In the arena of active trading, a wide range of participants strives to sustain profitability and achieve specific objectives. Whether one is trading equities, futures or currencies, competitors from around the globe implement nearly infinite strategies on a daily basis. One such approach to the marketplace is known as black-box trading.
Black-box trading is a rules-based, fully automated method of engaging the financial markets. The term “black-box” alludes to the proprietary nature of the system or strategy that governs functionality. Black-box trading applications are also referred to as “quant,” “automated” or “algorithmic” systems. In addition, they often employ big data analytics and play an integral role in many disciplines including high-frequency trading (HFT).
The logic of how the trading system operates is hidden from the trader, the trader does not need to know how it works, they just start the robot and let it do its work.
As technology has evolved, black-box systems have come online to the masses. No longer must one be a large institutional participant to become a practitioner, as individual retail traders also have numerous options readily at their disposal.
Retail traders are also joining the ranks of black-box practitioners. Pre-made systems are readily available online for purchase or lease, with many priced affordably. In addition, software trading platforms offer custom programming options for automated system development.
Regardless of the size or resources of a firm or individual, integrating a black-box trading system into operations is no longer a monumental task.
Neptune Black-Box Trading System
We offer a basic black-box trading strategy for the cTrader trading platform, you can download a trial here.