We have developed an expert system, called PORSEL (PORtfolio SELection system), which uses an effective set of rules to select and evaluate stocks on the Internet. At present, the PORSEL consists of three components: the information center, the fuzzy stock selector, and the portfolio constructor. The purpose of the information center is to provide representation of several technical indicators such as candlestick charts, moving average of closing prices, and price trends. The fuzzy stock selector evaluates the listed stocks and then assigns a composite score for each stock. The portfolio constructor generates the optimal portfolios for the selected stocks. A client/server model is implemented which allows users to communicate with the PORSEL program on a server computer at a remote site in a user-friendly manner. The results of simulation show that PORSEL outperformed the market almost every year during the testing period.
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