White-box Model

White-box Model – A model whose inner workings are transparent and interpretable (e.g. linear equations or clear rule sets). In algorithmic trading, white-box systems use simple, well-understood logic (like a linear combination of indicators or explicit rules) so a user can easily see why each trade is taken. As in ML, white-box models allow traders to trace how inputs produce outputs. Forex cBots often combine white-box components (e.g. fixed moving-average crossovers) with more complex modules; using white-box models ensures some part of the system remains explainable and auditable.

⬅ Robots Glossary