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. Algorithm

    A set of rules for accomplishing a task in a certain number of ...
  2. Program Trading

    Computerized trading used primarily by institutional investors ...
  3. Formula Investing

    A method of investing that rigidly follows a prescribed theory ...
  4. Technical Analysis

    A method of evaluating securities by analyzing statistics generated ...
  5. Black Box Model

    A computer program into which users enter information and the ...
  6. Institutional Investor

    A non-bank person or organization that trades securities in large ...
Related Articles
  1. Active Trading

    How To Survive The Trading Game

    Gain insight into how a trader/programmer approaches the task of designing a trading system.
  2. Trading Systems & Software

    Trading Systems Coding

    Automate your trades by translating your strategy into a language your computer can implement in this hands-free approach to investing.
  3. Trading Systems & Software

    Basics Of Trading Systems

    A trading system can save time and take the emotion out of trading, but adopting one takes skill and resources - learn more here.
  4. Trading Systems & Software

    Neural Networks: Forecasting Profits

    Take a look at the algorithmic approach to technical trading - you may never go back!
  5. Stock Analysis

    A Trader's Look at the S&P 500

    Moving averages are sending an important signal, and it's probably not what you think.
  6. Chart Advisor

    Is Now the Time to Invest in North America?

    Bullish chart patterns across the North American markets suggest that now might actually be a wise time to allocate closer to home.
  7. Chart Advisor

    These Oil Service Stocks Are Ready For A Move Higher

    In the oil services sector, active traders have been trying hard to establish a floor and the double bottom pattern that is appearing on the chart suggests that a short-term reversal could be ...
  8. Trading Strategies

    The Top Five Stocks For Novice Swing Traders

    New to Swing Trading? Here are the top five stocks recommended for swing trading.
  9. Chart Advisor

    These ETFs are Breaking Out of Chart Patterns Now

    Three buys and one sell; here are four ETFs breaking out of chart patterns right now.
  10. Trading Strategies

    Capitalize On Collars To Enhance Your Trades

    Trade collaring measures current technicals and makes swift adjustments to account for environmental changes.

You May Also Like

Hot Definitions
  1. Fiat Money

    Currency that a government has declared to be legal tender, but is not backed by a physical commodity. The value of fiat ...
  2. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  3. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
  4. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
  5. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
  6. Market Value

    The price an asset would fetch in the marketplace. Market value is also commonly used to refer to the market capitalization ...
Trading Center