For a long time people have tried to develop a “Forex black box” trading system in which a computer program tells you which trade to make and how much to invest. Many companies have tried to make such systems by implementing generic algorithms and methods. They were supposed to be the ultimate forex trading systems. In this type of method the system predicts which investment is profitable and plans a strategy for you. Some have even tried to use artificial intelligence with accumulated knowledge.
The infamous systems that can do so are called forex black box traders. People who had very less knowledge about the forex market or wanted to invest that very little amount in the shares preferred consulting the forex back box trading systems. A forex black box trader develops a sample model by analyzing the patters of trading for a long time and implements these models as a strategy. The trader then implements this online by trading on real shares and tracking the ups and downs in the share. So when an abruption occurs the investor will profit a lot from his investments. Of course every one wants this and would rely on a computer program because a computer program does not make a mistake in choosing the right one based on it input it gets.
A forex black box trading system consists of three types of models: Fully disclosed, Gray, Undisclosed. Fully disclosed model reveals all the technical indicators and all other aspects of the trading system so the investors will surely come to know the trading strategy behind the trade. Gray box model only discloses some of the indicators that initiated the trade and masks the rest of the model. But in the undisclosed model nothing is revealed. The logic behind the trade is masked so the investor who trades using such a model either has low money in the trade or has a lot of confidence on the model.
