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Fuzzy Logic in trading strategies

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by , 11-18-2017 at 08:38 PM (918 Views)
      
   
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Traders often wonder how to improve a trading system or create a new one through machine learning. Despite the abundance of publications, a simple and intuitive method is yet to be found for creating models that cannot be analytically estimated without resorting to computer-aided calculations. Fuzzy logic is a window to the world of machine learning. Combined with genetic algorithms, it is able to expand the capabilities of creating self-learning or easily optimizable trading systems. At the same time, fuzzy logic is intuitive, as it encapsulates crisp numerical information in fuzzy (blurred) terms, just like a person does in the process of thinking.
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