BlackBox Flow Training Part 1
BlackBox Flow Training (Part 1)
WELCOME ABOARD RETAIL TRADERS
Those who find success are the ones willing to put some effort into preparing and learning this platform before jumping into its use. Please make sure you understand the platform before trying to use it to place trades. Misunderstandings cost money.
This is a group of likeminded retail traders that really do treat each other like family. You found a group of traders dedicated to helping others learn, grow, and succeed.
We have options scalpers, day traders, swing traders, and those who do more long-term investing, so whatever your style is, there is something here for you to learn from and participate in.
There are members with $500 accounts and $5,000,000 accounts. Yet, there are no egos here.
WHAT IS BLACKBOX STOCKS?
BlackBox is an option scanner. There is a text chat room voice chat room, we have a room for thinkorswim scripts. If you’re on thinkorswim, we have a room where some of our members who know how to code can post different scripts for you there. We do a lot of aftermarket activity; we do a lot of chats that are on random topics. We have after-hours discussions groups. We have dark pool data that is live. We have a Twitter account that sends you real-time alerts from the scanner. If you’re not able to watch it throughout the entire market, we have educational resources in our Discord room.
Blackbox isn’t creating trade information, it is simply reporting trades other people have placed.
So, what exactly are we scanning? Blackbox Stocks is an information platform that uses proprietary algorithms to find the trades that the so called “smart money” is making. The algorithms watch the exchanges, and report back all of the trades that meet certain criteria. This criterion might be dollar amount, position size, a time frame requirement, etc. As trades that meet this criterion are filled by the exchanges, Blackbox Stocks instantaneously displays the information on our screens.
If I’m just some random person on the internet saying hey, I just bought five contracts of Apple. No one really cares. It’s not going to do anything if someone comes in and buys six thousand contracts of Apple that might be significant. That’s something that we want to see, and the scanner is actually following the smart money which has the ability to make those six thousand ten thousand two thousand contract trades. So that’s really what we’re scanning for.
When someone comes in and places a 3000 contract order we kind of assume that they might know what’s going on because you’re not going to put $462,200.00 into a trade that you’re just kind of randomly going this should work. So, when we see these big trades, we’re assuming that they either have a research team or they’re confident in the direction or whatever. The case is smart money.
The scanner is actually picking up all these trades in the marketplace and if it meets the Algos criteria, it puts it up on our scanner for us as these trades are filled by The Exchange there on our screen. It is real time information. So, one thing I want to point out is that black box isn’t creating any kind of trade information.
What we are watching scroll across our screen throughout the day, is called options flow. We are watching this flow to get an idea of what the smart money thinks of certain tickers. Just because a big trade was placed, does not mean it will be profitable. We are evaluating this flow to find the options trades that have a higher probability of being profitable.
JUST HOW FAST IS THIS SCANNER?
Blackbox Stocks is tied into the exchanges. The information comes across the Blackbox scanner, literally, as it hits the exchanges. If you spend time in our chat room, you’ll often hear Charlie say that we have the information on our screen, before the trader even sees the trade confirmation in their account.
This shows options trades hitting the scanner within the first second of the day. If you look at the first trade, it shows a timestamp of 6:30:00. (I’m in California, so that is 9:30 EST). Before even one second goes by after the bell, the scanner is already displaying trades that are being placed. That whole screen is ONE SECOND into the bell.
REAL TIME DATA
Blackbox Stocks pays for real time data. It’s expensive. Really expensive. That’s why most of the competition doesn’t provide it. Some other providers will show you the correct timestamp of the flow, but it doesn’t come across your screen until 20 minutes later. This 20-minute delay allows them to get the information for free. However, sometimes we are in and out of the trade before that 20 minutes even goes by.
That’s the first advantage that BlackBox has. There is no delay between these orders being executed and it’s showing on our scanner. Time is money! Don’t trade on delayed data.