FINANCIAL PREDICTION AND TRADING STRATEGIES USING NEUROFUZZY APPROACHES

Neurofuzzy approaches for predicting financial time series are investi gated and shown to perform well in the context of various trading stra tegies involving stocks and options. The horizon of prediction is typi cally a few days and trading strategies are examined using historical data. Two methodologies are presented wherein neural predictors are us ed to anticipate the general behavior of financial indexes (moving up, down, or staying constant) in the context of stocks and options tradi ng. The methodologies are tested with actual financial data and show c onsiderable promise as a decision making and planning tool.