Fuzzy Logic

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Fuzzy Logic

A system which mathematically models complex relationships which are usually handled in a vague manner by language. Under the title of "Fuzzy Logic" falls formal fuzzy logic (a multi-valued form of logic), and fuzzy sets. Fuzzy sets measure the similarity between an object and a group of objects. A member of a fuzzy set can belong to both the set, and its complement. Fuzzy sets can more closely approximate human reasoning than traditional "crisp" sets. See: Crisp sets.

Fuzzy Logic

A form of logic programmed into some computers to allow them to use probability. That is, fuzzy logic allows computers to deal with uncertainty and to make decisions based on the information available. Unlike pure logic, which requires certainty, fuzzy logic helps computers make decisions the way humans do, only faster. This can be important in some investment strategies, such as arbitrage, that require decisions to be made very quickly.
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