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Has fuzzy logic been commercially applied in finance fields and has it been successful ? I have got knowledge that it has been applied in Algorithmic trading and operational risk, but I want to know what are the other fields where they have been applied successfully on a commercial basis

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-1: This is not a MO question! –  Charles Stewart Jan 20 '10 at 10:14
Si, it is: #12401. Why do you think it's not a good MO question? –  Pete L. Clark Jan 20 '10 at 11:42
I agree somewhat with Charles. To be a good MO question, I would hope the poster would describe fuzzy logic, describe their thoughts on its applications to finance, etc. –  Theo Johnson-Freyd Jan 20 '10 at 15:49
I agree that this isn't a good question as written. Without any indication of why you'd expect an interesting answer, it feels like a random "Is there a relationship between X and Y?" question. It's not clear why the question is being asked or what the asker hopes to get out of it. If I weren't a moderator or if there were already some close votes, I would vote to close until the question was edited to include more explanation (like what Theo suggested). –  Anton Geraschenko Jan 20 '10 at 19:56
I think the problem is not that much with the question as it is with fuzzy logic itself (see wikipedia en.wikipedia.org/wiki/Fuzzy_logic ). It is a mathematical theory, famous in other areas, toward which mathematicians (including me) are rather skeptical. So perhaps a better (yet boarder and vaguer) question is: Is fuzzy logic interesting? –  Gil Kalai Jan 21 '10 at 6:56

2 Answers 2

Actually it has - in combination with Neural Nets. The NN is used to evaluate the fitness of fuzzy trading rules. A company that does these kinds of things is Siemens (esp. their research department 'Corporate Technology'). Siemens uses NNs quite successfully for their own trading/hedging commodities (e.g. copper, electricity)

Supplement: As a starting point please have a look at: Siekmann, S.; Neuneier, R.; Zimmermann, H.G.; Kruse R.: Neuro Fuzzy Systems for Data Analysis, In: Computing with Words in Information / Intelligent Syst. 2; Eds.: Zadeh L. A., Kacprzyk J.;p. 35-74; Physica Verlag; 1999

Especially one of the authors, Dr. Hans-Georg Zimmermann is one of the most renowned experts in Neural Networks and Neural mathematics.

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Could you explain a bit more how the fuzzy trading rules work? Mathematical details would be good... –  Joel David Hamkins Jan 20 '10 at 14:16

Not to my knowledge

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This answer is quite amazing... You could reuse it on most questions :D –  Mariano Suárez-Alvarez Jan 20 '10 at 11:37
Well I work in the field, but I realize that my answer may seem quite vague, anyway I was honest while posting it and I am glad to learn from "vonjd" that there exist some application of fuzzy logic in mathematical finance. Regards –  The Bridge Jan 20 '10 at 13:00
Well, not you, Mariano. :) –  Pete L. Clark Jan 21 '10 at 11:26

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