Black Box Stocks Review
- Ease of use
- Quality
- Value
4
Summary
Black Box Stocks is an online trading system that alerts traders to potential opportunities in the stock market. This stock platform uses algorithms to track stocks and options experiencing high trading volume and unusual volatility. Black Box Stocks also offers chat rooms where traders can share ideas and discuss current market conditions. Learn everything you need to know about this stock platform by reading our complete Black Box Stocks review.
Pros
- Multiple stock alerts for premarket and intraday setups
- Volatility indicator showing bullish/bearish activity
- Includes 7 custom technical studies
- Unusual options order flow feed
- Mutiple chat rooms led by professional traders
Cons
- Expensive
- Limited layout options
- Limited brokerage compatibility
Black Box Stocks is an online trading system that alerts traders to potential opportunities in the stock market. The platform uses algorithms to track stocks and options experiencing high trading volume and unusual volatility. Black Box Stocks also offers chat rooms where traders can share ideas and discuss current market conditions.
Can this trading system help you find profitable trading opportunities? Our Black Box Stocks review will cover everything this platform has to offer.
Black Box Stocks Pricing Options
Black Box Stocks costs $99.97 per month or $959 per year. The platform offers a 30-day trial for $1.
Black Box Stocks Features
Stock Alerts
Alerts are at the heart of Black Box Stocks. These are not buy or sell signals, but rather notifications that are generated in response to high trading volume, high volatility, or other noteworthy events.
There are several types of stock alerts within Black Box Stocks. During market hours, common alerts include unusual volume alerts, price spike alerts, and retracement alerts. Unusual volume alerts are triggered when a stock meets a volume threshold while the price is trending upward. Price spike alerts occur when the price of a stock jumps upward in a short period of time. Retracement alerts occur when a stock moves sharply upward in premarket, then retraces back to the previous day’s close.
All of these alerts include volume, price, and time thresholds that are calculated dynamically using a series of proprietary algorithms. So, they’re more nuanced than the results a trader might get simply by running a stock scan.
Black Box Stocks alerts are particularly useful for traders who monitor premarket activity. A premarket alert is triggered when a stock is experiencing unusually high volume during premarket trading. The platform also has a “usual suspect” alert, which calls traders’ attention to stocks that have a recent history of repeated, large intraday price gains.
Alerts are displayed in a running feed and are color-coded by type. Traders can customize which alerts they see by alert type, stock exchange, or stock price. A typical trading day involves between 25 and 50 alerts across all stocks that Black Box Stocks monitors.
Volatility Indicator
Alerts are meant to be a starting point for further analysis rather than standalone trading signals. One of the key features that Black Box Stocks provides for digging deeper into trading opportunities is a proprietary volatility indicator.
This indicator ranges from –50 to 50, with positive numbers indicating that demand for a stock outstrips supply and negative numbers indicating that there are excess shares of a stock for sale. The purpose of the volatility indicator is to indicate in real-time whether trading activity around a stock is bullish or bearish.
Charting Tools
Black Box Stocks offers a small charting window that enables traders to see the price at which a stock alert was triggered and the price action for that stock throughout the day. The charting interface offers several dozen popular technical studies as well as 7 custom studies created by Black Box Stocks.
These custom studies indicate dark pool volume, options dollar flow, and breakouts from a stock’s price range within the first 15-30 minutes after market open. When paired with stock alerts and the volatility indicator, these custom studies can provide further indication that a stock’s price is about to surge.
Still, the charts within Black Box Stocks aren’t very customizable. The charting interface remains basic compared to software like TradingView, and traders cannot create their own indicators in Black Box Stocks.
Options Alerts
Black Box Stocks also monitors stock options and issues alerts for options experiencing unusual order flow. Alerts are issued when a large order exceeds open interest and is filled at the ask, when multiple large trades in the same contract happen in quick succession, and when there are repeated sweeps for a contract while the price of the contract is increasing.
In addition to these alerts, Black Box Stocks tracks all unusual options order flow in a real-time feed. The feed isn’t nearly as customizable as what you would get with a dedicated options order flow platform like Unusual Whales or Optionsonar. However, it offers much of the same data about large orders, and you can drill down into unusual order flow for specific ticker symbols.
Black Box Stocks also tracks historical options order flow and displays the ticker symbols with the most bullish and bearish options order volume each day. This options data is another piece of information that traders can use when evaluating stocks that trigger alerts within Black Box Stocks.
Chat Rooms
Black Box Stocks offers a series of chat rooms that traders can join to discuss open trades or alerts, ask questions about the Black Box Stocks system, and more. During each trading day, there are at least a few different chat rooms moderated by professional traders. These chat rooms are fairly active and include an audio feed for traders who want to keep an eye on their primary trading platform.
Black Box Stocks also offers webinars for new traders every Monday, Wednesday, and Friday. These are each about an hour long and run through the basics of how to use the Black Box Stocks system.
Black Box Stocks Customization and Layout
Black Box Stocks is laid out so that traders can see their entire stock or options alert feed as well as a chart and chat room, all in the same window. This layout works well for keeping an eye on new alerts and quickly exploring them, but there’s no way to customize the size of the different windows. While this isn’t a huge deal, it does make it somewhat difficult to focus on one thing or to add a lot of detail to the charts within Black Box Stocks.
Compatible Brokerages
Black Box Stocks supports trading through TradeStation and E*TRADE. Traders can enter orders directly from Black Box Stocks as well as monitor open positions.
Black Box Stocks Platform Differentiators
Black Box Stocks is a somewhat unique trading system. The algorithms behind this platform dynamically monitor volume and price movements to issue alerts, making the alerts more actionable than the results of a typical stock scan.
At the same time, traders aren’t left to trust the algorithms blindly. Rather, you can take the stock and options alerts generated by Black Box Stocks and use the platform’s other tools – including the volatility indicator, options order flow data, and custom technical studies – to evaluate whether there is a potentially profitable trading opportunity.
The chat rooms within Black Box Stocks are also quite valuable since you can follow professional traders who are seeing the same alerts as you each trading day. So, you can learn how they interpret and follow up on alerts and how they decide what setups to trade.
What Type of Trader is Black Box Stocks Best For?
Black Box Stocks is best for active day traders who want to use an algorithmic trading system to find more trading opportunities. Traders who find that they spend too much time sifting through candidate setups when using a stock scanner might prefer Black Box Stocks, which uses dynamic alerts to highlight more actionable setups. Traders using Black Box Stocks still need to be very self-directed since the alerts are meant only as starting points for further analysis.
