For a relatively small subset of stock symbols I have been able to build a model that is able to 20-100 times per day consistently predict whether a stock is going up within the next 2 minutes, being correct 75% of the time. I have worked both academically and professionally with data science, and dare say I am using proper methodologies, i.e. not testing the model on training data, keeping in mind that I'm working with time series, etc. So for argument's sake, let's assume that this performance would translate into production.
But if I was to go trade stocks directly based on this model in real life, e.g. through Interactive Brokers, the commissions and bid-ask-spread would more than eat the profits.
As an example, let's say that the typical spread for "SymbolA" is 10 cents, and ignore commissions for now. My model might be able to tell with 75% accuracy whether the stock will move by more than 5 cents within the next 2 minutes. But the model doesn't maintain its accuracy if it is to predict the same for movements of 10 cents, for instance.
So for now this is a roadblock for monetizing this. Therefore my question is: How can I monetize this ability?
E.g. Is there any way of gearing these movements without gearing the spread too, so to say?
From searching, I've stumbled upon (60-second) Binary Options, but I can't figure out of these also incorporate the underlying asset's spread (and commission), by setting the bar for a "win" relatively high? But on the surface it does seem that they forego spreads and commission, by rather paying out just \$0.7 on a win and -\$1 on a loss. So seemingly I could be profitable using these (E[75% * \$0.7 - 25% * \$1.0] = $0.275)
But maybe I'm misunderstanding how binary options work.
Any input would be appreciated - thanks!