Katsuya Yokomura

A Decision Support System Building Tool with Fuzzy Logic and Its Application to Chart Technical Analysis

Abstract Financial decision support systems (DSS), including securities trading support systems or asset liability management systems, have become more intelligent and sophisticated due to the progress of information processing technology, particularly in areas of artificial intelligence (AI). Knowledge acquisition often bottlenecks during the building of intelligent DSS (IDSS) based on AI techniques. This paper describes a DSS building tool with fuzzy logic builtin, which supports knowledge acquisition functions using human-machine interaction and various simulation functions. This building tool consists of the following functions; (1) Fuzzy reasoning, (2) User-friendly fuzzy rule editor, (3) Time-series data handling, including chart graphics, (4) and Simulation and rule evaluation. We applied this tool to build a chart technical analysis support system. This system stores technical analysis know-how in the fuzzy knowledge base, provides various types of information, and helps decision makers make more informed decisions and acquire new knowledge. The effectiveness of knowledge acquisition using this tool has been demonstrated through its application.