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Fuzzy Logic in Trading Strategies

Jan 18, 2025

Trading Strategies and Fuzzy Logic

Introduction

  • Presenter: Casey from Star Wars Channel
  • Topic: Answering viewers' questions on trading strategies.
  • Purpose: Help shy traders and encourage problem-solving in programming.

Engagement

  • Request to like, subscribe, and share the video for channel support.

Question 1: Building a Template with Fuzzy Logic

  • User Question: Hablimos asks about creating a fixed variable with fuzzy logic.
  • Process:
    • Use Algo Wizard and switch to Template Mode.
    • Example: Set condition "close > close one day ago."
    • Generate random values for shifting and save the template.
  • Limitation: Fuzzy logic cannot be added to templates; templates restrict options.
  • Alternative Approach:
    • Use Simple Strategy Default and create Custom Blocks.
    • Import custom indicators or patterns into the builder.
  • Fuzzy Logic Explanation:
    • Combines multiple conditions; a signal is generated if a fixed percentage of conditions are true.
    • Example: If 50-57% of conditions are met, the entry signal is valid.
  • Implementation:
    • Users can adjust the weight of blocks to make certain conditions more prominent.
    • Be aware of a bug that may cause repeated conditions in results.

Question 2: Filtering Losing Strategies

  • User Question: A request for demonstrating a custom project to weed out losing strategies on specific days.
  • Current Structure Limitation: Cannot change logic in the crosscheck; only filtering is possible.
  • Process:
    • Use What-If Simulation in the crosscheck settings.
    • Set conditions to filter days with profitable net profit.
    • Example: Filter for profitable strategies on Mondays.
  • Test Results:
    • Use the settings to isolate losing strategies on specific days (e.g., losing on Wednesdays).
    • Create separate data banks for failing strategies by day.
  • Conclusion:
    • Use these methods to refine strategy selection and improve performance.

Closing

  • Thanks for watching. Encouragement to engage, like, and ask questions for further assistance.
  • Reminder to stay safe and good luck with trading and investing.