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| List of Figures and Tables | |
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| Foreword | |
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| Foreword | |
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| Preface | |
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| Acknowledgments | |
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| Introduction to Complexity Theory | |
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| Implementing Chaos Theory in Financial Markets | |
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| Introduction | |
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| Change, Order, and Non-Traditional Research | |
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| Time and the Concept of a Chaotic Market Behavior | |
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| Looking at the Origins of Chaos Theory | |
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| Concepts of a Chaotic Market Behavior | |
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| The Able Treatment of Time | |
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| Time Series, Nonlinearities, and Bifurcations | |
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| Why Are We Interested in Chaos Theory? | |
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| Efficient Market Hypothesis and Strange Attractors | |
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| Organization, Evolution, and the Edge of Chaos | |
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| Introduction | |
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| Understanding the Evolution of Systems | |
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| Learning Effects and the Edge of Chaos | |
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| Adaptive Agents and Critical Conditions | |
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| Edge of Chaos and Solution Space | |
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| A Grammar for Problems of Complexity | |
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| Is Equilibrium a Prerequisite to Organization? | |
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| Clues to the Origin of Dynamic Systems | |
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| Principles of Evolution and Risk Management | |
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| Fundamental Notions Underlying the Theory of Complexity and Its Mathematics | |
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| Introduction | |
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| Macroscopic and Microscopic Concepts | |
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| Exploring the Macroscopic Viewpoint | |
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| Is Complexity Theory a Matter of Fashion? | |
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| The Need to Restructure Our Know-how | |
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| Learning from the Behavior of Other Systems | |
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| Entropy and Organization | |
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| Randomness, Probable States, and Prediction | |
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| Weeding Noise Out of Financial Data | |
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| NonLinear Equations and Fractals Underpinning Chaos Theory | |
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| Introduction | |
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| Linear and Nonlinear Models in Forex Operations | |
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| Escaping the Linear Approaches | |
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| Developing Equations for Nonlinear Systems | |
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| Implementing Concepts from Physics in Financial Analysis | |
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| The Need to Rethink Time Series and Solution Spaces | |
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| Dynamic Equations, Forex Trading, and Fractal Concepts | |
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| An Introduction to the Theory of Fractals | |
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| Concepts and Processes in Fractal Geometry | |
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| From Genetic Algorithms to Fuzzy Engineering | |
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| The Essence of Genetic Algorithms and their Implementation | |
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| Introduction | |
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| What Is the Sense of Using a Genetic Algorithm? | |
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| The Mechanics of Genetic Algorithms | |
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| Selection, Mutation, and Performance in the Stock Market | |
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| The Process of Generation in Foreign Exchange Operations | |
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| Applying the Genetic Algorithm in Off-Balance Sheet Operations | |
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| Adaptive Agents and Research in the Capital Markets | |
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| Increased Returns and Positive Feedback | |
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| Biological Research and Genetic Algorithms | |
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| Predictors, Simulators, and Artificial Life at Santa Fe Institute | |
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| Introduction | |
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| The Concept of Reasoning by Analogy | |
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| Modeling Community Intelligence | |
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| Can We Reflect a Pattern of Group Thinking? | |
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| Using Supercomputer Power to Face Processing Requirements | |
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| Swarms and Systems with Feedback | |
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| Competitive Advantages of an Ecological Approach | |
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| Problems and Opportunities in Developing Predictors | |
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| The Financial Industry's Achilles Heel | |
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| Non-Traditional Financial Analysis at MIT | |
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| Introduction | |
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| MIT Researchers Turn Away from Modern Portfolio Theory | |
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| Volatility and the Asynchronous Nature of Financial Data | |
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| Trying to Visualize Multiple Variable Data | |
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| Autocorrelation, Chaos, and Volatility | |
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| The Concept of Risk and Cumulative Exposure | |
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| Why Logistics Equations Need Memory Systems | |
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| Capitalizing on Computer Storage and Agile Algorithms | |
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| Bankers Trust Positions Itself for Greater Competitiveness in the Market | |
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| Using Fuzzy Engineering in Financial Environments | |
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| Introduction | |
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| Implementing Concepts in Fuzzy Logic | |
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| Financial Analysis through Fuzzy Sets | |
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| Advantages from the Implementation of Fuzzy Engineering | |
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| The Cyclical Nature of Financial Business | |
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| Benefits from a Fuzzy Cognitive Model for Financial Operations | |
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| Paying Attention to the Inference Method | |
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| Integrating Fuzzy Engineering and Neural Networks | |
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| Fuzzy Functions, Genetic Algorithms, and Fractals | |
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| Implementing Advanced Financial Analysis | |
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| Dealing with Uncertainty in the Financial Markets | |
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| Introduction | |
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| Initial Conditions and Possibility Theory | |
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| The Meaning of Uncertainty in Financial Data | |
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| Can We Learn from Other Implementation Domains? | |
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| Improving the Scope of Analysis through Fuzzy Sets | |
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| Establishing the Customer's Profile for Relationship Management | |
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| Using a Fuzzy Sets Graph to Judge Customer Behavior | |
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| Automating Sensitive Aspects of Banking Work | |
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| Developing the Client Mirror and Doing Sensitivity Analysis | |
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| Case Studies on How to Apply Fuzzy Engineering | |
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| Introduction | |
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| A Grading Procedure Involving Uncertainty and the Defuzzification Concept | |
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| Capitalizing on the Power of Defuzzification | |
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| Quantification, Qualification, and Fuzzification in Trading | |
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| The Evaluation of Collateral for Equities | |
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| More Accurate Ways for Pricing Collaterals | |
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| Visual Programming and Practical Results | |
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| A Fuzzy System for Bond Evaluation | |
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| Ways and Means of Estimating Cash Flow | |
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| Using the Monte Carlo Method in Financial Analysis | |
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| Introduction | |
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| Problems Connected to the Construction of Stochastic Models | |
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| Concepts and Challenges in Implementing Monte Carlo | |
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| Using Monte Carlo in a Financial Environment | |
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| Understanding the Business of Securitization | |
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| Making Home Mortgages a Marketable Product | |
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| Exploring the Business Opportunities That Are Present | |
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| Developing Valid Models for Securities Pricing | |
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| Can We Reach the Goal of Managing Complexity? | |
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| Introduction | |
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| Complexity, Adaptability, and Behavioral Patterns | |
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| The Process of Learning at the Edge of Chaos | |
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| Is Chaotic Behavior a Prerequisite to Renewal? | |
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| Pattern Formation in an Environment of Complex Behavior | |
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| New Strategies in Financial Trading and in Personalized Investment Services | |
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| Streamlined or Overlapping Research Interests? | |
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| Studies in Finance that Enhance Competitive Advantages | |
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| Organizational Prerequisites in Managing Complexity | |
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| Index | |