Any references that cover the prons and cons of white-box trading system development?
Trading system development with white-boxes
- Thread starter trader3cnd
- Start date
OP,
Black Box = fully auto
White Box = manual/point & click
Grey Box = combo between black/white
I think you are looking for a filter system or stock scanner that will give you a list stocks to manually enter, unless you didn't mean White Box?
What are you trying to do?
Why even post unless you have something productive to offer?
Black Box = fully auto
White Box = manual/point & click
Grey Box = combo between black/white
I think you are looking for a filter system or stock scanner that will give you a list stocks to manually enter, unless you didn't mean White Box?
What are you trying to do?
Quote from Sisko7:
I think this is why ET is so interesting.
Here we have a person asking a question he does not understand. He does not understand the question. How is he going to understand the answer.
Maybe he is just screwing with the rest of us. Maybe this thread is a joke.
Why even post unless you have something productive to offer?
I'm not sure what you mean here, maybe you could explain it better. If you are looking for software to help you trade or develop trading systems there are some excellent choices
For stocks
Free chart pattern scanner
http://www.finviz.com/
Program your own scan rules
http://www.worden.com/legacy/Products/TeleChart/TeleChartGold.aspx?
Programs that discover trading systems and write code for you
For price action only (OHLC patterns)
http://www.tradingpatterns.com/
More general program based on Genetic Programming that includes indicators (It went for 60K last time I checked, kinda expensive):
http://www.tradingsystemlab.com/
Please have a look at the following threads, they may help you:
http://www.elitetrader.com/vb/showthread.php?s=&threadid=104393
http://www.elitetrader.com/vb/showthread.php?s=&threadid=108534
http://www.elitetrader.com/vb/showthread.php?s=&threadid=104393
http://www.elitetrader.com/vb/showthread.php?s=&threadid=108534
The first program is one of the most valuable tools I have ever used. You can get a good indication about the short term or even intraday market direction from this program but, beware, it is uselees if you do not have a good understanding of probability and statistics. In that case I do not recommended it. The second program is just amazing from what I have read but I have not used it and it was just too expensive when I checked a couple of years ago.
That's not the way I understand it.
The colors refer to the level of disclosure when it comes to the logic/rules for a trading system that generates signals to buy/sell and short/cover:
Black - completely proprietary, no disclosure of any logic
Grey - partially proprietary, some disclosure of logic
White - full disclosure of all logic
The level of automation, IMHO, from full to none is separate from the trading system.
I agree but a more useful classification is as follows:
inner workings - output
black - black : black (1)
black - white : grey (2)
white - white: white (3)
With (2) you can check the historical performance of the output but you do not know how it was generated.
With (3) you can check the performance and also know how it was generated.
There are no commercial class (3) systems, for obvious reasons. APS Automatic Pattern Search and TSL Trading System Lab are class (2) systems. Traders avoid class (1) systems because of fear of hidden over-optimization. Also, class (3) systems lose any edge fast for obvious reasons especially when developed in a company by a team or their development was outsourced.
Did not realise the so many ways of describing the following: "Black Box, White Box and Grey Box". Thanks to you all for the same.
So, how would you apply the same to trading systems?
So, how would you apply the same to trading systems?