Is this a feasible approach to trading binary options?

This is likey to be a stupid question, but I'm going to go ahead and ask it anyway... When trading Boundary (in/out) binary options, could you just calculate a confidence interval >50% for the time frame in question and use this as the range? That way, you'd have a statistical edge and should, in theory, end up profitable after a series of trades.

I'm guessing that this is not a possible approach, as it's seems too simple to work, so why would it fail? I don't really understand how binary options work, and I had never heard of boundary binary options before 5 minutes ago, so please give your answers in reasonable detail.

Alternatively, price seems to often stagnate before large releases, so could you not take advantage of situations such as this using boundary binary options?

Thanks in advance.

The binary brokers calculate prices on their options based on the statistics. If you use the same calculations, you will just see that you cannot purchase an option with desired parameters at a desired price (because of the broker's margin added to the prices). To win in options, you need to have some edge that is above the statistics (insider information or similar).

So what you're saying is that binary options are pretty much useless as a means of trading?

Binary Option is a casino game where broker is the dealer ...

Correct.

and,..just like the Casino, they don't take kindly to those who figure out the weakness in their edge and use it against them.

Come that time, you will experience far more complex hurdles and challenges than just predicting price direction.

Ferru and Leebos on the money responses.

As a former institutional FX options trader, I can tell you that the only real long term edge in options trading belongs to institutional traders in general and to market makers specifically.

Price takers (like retail traders) with seemingly good rates of success will have that run cut short soon enough. Spot FX is the only (relatively) transparent market there is.

Sorry guys!

Hey don't get me wrong, you can make money at. I have and still do daily, But...
If I get greedy, or don't throw a couple of deliberate losers in there regularly, then they will hit me with every dirty trick in the book, from blocked IP address to fills that are so far off the screen quote (or any true market price) that you know you are being told to back off.

For me, it's good entertainment while I'm waiting on a spot market move, and a steady income bonus if I don't take advantage.

A bit like my past relationships with casinos to be honest. They're there to make money, not to give it away to smart arses, so it pays to act reckless sometimes.
Makes them think you're just having a lucky run.