Pokémon or Profits: Technology is a Game Changer

July 15th, 2016 by VantagePoint Software

Pokemon or Profits

“Pokémon Go” debuted last week and already millions of people have downloaded the app. The game has teens and adults staring at their phones, using technology to chase virtual monsters through parks, streets, and even off cliffs. Nintendo’s ($NTDOY) stock price has nearly doubled. This adds roughly $7.5 billion to the market cap of a game-maker that had previously lagged in mobile gaming. While the concept of augmented reality is nothing new, this is the first commercial breakthrough. 

Nintendo Stock

Technology has forever changed many industries from retail and automotive, banking and financial services. Being ahead of the curve and applying new technologies that improve current products, processes or experiences is what allows companies to flourish in today’s fast-paced, interconnected world.

Over 37 years ago, stocks trader and technical analysis guru, Louis Mendelsohn, identified an opportunity to take trading software to the next level. By applying an Artificial Intelligence system that analyzes global market relationships and transforms traditional lagging indicators into predictive, market leading indicators, in 1991 VantagePoint Intermarket Analysis Software became the first trading software that could forecast market direction and strength with up to 86% accuracy. To date, over 15,000 traders have utilized this cutting-edge technology to gain an edge on the stock market. And while it won’t help you catch a Pikachu, it will help you catch major profits.

Forecasting Technology in Action

VantagePoint Technology - DR. Horton Stock

VantagePoint forecasted a move to the upside (indicated by the blue line crossing over the black line) in D.R. Horton ($DHI). This stock rose 8.01% in the last 9 trading days. This equates to $2.52 profit per share.

VantagePoint Technology - E-mini DIJA
VantagePoint forecasted a move to the upside (indicated by the blue line crossing over the black line) in the E-mini DIJA D.R. Horton ($DHI). This market moved up $3190 per contract.
VantagePoint Technology - USD/JPY
VantagePoint forecasted a move to the upside (indicated by the blue line crossing over the black line) for USD/JPY. This market went up 257 pips, equating to $2550 per standard lot.

The similarities between VantagePoint Software and “Pokémon Go” extend well beyond the technology. Unlike conventional computer and console games that demand a player’s full attention, “Pokémon Go” can be consumed in bite-size increments throughout the day. This mimics a pattern that already matches most people’s phone usage habits.

Recognizing that most people don’t have all day to spend on their investments, VantagePoint was also built to be a time-saving tool. By requiring just a few minutes each day, the software fits well with the busy lifestyles of traders.

Instead of just augmented reality, how about augmenting your income?

Don’t let this one get away. Request a free one-on-one demonstration today and see for yourself how this trading software is a complete GAME CHANGER.

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Why Traders Shouldn’t ‘Sell in May and Go Away’

May 26th, 2016 by VantagePoint Software

Don't Sell in May and Go Away
Veteran traders have heard it before. Sell in May and Go Away. The idea behind the catchy strategy is warning traders of increased volatility and lower trading volume during summer months.

Some would argue this summer is the proverbial poster child for this strategy. An uncertain and highly divisive U.S. political landscape, a likely rise in interest rates this June and international turmoil such as the Brexit are just the tip of the iceberg. It’s no wonder long-side traders are thinking of pulling money from the market and sticking it in their mattresses.

But, the fact is that even the most bullish bulls can make money from the long side during the summer months. A blind strategy is a poor strategy unless you’re trying to leave money on the table.

If not ‘Sell in May and Go Away’ then what?

The quick answer is that there’s always an opportunity to make money with the right tools and understanding.

On the economic front, there are bright spots that could drive the market higher. The U.S. economy is stronger than the breathless media contends despite their efforts to suggest an apocalyptic recession is on the horizon. New U.S. single-family home sales surged to an eight-year high in April and home prices hit a record high. The usually strong spring housing market could even be stronger if only there were more homes for sale.

While all this positive economic news is great, it doesn’t mean that traders should blindly buy the SPY or other long market ETFs this summer for the sheer fun of it. Understanding which opportunities are strong stocks that have an established upward trend is the other half of this equation. Utilizing the proper tools and strategies to navigate expected summer market volatility will be how traders can use this positive news to create personal financial gains.

