Fuzzy Logic
Using fuzzy logic allows your strategy to behave less like a robot and more organically like a human trader, allowing you to operate in shades of grey instead of black and white.
Many strategies are designed with concrete digital logic in mind in order to make it fool proof for manual execution. However, this self-imposed limitation is often a mechanism to prevent traders from tampering with the trade rules – guaranteeing that the trades are being taken objectively and not through emotion. While this may remove the emotional aspect of trading the system, it is at the cost of flexibility, a trait that is regularly employed by expert discretionary traders. Master discretionary traders can often outperform automated trading systems due to this use of flexibility and higher level cognition.
With the use of BloodHound’s fuzzy logic technology, you can benefit from both the emotionless objectivity of an automated trading system, but still mimic the behavior of a discretionary trader. It may sound complex, but it isn’t – BloodHound does all the heavy lifting behind the scenes so you can focus on the main logic.
Feedback Loop
BloodHound is about speed and flexibility, literally changing the way you design strategies. The act of switching modes from coding to compiling to running your strategy/indicator just to test a simple tweak forces you to interrupt your cognitive thought. Furthermore, it adds significant time to your development.