, I apply martin gala system 🙂 Kisses. Seems that LifeTime param. is not actually documented in zorro manual page at least I couldn’t find it. Would like to know the difference between ExitTime vs LifeTime. GoMarkets has binary options on their MT4 platform, trading from your normal account. I think there are a few other’s out there too. Yes. Some brokers provide binary options through the FX LITE MT4 plugin. You can then trade directly with Zorro through the MT4 bridge and need no button click function.

Only the time frame of the bet must be set up – as far as I know – in the order comment field. What about position sizing? Probably via lot size, but I found no detailed documentation. I’ll inquire with the developer of the FX LITE tool. Ok, according to the developer this is the MQL4 command to bet on a rising price with FX LITE: and the corresponding Zorro code: “Size” is the position size in units of the broker’s minimum size, like 1$. “BO Exp:” sets the duration in seconds. If you want to change the position size on the broker’s web interface, it’s just as with clicking the buttons: let the script click into the size field and then send key strokes for setting the size. Great & interesting example Johann – thanks for sharing. How does Zorro evaluate the binary option success? From the code, the ‘set(BINARY)’ is used to automagically evaluate the success of the prediction. In my own simulations of the same algorithm (EURUSD, last 5 years, 5min periods), the win rate is about 60% if the mean of the next period is used to determine success – but 52% if the close of the next period is used (more noisy) Also, some binary options brokers (like IG Index) quote a threshold price which is their prediction of where the market price will be in 5 mins.

Our algorithm needs to determine whether the market price is likely to be higherlower than the broker’s own estimate on expiry (not the market price when the bet is placed). This is hard. The close is used by Zorro. The mean would be wrong since it’s no real price. However 5-minutes data is highly feed dependent, and you will likely get different results with different brokers. Zorro uses FXCM price data by default, but it’s better when you backtest with price data from the very broker you trade with. It’s interesting how many variants of price bets are offered by binary brokers meanwhile. Using a predicted threshold would effectively prevent an algorithmic system since you can not backtest it. Here is a complete list with all scam brokers. Maybe you can add it to your article: howwetrade. combinary-options-scams I get this message: Error in ‘line 27: ‘SET_ORDERTEXT’ undeclared identifier. “Undeclared identifier” means that your software does not understand what you’re typing. Either your version is too old or you did not type it right.

This blog is not really a good place for programming support, but the user forum is. There you can also get the newest version. I completely agree that binary options are easier to trade. Thanks for the interesting article. I found binary. com has an API trading interface. Maybe we can expect Zorro will have ability to trade binaries ? A rare pearl in the sea of binary option articles! I also like a lot the general approach to trading you and the community of Zorro have. Kudos to you! I’m quite new to Zorro, so I think my question will have a simple answer. I tried to change the line: and got a suspiciously higher winning percentage.

As I think this is not because of a real improvement of the method performance, what is the reason for that? Is there a way to place a (binary) trade – talking about training and testing mode – before all other trades expires? Thank you and congrats again! Thanks for the quick reply. I played around further with the script, and noticed an important fact to be taken into account in Zorro when simulating binary options strategies. When selecting a LifeTime much higher than 1 bar, and allowing placing positions when other positions are already open, you will notice that something odd is going on. You may get incredible (but unfortunately wrong…) results, that being due to the fact that by default Zorro closes a trade when another trade on the opposite direction is placed, assigning it a win or a loss depending on the situation at the moment (thus without taking into account the expiry time fixed by LifeTime). I think this is a “bug”, in the sense that Zorro should not behave like that when the the BINARY flag is set. I ‘solved’ the problem setting Hedge to 2, which allows to enter and open long and short positions simultaneously. Maybe this setting of Hedge to 2 should be executed automatically by the program when the BINARY flag is set, in order to avoid wrong simulation outcomes. I posted this info into the Zorro forum as well… Yes. When more than one trade can be open, Hedge must be set to prevent closing a position by opening opposite ones. Otherwise you could prematurely exit from your bet and book the profit! – This is not automatic, so the consequence of any setting must be carefully considered for emulating binary trading. I have some real experience with autotrading binary options.

I built an interface for Newstrading. I used Forex News Gun and rent a server in New York, which put me in the position of executing a trade within 1ms once fundamental indicators are published. It’s an unbeatable system if you take your time to study how the market reacts to the data. I had 80+% winning rate and with the optimal risk (Kelly Formula!) I should be a millionaire by now! However, once brokers realize what’s going on, they block you out with error messages. I would highly recommend to learn how to apply fundamental analysis and how to trade manually instead of spending any energy on binary options because of my own experience. I spent like 2000€ for server rent, deposits I never got back (beware – 24option takes 80 units every month from you account if you don’t trade several month. StockPair does this as well), Winautomation Pro, and a custom coded method (was one of the customers JCL spoke about – it is possible to beat 57% winning ratio but it’s really hard with technical analysis only! I don’t think it’s possible to beat break even really significantly, so forget about getting rich quick). However, I managed to build a somewhat stable autotrading interface with Winautomation. If you are interested, I’m willing to share my code, but it will need adaptions for your broker. Nice article, I will play with this code the next time I’m bored. I’m sdh309795gaas in the Zorro forum.

