Genetic Fuzzy Systems and one application in financial investments
Abstract
Financial managers have to make decisions in real-time with much constrains and sometimes in environment with vague and imprecise information. Another difficulty arises from the enormous amount of financial data. There are various and diverse software systems to support the process of making investment decisions, some based on some fundamental analysis and others - on technical analysis. Fuzzy rule-based systems, with their unique characteristics, such as application of human knowledge; error tolerance; ability relatively easily to create dynamic models of complex and non-deterministic systems with unstable and uncertain parameters, are a technology that provides the tools to overcome the above difficulties. A major disadvantage of each fuzzy system is the lack of flexibility. In this work, the basic requirements for creation of hybrid systems, and one implementation of hybrid genetic fuzzy system for managing financial assets are presented.References
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