Black Box Systems

ITS stands for Intermarket Trading System, I believe companies who are market makers can get licensed with ITS. I may be off-base on this as I am currently trying to understand the different ways to view the market in real time and recieve data.
 
I get the data from SLK, since my interface works through redi plus. But I think you can get data almost anywhere. Dont' know why it's such a problem???
 
The term Black Box for trading systems is a sealed / undisclosed system. You would have to just listen for the beeps and groans of your puter . You would have no clue why its taking trades. I know that there is a trading system called Black Box and the developer most likely named it that as an ironic twist.
 
Hi. In that case, I don't have a black box trading system. In my case, I can look up exactly why a stock was bought or sold, very nice feature for perfecting the algorithm!
 
Black Box comes from the Engineering realm. It means
testing by applying external criteria but you have no idea
of the inner workings of the device under test.

Whitebox means that you have an understanding of the device
under test can can apply both external stimulus and internal
alterations to the device under test.

These terms have now been borrowed by trading computer
systems to describe their operation Blackbox means you have
no idea why the computer spits out a signal to buy/sell.
Whitebox implies that you can alter the internal operation of
the program (e.g. script alteration) and have a very good idea
of what the program is doing when it spits out buy/sell signals.

- Greg
 
If you write it yourself or contribute the algorithms to the programmer, it's a white box. If you buy someone else's system, without explanation of the algorithms, it's a black box (and you've probably been taken).

I'm a programmer and a trader. If someone wants to contribute a winning trading algorithm (that I'm not already working on), I'll be glad to write/implement a system to trade it in exchange for being able to use it, as long as the relevant markets are liquid enough to support both of us, and you don't want to sell it to anyone else afterwards.
 
I thought about selling the white box software, but traders can plug in their own algorithms. You can record data during the data, run a simulator on the program after the closel, test your algorithms, and then put them to work.
 
We have traders using several of both (Black and White) box "systems" ..with mixed results. The only consistent winner has numerous traders monitoring the trading all day long. Many of the basic "if-thens" can be programmed, and may even work at times...but we are still doubtful that a full AI system will come along for a while (if ever).

As an aside, however, many algorithmic alert tools have shown promise (without the Acitve-X or other execution action).

Good Luck in your endeavor.
 
Don has it right, the best trading system is between your ears. If
you have a API (Black Box/White Box) trading system , it still has to be monitored, tweaked and maintained. The best API systems we have seen have taken arbitrage techniques and strategies and automated them . Most Neural Networks(Artificial Intelligence) and computer software that is sold as a "Black Boxs" on the net, may not work in real-time as often touted in
advertising. If a true "Black Box" (undisclosed)system worked in all markets, I'm sure it wouldn't be for sale.



Gene Weissman
Lieber & Weissman Sec., L.L.C.
gweissman@stocktrade.net
 
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