Black Box Model
A computer program into which users enter information and the system utilizes pre-programmed logic to return output to the user.
Investopedia Says:
The "black box" portion of the system contains formulas and calculations that the user does not see nor need to know to use the system. Black box systems are often used to determine optimal trading practices. These systems generate many different types of data including buy and sell signals. Related Terms:
Altman Z-Score
Black Scholes Model
Dynamic Link Library - DLL
Financial Modeling
Formula Investing
Heath-Jarrow-Morton (HJM) Model
Intelligent ETF
Model Risk
Monte Carlo Simulation |