Fuzzy Logic

AAA

DEFINITION of 'Fuzzy Logic'

A mathematical logic that attempts to solve problems by assigning values to an imprecise spectrum of data in order to arrive at the most accurate conclusion possible. Fuzzy logic is designed to solve problems in the same way that humans do: by considering all available information and making the best possible decision given the input.

INVESTOPEDIA EXPLAINS 'Fuzzy Logic'

Fuzzy logic is often applied by advanced trading models/systems that are designed to react to changing markets. The goal of this type of system is to analyze thousands of securities in real time and to present the trader with the best available opportunity.

RELATED TERMS
  1. Program Trading

    Computerized trading used primarily by institutional investors ...
  2. Black Box Model

    A computer program into which users enter information and the ...
  3. Algorithmic Trading

    A trading system that utilizes very advanced mathematical models ...
  4. Financial Modeling

    The process by which a firm constructs a financial representation ...
  5. Neural Network

    A series of algorithms that attempt to identify underlying relationships ...
  6. Formula Investing

    A method of investing that rigidly follows a prescribed theory ...
Related Articles
  1. How To Survive The Trading Game
    Active Trading

    How To Survive The Trading Game

  2. Basics Of Trading Systems
    Trading Systems & Software

    Basics Of Trading Systems

  3. Trading Systems Coding
    Trading Systems & Software

    Trading Systems Coding

  4. Neural Networks: Forecasting Profits
    Trading Systems & Software

    Neural Networks: Forecasting Profits

comments powered by Disqus
Hot Definitions
  1. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  2. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  3. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  4. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  5. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  6. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
Trading Center