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Cab,
I didn't finish answering all your questions.
Fuzzy decision making is rather simple, but it sounds complicated to
describe. There was an excellent article in the magazine AI Expert (now
defunct) that gave a great example of selecting a city to live in based on
factors of quality of life issues and job availability. These factors go on
a fuzzy scale. Thus you take the city in question and fuzzify (similar to
scoring) the various factors. You then combine the factors and defuzzify
the results to get a composite result. Examining the results appear "more
rational" than just adding up all the sub-factors.
I use a similar technique to evaluate trading system results. If I value a
win % > 60% and low drawdown ratio plus some other stuff, then I can
rank different systems based upon my own criteria. Other traders may value
other factors
and would come up with a different ranking.
I hope this helps .... Marlowe
An excellent book on the topic is "Fuzzy Systems Handbook" by Earle Cox. It
has a lot of example code if you want to write your own code. There is also
a FL newsgroup.
----- Original Message -----
From: Cab Vinton <cvinton@xxxxxxxxxxx>
To: L_Omega <omega-list@xxxxxxxxxx>
Sent: Friday, February 04, 2000 7:28 AM
Subject: RE: Rocket Science
> > FL is a tool that has merit in the decision making as well as control
> > systems. I routinely use a Fuzzy Logic decision method to
> > evaluate trading
> > results. I also developed a FL trading system for SuperCharts.
>
> Marlowe,
>
> I'd be very interested to hear more about the way you use FL.
>
> Which software do you use?
>
> Are there any learning resources (on- or offline) you would particularly
> recommend?
>
> How do you use FL to evaluate your trading results?
>
> Any guidelines on how to go about designing a FL-based trading system?
>
> With Thanks,
>
> Cab Vinton
> cvinton@xxxxxxxxxxx
>
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