Project Proposal ME/ECE/CS 539 Stock Trading via Fuzzy Feedback Control

In this project we would try to design a fuzzy feedback control system for stock trading systems. The goal of this project is to tune parameters of the control system with fuzzy logic. This is a famous application of fuzzy logic into control engineering (for example see [5] for examples of tuning PID controllers with fuzzy logic). The output of the controller (control law, control input) is the amount of investment and the input of the controller is the instantaneous price of security we are trading. The goal is to have positive profit from investments at each time instance. Recently, Simultaneous Long-Short (SLS) controller has been introduced in the literature and it has been shown theoretically and by simulation that having SLS controller would lead to positive output of the system (i.e. positive profit of the trading in the stock market). This project would be an effort to extend the concepts of fuzzy logic into SLS controller and build a fuzzy tuned-SLS controller.