Next Article in Journal
Explicit, Determinantal, and Recurrent Formulas of Generalized Eulerian Polynomials
Next Article in Special Issue
Transdisciplinary Scientific Strategies for Soft Computing Development: Towards an Era of Data and Business Analytics
Previous Article in Journal
The Role of Spectral Complexity in Connectivity Estimation
Article

A Compensatory Fuzzy Logic Model in Technical Trading

1
Faculty of Accounting and Management, Universidad Autónoma de Coahuila, Torreon 27000, Mexico
2
Department of Electrical and Computer Engineering, University of Alberta, Edmonton, AB T6G 2R3, Canada
*
Author to whom correspondence should be addressed.
Academic Editor: Sidney A. Morris
Received: 7 February 2021 / Revised: 4 March 2021 / Accepted: 15 March 2021 / Published: 18 March 2021
(This article belongs to the Special Issue Softcomputing: Theories and Applications II)
This work presents a novel approach to prediction of financial asset prices. Its main contribution is the combination of compensatory fuzzy logic and the classical technical analysis to build an efficient prediction model. The interpretability properties of the model allow its users to incorporate and consider virtually any set of rules from technical analysis, in addition to the investors’ knowledge related to the actual market conditions. This knowledge can be incorporated into the model in the form of subjective assessments made by investors. Such assessments can be obtained, for example, from the graphical analysis commonly performed by traders. The effectiveness of the model was assessed through its systematic application in the stock and cryptocurrency markets. From the results, we conclude that when the model shows a high degree of recommendation, the actual financial assets show high effectiveness. View Full-Text
Keywords: share trading; investment modeling; knowledge interpretability; computational intelligence share trading; investment modeling; knowledge interpretability; computational intelligence
Show Figures

Figure 1

MDPI and ACS Style

Rodríguez-Cándido, N.P.; Espin-Andrade, R.A.; Solares, E.; Pedrycz, W. A Compensatory Fuzzy Logic Model in Technical Trading. Axioms 2021, 10, 36. https://0-doi-org.brum.beds.ac.uk/10.3390/axioms10010036

AMA Style

Rodríguez-Cándido NP, Espin-Andrade RA, Solares E, Pedrycz W. A Compensatory Fuzzy Logic Model in Technical Trading. Axioms. 2021; 10(1):36. https://0-doi-org.brum.beds.ac.uk/10.3390/axioms10010036

Chicago/Turabian Style

Rodríguez-Cándido, Norma P., Rafael A. Espin-Andrade, Efrain Solares, and Witold Pedrycz. 2021. "A Compensatory Fuzzy Logic Model in Technical Trading" Axioms 10, no. 1: 36. https://0-doi-org.brum.beds.ac.uk/10.3390/axioms10010036

Find Other Styles
Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Article Access Map by Country/Region

1
Back to TopTop