Would anyone be interested in working together on some of this stuff? I’ve written an nodeJS API for iqoption, along with a backtester that allows the algorithm to be dropped right into the API without any modification, but I’m still trying to figure out the price prediction part. This method gets about 55-57% accuracy when I tested it with the data from iq option. But when you factor in the changing profit rates and everything, there’s just not a whole lot of trades left. @TeeraLucksanapiruk Where you able to connect zorro with iq option through your API? If that is the case I am interested. how can I get the script or apply the auto robot to trade for me with a good broker like binary. com ? Please guys – I work at the sharp end of the financial industry - these can best be likened to a roulette wheel with a slower time to burn than through your chips. Unless there has been some new market news the price fluctuations cannot be predicted on a five minute interval. Some of the finest on Wall Street make only 75% profitable decisions. The have access to non-public research, 20 years experience, teams of analysts using supercomputers crunching millions of transactions, financial capital (billions) and brokers that work for them.

Thankfully they only need to be right on very specific transactions. You don’t give money to Nigerian scammers, why let someone take your money on binary options. I had $5000US dollars deducted from my visa to Optionbot 3.0. But I have not heard back from the company or from my broker who had promised me that by investing I would make a very good profit. Unfortunately I only received 1 call from my broker who set up some sort of auto trade and was told specifically not to touch it, which of course I haven’t. The problem is that now I lost all my money and I cannot reach them either. I am writing this post because one broker named John, from such called: Optionbot 3.0 called me on 25 June of 2016 and forced me to open an account on their website optionbot. net promissing me that Optionbot will make 100% PROFIT of my deposits. I transferred that day 10 000 Euro by Credit Card. The broker took over my account and started trading. After half an hour, the margin level was under threat and I received a call and broker started to ask for more money. I sent another 5 000 Euro from my Credit Card! On 30 June, he opened 11 wrong positions with a huge loss and I woke up with all my money lost. I instantly called my broker and this criminal which burned all my money said that he will refund all my positions and I will succed to withdrawal all my money. I waited for few hours and tryied to call John, and he never asked. Days passed away, I was trying and trying to call him, to write to his email, but without answers.

I want to catch this broker which robbed my money, and made hundred of trades on my behalf without my consent and to punish him for every EUR that he lost, to punish him piece with piece just to understand how hard is to make money. I still hope that I will find justice one day, but for you guys, PLEASE, DO NOT EVER REGISTER OR CHARGE THIS SHITNESS SITE: OPTIONBOT 3.0. Binary options are great financial product but there is a lot of greedy brokers and firms . They stealing money from innocent people through robots, auto-traders and signal services.. All these systems are usually created by unregulated binary options brokers.. On this site you can find many scam systems: binaryoptionsradar. com I wished I have read this article before I parted with my 250US dollars with BDB. Scammers really were able to convince me by calling me long distance from Cyprus. i think he’s trying to scam a lot of people, he made it very good and authentic. This is such a great post in which Binary Options scam is describe in a better way. I am seeking this type of blog from so many days but today i am glad to find this blog. I have been trading binary options with this script on livedemo accounts since Dec. on auto pilot with two brokers. It seems on some days it works really well and on other days it’s the opposite. The end result is, it’s struggling to break even.

Love to work with someone to improve this. Let me know if you guys are interested. It’s all good and well to say that you are succeeding as a trader when your account balance is rising and trades seem to be going well. But I’m wondering if anyone here has managed to withdraw any actual cash from binary trading accounts? Things were going really well for me and I believed I had found a quick path to success when I started trading and winning. But, when I needed to liquidize my funds, it was impossible. Has anyone been successful in getting money out? I have been contacted by a legal team who has informed me that the binary company I invested with will not ever give me my money unless I open a case against them, so I am thinking of doing this. Does anyone have any experience advise about this? Comments like this appear here every second day, and usually end up in the spam folder since they look like bait for advertising “legal teams” or “hackers” to “get money back” from a binary broker. So let me draw this comment out of the spam and answer it: If your binary broker refuses to pay out, the first problem is that you normally do not know their real address, not even their country. So the chance to get your money back from a Cyprus mailbox is zero. But in the orbit of fraudulent brokers, a whole industry of “legal teams” or “hackers” have established that promise retrieving your money for a fee. You’re then not only losing your investment, you’re losing that fee as well.

