Black Box Stocks Review 2019
When you open a ‘black box,’ all of the unknowns start to make sense.
For Blackboxstocks, it claims it can provide the same revelations about the equity market.
Combining proprietary trading algorithms with advanced artificial intelligence, this trading software service uses some of the same technologies perfected by high frequency traders (HFTs) on Wall Street.
But is the technology legit?
In this Blackbox stocks review, we’ll break down all the company has to offer and let you know if its subscription plans are worth the price of admission.
What is Blackboxstocks?
Blackboxstocks is a software provider that combines proprietary algorithms and artificial intelligence to exploit inefficiencies in the equity and options markets.
Founded in 2011 by Partner Eric Pharis, the company locates its data servers directly near the NYSE, NASDAQ and OTC exchanges to avoid trading latency.
When running the software, the platform combines predictive technology with advanced artificial intelligence to help discover unusual market behavior and increasing volatility.
Its institutional grade analytics plug-ins help subscribers uncover unknown market trends and alert users of potentially large price swings.
For subscribers, Blackboxstocks provides an easy-to-apply dashboard that includes real-time alerts, stocks scans, news feeds, as well as a fully interactive chart and social medial platform.
The community app also allows users can exchange information, discuss strategy and communicate efficiently through its common network.
Blackboxstocks offers subscription plans to its proprietary technology as well as educational webinars to help enhance user experience.
Let’s see what they have to offer.
Plans | Costs | Pricing
With two options to choose from, Blackboxstocks offers monthly and annual subscription plans that include full access to all of the software’s features.
The two cost structures look like this:
- $99.97 a month
- $959 per year ($240.64 in savings)
And what’s included in your subscription?
- A pre-market scanner to help uncover unusual behavior before the market opens
- A post-market scanner to help make sense of the day’s action
- A Stocktwits feed where you can gain insight from other advanced traders
- Access to Blackboxstocks proprietary volatility indicator
- Lists of market movers, advancers and decliners
- Real-time quotes from over 13,000 stocks
- Real-time institutional grade charting library with advanced technical analysis tools
- Symbol specific news feed so you’re up-to-date on all material company information
- Access to Blackboxstocks proprietary algorithmic-driven alert log
- A volume ratio scanner that uncovers stocks prime for explosive gains
- Access to the member’s only chat room
As you can see, Blackboxstocks has a lot to offer.
But how does its technology actually work?
Well, what separates Black box trading software from other competitors is its algorithms automatically post alerts to let you know when an explosive opportunity is taking place.
More importantly, the alerts are in real-time. With its servers located so close to the exchanges – you’re always first to know.
See it all start pre-market.
Before trading begins, Blackbox’s scanner scours pre-market activity to uncover the most active stocks and options.
Next, it analyzes volume and sentiment behavior to decipher which stocks are prime for the largest breakouts.
Once an alert hits the wire, the platform also provides detailed information as to why a stock received an alert and what triggered the algorithms attention in the first place.
Made up of high-speed servers that monitor over 13,000 stocks in real-time, Blackboxstock’s algorithms can analyze each stock tick multiple times per second.
Similar to the technology used by high frequency traders (HFTs), Blackboxstocks’ system helps level the playing field by providing you with the same technology as those used by large financial firms, hedge funds and Wall Street’s elite.
But Blackboxstocks doesn’t stop and just stocks.
With Blackboxstocks options scanner, you can follow the ‘smart money’ and gain insight into what institutional investors are thinking.
You can also:
- View streaming real-time options news and company upgrades/downgrades
- Monitor daily changes in open interest (OI)
- View real-time options flow and historical data that’s color coded for simplicity
Now, when it comes to options trading, open interest is extremely important. It tells you the amount of option contracts that are yet to be exercised and thus, still available for trading.
And why does this matter?
Because increased trading activity leads to supply and demand imbalances; which in turn, moves option prices.
With Blackboxstocks option software, you’ll know exactly when activity is picking up and the best way to exploit it.
With its community platform, there are also plenty of benefits there as well.
Like other forms of social media, the Blackboxstocks mobile app allows you to watch traders live, discuss trading ideas and discuss strategy.
You can also use the fully integrated social media features to follow, direct message and subscribe to other members channels.
You can also:
- Follow members and stocks that are trending within the community
- Post trade recommendations and confirmations as well as provide useful content to engage the community
Another additional benefit is access to Blackboxstocks’ member’s only TD Ameritrade commission rates.
As its preferred trading platform – thinkorswim – the offer combines both reputable service and lower costs.
So now the important question.
Is Blackboxstocks worth it?
To answer, it really depends on the size of your trading account.
Unfortunately, Blackboxstocks does not offer a free trial for any of its technology.
So at nearly $1,000 a year, you need to book enough winning trades to justify the subscription costs. For those with large bankrolls, the outflow is rather small.
If you trade in the $10,000 range, you can breakeven with a single 10% gain.
A second issue is volatility.
