Modeling Trading Decisions Using Fuzzy Logic

Contents

Part 1: A Primer on Classical Logic

Part 2: The Real World

Part 3: An Introduction to Fuzzy Logic

Part 4: Modeling Trading Decisions

Conclusion

1- A Primer on Classical Logic

Thanks to the Abbasid empires goal of translation and preservation of Aristotles texts, we maintain the robust two thousand years old Aristotelian logic known to us today as: Categorical Logic. Essentially, it forms the rubric of classical or traditional logic.

Over the years categorical logic gave birth to formal logic — which sees heavy usage in discrete mathematics. You can brush through discrete mathematics concepts and the topic of logic in this article:

A Brief Primer on Discrete Mathematics

There are two important types of deductive inference in categorical logic we’d like to refer to; and they are:

• Modus Potens
• Modus Tollens