Instead of taking the “Sell in May and Go Away” approach, you may want to capture stocks that are in a short-term uptrend. As more of a swing trader, traders will typically hold a position for a few days up to a couple of weeks. Summer is no time to force your desires on the market. If the market tells you to get out, then do it. Light volume can exacerbate moves. Your timing will be more important than ever

Having a tool that can help your timing and give you an accurate forecast 1-3 days in advance will be crucial to your timing strategy. VantagePoint Intermarket Analysis Software provides that forecast with up to 86% accuracy.

The proprietary and patented market-leading forecasts put bulls ahead of the rally to get you in an upward trending stock before most other traders know what’s happening. How is this possible? By utilizing artificial intelligence to identify intermarket relationships and analyze the strongest drivers and pullers for a particular market.

By using the right tools, and modifying your strategy to adapt to the market conditions, you don’t have to “Sell in May and Go Away.” Instead, you can put yourself in a position to find profitable positions in any given season. Smart traders find ways to make money. And we all want to be smarter traders don’t we?

VantagePoint Forecasting in Action

We’ve captured a few examples of growth in the below video to demonstrate how bullish trends do happen in May. You just have to know where to find them, and when to do something about them.

In this video we review the following recent moves:

  • L3 Communications ($LLL) which increased 26.69% ($21.41 per share) over 49 trading days.
  • Boston Scientific ($BSX) which increased 31.82% ($5.67 per share) over 70 trading days.
  • Integrated Device Technology ($IDTI) which increased 11.11% ($2.28 per share) over 16 trading days.
  • Sanmina Corporation ($SANM) which increased 17.62% ($3.91 per share) over 22 trading days.

 

To learn more about how to use VantagePoint and see firsthand how our patented, predictive forecasts can help you, request a free demo.

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Man v. Machine – Artificial Intelligence Trading Software

June 26th, 2015 by VantagePoint Software

artificial-intelligence-trading-software

Artificial Intelligence (AI) systems have had varying degrees of success when measured against humans. In problems such as chess, which succumb to sheer computational firepower, the machines have advanced greatly in a short time.

Like chess, financial markets operate under the supposition of rational participants. Humans are supposed to be calculating the odds, maximizing return and minimizing risk.

If this were indeed the case, artificial intelligence trading software would stand a good chance at bettering its human counterparts in making and capitalizing on market decisions. Unfortunately, rationality is not always the best assumption for either humans or markets. One needs to look no further than the current economic situation to observe how irrational human traits like confidence, fear and greed play out in market dynamics. The uncertainty injected by the human participants makes the markets much harder to predict.

Back Propagation Neural Network

However, artificial intelligence trading software can be successfully applied to certain trading functions, specifically intermarket analysis. An invention by Louis Mendelsohn relates to methods and systems for performing intermarket analysis using neural networks. A neural network is a system of programs and data structures that approximates the operation of the human brain. (Learn more about Neural Networks here.)

Mendelsohn’s invention details proprietary methods and processes for selecting from a large pool of available global financial markets. These are the related markets that have the highest relevance in training neural networks to make market forecasts for each ‘primary’ market with a high degree of predictive accuracy. This selection process includes determining ‘key’ intermarkets, ‘general’ intermarkets, and ‘predictive’ intermarkets from the pool of available markets that correspond to each ‘primary’ market.

Neural Network Software

Market data for each of the key intermarkets, the general intermarkets and the predictive intermarkets can then be processed to train neural networks so that when the neural networks process this input data, predictive output data generated by the neural networks for each primary market are as accurate as possible.

After training the neural networks, all relevant market data for each primary market can be processed with the neural networks to predict future market data. That data is then used to arrive at a predictive technical indicator for use by the trader in making trading decisions.

This process drives the VantagePoint software so humans can make rational trading decisions to master the markets.

VantagePoint Software Demo

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5 Things Every Trader Needs to Know About Trend Forecasting

April 7th, 2015 by VantagePoint Software

Trend Forecasting for Traders

Trend followers in fashion can be fickle and flighty. It is tough to predict the whims of the fashionistas as to what the “hot colors” or who the “in designers” will be for next spring.