Blackboxstocks’ strategies look to exploit explosive stocks that are prime for breakouts; however, most of these issues have low share prices and low float.
Check out the list explosive gains below
The large price swings are a function of small-cap stocks with a low supply of shares outstanding.
While these offer the best opportunities for extensive profits, make sure you’re comfortable with the large price swings.
From our perspective, we’re mixed on Blackboxstocks.
Without a free trial, it’s hard to truly gauge the validity of Blackboxstocks’ technology.
However, if you’re interested in giving the platform a try, we recommend enrolling in the $99.97 a month option.
This way, you can test out the service for a reasonable time period without locking in a long-term contract.
Second, it offers you the opportunity to cancel anytime if the algorithms don’t perform as promised.
Moreover, a month will provide plenty of time to gauge if the product is right for you. And with a one-time cost $99.97, you won’t break the bank in the process.
Blackbox Bootcamp Class
Included free of charge for all Blackboxstocks subscribers, the Blackbox Bootcamp Class is a 3-hour introduction to stocks, options and the Blackbox system. The course is designed to help take your trading skills from the basement to the penthouse.
During the first phase, you learn:
- Basic market terminology
- What is “short selling” and what are the risks?
- The dangers of trading penny stocks and low float stocks
- How to use technical analysis – charts, candles and more
- How to identify support and resistance levels
Then you move on to options trading:
- What are calls and puts?
- How to read an option chain
- How to choose strike prices and settlement dates
- How to use directional option strategies
- Best account options for small investors
In the final phase, you dive deep into its proprietary Blackbox System:
- How Blackbox alert systems work – pre-market, volume, price spike, rapid decline, etc.
- How Blackbox proprietary scanners, data tables and charting programs work
- How Blackbox media features work – real-time news, symbol specific news, social media sentiment
- How the Blackbox trading community works – live trading rooms, moderators as well as how to connect, interact and contribute
As an additional bonus, it’s great that Blackboxstocks offers education in combination with its data analysis and algorithmic trading tools.
As mentioned, if you’re interested in giving it a try, signing up for the boot camp is a great add-on to help increase your skills in the process.
Free Trial | Promo Code
Unfortunately, Blackboxstocks does not offer a free trial for either of its subscriptions.
From our point of view, it’s important to allow prospective customers to validate a service before requiring a full purchase; hopefully – in the future – the company will change its stance on this matter.
As another feature, Blackboxstocks does offer plenty of free trading resources through its Blackboxstocks Blog.
There you can read investor articles such as Options Heat Maps, Options Dollar Flow as well as Bullish Flow and Bearish Flow.
- Founded: 2011
- Educators: Eric Pharis
- Number of members: Not listed
- Company Address check: 5430 LBJ Fwy, Suite 1485, Dallas, Texas 75240
- Free trial: No
- Free resources: Blackboxstocks Blog, Blackboxstocks Twitter, Blackboxstocks Facebook, Blackboxstocks YouTube
- Coupons: Save $240.64 with an annual subscription vs. a monthly subscription
- Money back guarantees: No
- Price level: $99.97 a month to $959 (annually)
- Transparency: Average
- Verified income statements: No
Who is Black Box Stocks Best For?
Whatever your skill level, Blackboxstocks can help improve your trading game.
By combining algorithmic trading with advanced artificial intelligence, Blackboxstocks’ technology removes emotion from the equation and allows its indicators to focus solely on the data.
For new traders, this approach can be quite beneficial as you try to figure out what’s happening in the overall market.
For advanced traders, it can also provide immense benefits.
Like having two sets of eyes on one computer screen, you can combine Blackboxstocks’ algorithmic features with your own in-depth trading knowledge to help create a profitable balance between advanced statistics and intuition.
However, since Blackboxstocks does not offer any free trial, you should consider taking a look at some competitors like Trade Ideas and VectorVest first before making your final decision.
Blackboxstocks Review Summary
Free Resources | Free Trial
Ease of Use
With positives and negatives on both sides, we’re on the fence when it comes to Blackboxstocks.
Without a doubt, the company offers advanced data tools and algorithmic features that are necessary for any trader to succeed in the market.
Speed is at the forefront of trading success and with its advanced technology, Blackboxstocks’ algorithm can scalp valuable information much more quickly than any human.
On the other hand, the company does not offer a free trial for its service.
When gauging the validity of any technology, a company should allow customers to test out the product before requiring a full purchase.
By not doing so, Blackboxstocks’ misses the mark here.
All in all, if you are interested in giving it a try, our advice is stick with a $99.97 monthly subscription.
With it, you can test out all of the software’s features and know if it truly adds value before making a full commitment.
As well, all subscriptions include free access to the Blackbox Bootcamp Class.
This 3-hour online webinar provides plenty of useful advice on stock trading, options trading and how to best use its proprietary Blackbox System.
Alternatively, go for the free services Trades Ideas provides first and compare both services.
The chances are that you are better served with Trade Ideas Pro since their strategies and algorithms are not a black box at all.