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Binary options?(!) I mean of course you can't trade that on institutional level, neither on big scale, but pretty sure a 80% direction accuracy is enough to actually make money with binaries.
I dunno, 30 sec binaries used to be a quite cheap retail thing, if my memory serves me correct. Though I haven't had any look into binaries in over 5 years...
Sounds hellish.
Correct you will have to use this in a market making algo to quote better more like skimming of the top a bit better 
Most of the prediction might be within spread. It is good for someone like citadel securities
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