Financial volatility trading using a self-organising neural-fuzzy semantic network and option straddle-based approach

► A straddle trading framework based on eFSM neural-fuzzy model and MACD principle. ► eFSM dynamically models and forecasts the volatility trends of the Hang Seng Index. ► MACD generates timely trading signals using projected volatility trends from eFSM. ► Straddles are bought and sold based on the MACD signals. ► Trading framework achieves significantly higher return than time deposit account.