Black Box Model

What Does Black Box Model Mean?
A computer program into which users enter information and the system utilizes pre-programmed logic to return output to the user.

Investopedia explains Black Box Model
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.