Holland's schema theorem, also called the fundamental theorem of genetic algorithms, is widely taken to be the foundation for explanations of the power of genetic algorithms. It says that short, low-order schemata with above-average fitness increase exponentially in successive generations. The theorem was proposed by John Holland in the 1970s.
A schema is a template that identifies a subset of strings with similarities at certain string positions. Schemata are a special case of cylinder sets, and hence form a topological space.
For example, consider binary strings of length 6. The schema 1*10*1 describes the set of all strings of length 6 with 1's at positions 1, 3 and 6 and a 0 at position 4. The * is a wildcard symbol, which means that positions 2 and 5 can have a value of either 1 or 0. The order of a schema is defined as the number of fixed positions in the template, while the defining length is the distance between the first and last specific positions. The order of 1*10*1 is 4 and its defining length is 5. The fitness of a schema is the average fitness of all strings matching the schema. The fitness of a string is a measure of the value of the encoded problem solution, as computed by a problem-specific evaluation function. Using the established methods and genetic operators of genetic algorithms, the schema theorem states that short, low-order schemata with above-average fitness increase exponentially in successive generations. Expressed as an equation: