Open Access Article SciPap-1006
Interval Type-2 Fuzzy Logic Expert System for Investment Analysis
by Zuzana Janková 1,* iD icon and Petr Dostál 2 iD icon

1 Podnikatelská fakulta, Ústav informatiky, Vysoké učení technické v Brně, Kolejní 2906/4, Královo Pole, Brno 61200, Czechia

2 Podnikatelská fakulta, Ústav informatiky, Vysoké učení technické v Brně, Kolejní 2906/4, Královo Pole, Brno 61200, Czechia

* Authors to whom correspondence should be addressed.

Abstract: In this paper, a higher degree of fuzzy logic type-2 fuzzy logic is presented as decision making process of investment. There is a key difference between type-2 and type-1 fuzzy logic. The application is made on the Czech stock market and is used to decide on investing in PX index stocks. The proposed type 2 fuzzy model uses the return and risk of investment instruments as input variables. The system created is able to generate aggregate models from a certain number of language rules, allowing the investor to understand the generated financial model. The use of T2FLS can lead to more realistic and accurate results than T1FLS.

Keywords: Artificial Neural Networks, Czech Stock Market, Fuzzy Logic, Interval Type-2 Fuzzy Logic, Investment Analysis, Soft Computing

JEL classification:   C45 - Neural Networks and Related Topics,   G11 - Portfolio Choice • Investment Decisions,   G12 - Asset Pricing • Trading Volume • Bond Interest Rates

SciPap 2019, 27(3), 1006

Received: 3 April 2019 / Accepted: 9 December 2019 / Published: 30 December 2019