Sometimes the “legal team” or the “hacker” is the broker himself when they smell that their client has still some money left. At least that’s what I’ve heard about those services. What I so far never heard is that someone really retrieved money from a fraudulent binary broker. Hi JCL I was wondering if you or someone could explain me how to modify the objective() function so it prefers systems with more trades as you suggested. I have been searching a way to do this in the zorro manual but I haven´t found anything yet. The objective function is supposed to return a value that is a proxy for performance. The higher, the better. So you could just subtract a “penalty term” for not enough trades, like this: var PF = ((var)(NumWinLong+NumWinShort))(NumLossLong+NumLossShort) var Penalty = 1.(NumWinLong+NumWinShort+NumLossLong+NumLossShort) return PF – Penalty This is just a quick & dirty example, there might be better methods. Let’s have a discussion some time with regards to. binary options along with what we could do to. ensure that it is more effective for everyone. Thanks for the whole write up. Looking forward to getting more information on you manage everything regarding money management, legal issues and other things to get things fancy and manageable. Binary options is really not for all.

It always bears a lot of risks. This kind of information will help the enthusiasts escaping the bad things. Regards. Thanks for a fascinating article. Regarding trading costs on short term binary systems…mission doesn’t factor in however can you comment if slippage affects the results of this system? I came up with an automated binary options system that trades 650 timesday and backtests in MultiCharts at a 76% win rate (39.5% payout) — which “on paper” is profitable. However slippage brings the real world results down to roughly 70%, making it a marginal loser. Is this the same with your system? In binary trading, slippage largely depends on the honesty of the broker. Since they are usually market makers, it is no problem for them to generate artificial slippage for reducing the win rate.

So it may be worth the effort to test the slippage and compare it with different brokers. In serious trading, slippage has a smaller effect on the win rate since asymmetric slippage is illegal under most regulations. Would this system benefit from applying your MMI as a filter? Not really, since it’s using mean reversion. MMI can detect trend regimes, but makes no difference between mean reversion and pure randomness. Hi jcl…ahhhh sorry I missed that part in the MMI article where you said just that. Sorry about that. Ok, just as a follow up though, let’s assume as you imply that there are 3 modes, trending, mean reverting and random. Obviously the mean reversion system is not going to perform well in a trending market or in a random market…however if your MMI eliminates trades during trending periods, would that not at least be partly helpful in filtering out some of the losing trades? If not, do you know of a method to differentiate a mean reverting mode? ADX is supposed to be effective, however I’ve never had much luck with it in actual system testing. Last question…is your book available in English? Love your blog!

Yes, there are other methods to detect the market regime, often used is the Hurst exponent. I have already on my to do list a series of experiments to find out which detection method works best under which circumstances. FrankyB….pretty sure the only legal way to trade binaries in the US is with Nadex. It’s an SEC regulated exchange though so totally safe unlike most other binary brokers. I’m pretty sure there you’re trading against other market participants rather than against any broker. Glad to find somebody who takes a realistic approach to binary options trading. I believe that profiable strategies can be automated, but they are not available in the public domain. Because when you have a profitable method, you trade it and make money, you don’t share it with everyone, especially not for free. Unfortunately there are hundreds of scam systems (see warnings at thebestbinaryoptionsbrokers. netcategorybinary-options-scam-2) that try to make people believe the contrary. And I see a lot of people fall into these traps, they still believe that somebody will make them money for free. One more thing to mention is that most binary options platforms has an affiliate program so you cant really find a honest review.

Most of the reviews are made to generate revenue and has interest. If you need some assistance in recovering you money lost in binary options there is this company here that will help you get your money back. Advertising link removed Almost died at the end of the article: “If you’re a citizen of Israel, you might not be accepted by many binary brokers since they’re not allowed to fraud compatriots. ” Cool overview. At the end of the day, Binary Options, FRO (Fast Return Options) all derive from various interpretations of the B&S formula and are indeed financial instruments. Sophistication is the basic element of fraud and if you look into HFT there’re a lot of questions and I remember a movie with Haim Bodek talking about weird weird stuff. jcl…does this system enter on the open of a bar or intra-bar if the price hits your pre-defined level? jcl…I’m wondering if I could get your opinion on something. Do you think it is possible, using data mining, that someone could discover reliable repeating patterns in a data series generated by a cryptographically secure pseudorandom number generator that is programmed to behave like a real market? Not talking about cracking it or finding the seed, just patterns that repeat leading to higher or lower prices over a specified timeframe. Or is this a hopeless endeavour?

Examples would be: OR more significantly: If it is a random number generator, then it has per definitionem no reliable repeating patterns. Otherwise it would be a bad programmed random number generator. I guess the reason I asked is that binary. com says about these indices: “These markets are simulated markets that use randomly generated numbers to reflect the way that a real market behaves” So I would think they must have some deterministic algorithm that makes the numbers a little less than random. For instance, volatility in these “fake” markets seems to exhibit mean reverting tendencies similar to the way it does in real markets. I wonder if that is by accident or design? There are many ways to simulate a market, the simplest is using real market data. So I don’t know for what purpose binary. com uses a random number generator, and in which way it is programmed. Since it is a binary broker, I would assume that it is programmed to maximize the user’s losses. This means the generated index depends on how many users bet on rising and how many on falling. Since this info is known only to the broker, you can not use it to your advantage. Hello everyone, I’m looking to get into trading in this way but would like to read jcl’s book first.

Could someone help me out with a link?