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. Financial Modeling

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

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

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

    A set of rules for accomplishing a task in a certain number of ...
  5. Institutional Investor

    A non-bank person or organization that trades securities in large ...
  6. Technical Analysis

    A method of evaluating securities by analyzing statistics generated ...
Related Articles
  1. Active Trading

    How To Survive The Trading Game

  2. Trading Systems & Software

    Basics Of Trading Systems

  3. Trading Systems & Software

    Trading Systems Coding

  4. Trading Systems & Software

    Neural Networks: Forecasting Profits

Hot Definitions
  1. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  2. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  3. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  4. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  5. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center