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PRIVATE BLACKBOX TRADING system to be built by CBTechlive Inc.
Added: (Thu Mar 23 2006)
Columbia City, IN USA (PRESSBOX.CO.UK) March 24, 2006 -- Sounds a bit like some sort of black ops project, but it relates to how some futures and option traders are day trading the markets. Some of these blackbox systems are offered to the public which are comprised of a combination of tested algorithms or formulas attempting to predict future price movement in popular indexes such as E-Minis futures, stocks or OEX.
However, this BlackBox project under construction by CBTechlive Inc. is not based on finding the �one� algorithm which predicts future price movement but to create a system which manages hundreds if not thousands of comparisons of all possible factors which might affect price change including underlying securities, news, technical, neural, algorithms (or anything) which can be expressed mathematically and correlated to price movement. The overall premise is there is no one system which is always better than others. Also that the markets are dynamic, interrelated and evolving, requiring the need to be constantly back-tested and correlated in real time. Such massive data crunching is impossible for any one individual to execute by himself even with a fast computer, this solution requires groups of servers and high speed connections to raw data inflows from exchanges all over the world. All to gain a few minutes -- an edge.
�I studied this concept as far back as the 1970�s when the solution would have required expensive mini computers to handle the task, since then time got away from me� said Michael Whelchel, IT director for CBTechlive Inc.�.
This announcement also had a surprise twist, the final system would not be available for sale, lease or accessible by non members. Why would any company invest money to create a product which would never be marketed?
�Simple�, commented Michael, �If such a system worked with acceptable risks then why would anyone market it to other traders�? Trading stocks, options or futures requires a buyer and seller for each transaction. If too orders is on the buy side, prices are pushed higher or worse the sell side pulls away. Without both sides, trading is not possible.
Do other private BlackBox systems exist? �Of course they do�, � but their existence is a closely guarded secret by those who made them� stated Michael. Most of the successful models do not attempt to find any one factor to determine price movement, most attempt to process very large amounts of information faster than anyone else.
�In this game, the early bird gets the worm, even a few minutes can mean profit or loss.�
Will this BlackBox project work? Unfortunately, once it is created and tested it�s existence will remain a secret only to it�s members. We will never know. What we do know is that as technology advances with improved programming languages and faster processors investors will do whatever it takes to improve the odds of winning, even team up!
CBTechlive Inc., in the past has been leaders working with state of the art mobile satellite systems and real time software for live online auctions, working with eBayLive Auctions and live auctioneers.