And while it is also tough to know where IBM or AAPL stock will be trading a year from now, there are some basic truisms that trend forecasters can use that apply to all markets.

Here are five basic concepts about trend forecasting that can help set you up to be potentially profitable in the markets.

  1. All Trends are NOT Created Equal – Stock Chart Patterns

If you are looking at a stock chart, examining the price movement over 30 minutes versus 30 days will yield dramatically different results. First and foremost, you need to understand what time period you are considering.

Trends can be classified as primary (long), intermediate and short term. However, markets exist in several time frames simultaneously. As such, there can be conflicting trends within a particular stock depending on the time frame being considered. It is not out of the ordinary for a stock to be in a primary uptrend while being mired in intermediate and short-term downtrends. This also applies to almost any asset class including commodities and ETFs.

Typically, beginning or novice traders lock in on a specific time frame, ignoring the more powerful primary trend. Alternately, traders may be trading the primary trend but underestimating the importance of refining their entries in an ideal short-term time frame.

A general rule is that the longer the time frame, the more reliable the signals being given. Once the underlying trend is defined, traders can use their preferred time frame to define the intermediate trend and a faster time frame to define the short-term trend.

But that doesn’t mean that each trend should be viewed in isolation. Taking a holistic approach to trend analysis can be very beneficial. Greg Firman, market analyst for TraderPlanet.com who spoke at the VantagePoint Power User Seminar in February, likened trend trading to automobiles. 

  1. There are Two Main Types of Trend Trading – Following and Fading

A trend-following strategy is one used to identify entries in trending markets. The goal of a trend-following strategy is to buy and close a position at a higher price in a bull market, and to sell and close a position at a lower price in a bear market. The most simplistic definition of a bull market is a price pattern of higher highs and higher lows. The most simplistic definition of a bear market is a pattern of lower lows and lower highs.

But according to Firman, markets trend only 20 percent of the time. Therefore, trend following strategies are not always applicable.

A trend-fading strategy is one that is used in sideways or choppy markets. Trend-fading strategies identify opportunities to sell highs and buy lows (the opposite of a trend-following strategy). With trend-fading strategies, traders profit if a position is taken and the market moves back to an established range.

  1. Moving Averages – What Every Trader Needs in Their Trend Trading Toolbox

Moving averages (MAs) are among the most popular tools for trend followers and for good reason. The technique is very effective at identifying trends and enabling traders to maintain their positions until the trend is over. Moreover, by varying the lengths over which the MA is calculated, the sensitivity to smaller price changes can be adjusted to suit traders’ preferences. Shorter MAs involving a smaller number of days or weeks are more sensitive and provide quicker and more numerous signals than longer moving averages.

Traders like moving averages because they smooth out the peaks and valley in prices, are easy to use, and are easy to interpret. To learn more about moving averages watch our recent video here.

These are the positive qualities. The problem is that MAs are a lagging indicator. That is why in 1991, after years of research, VantagePoint’s team developed technology that forecast trends based on moving averages while retaining the positive qualities and reducing, or eliminating, the lag, which is the negative quality.

VantagePoint’s Predictive Moving Average (PMA) takes actual data and predicted data to forecast market trends.

  1. Support and Resistance – Where Market Trends Can End

So how can traders tell when a trend is coming to an end?

“Key support and resistance is the biggest teller – knowing where the buyers and sellers are,” said Firman.

Support and resistance are magnets that draw the market to them. As with any magnetic field, the closer the market gets, the stronger the magnetic pull, and the more likely it is that the market will reach the target. Also, as with a magnet, the market often accelerates when it gets close to the magnet. This momentum often results in either a breakout or continuation of the trend, or a trend reversal. Once the market reaches the target, the magnetism usually greatly decreases. It is as if the market turns off the magnet once it is reached.

If the market reverses or breaks out, it then moves to the next support below or resistance above. In a strong bull trend, resistance usually results in a pause because of profit taking or attempts to pick a top, but the trend then resumes up to the next resistance level. In a bear trend, the market usually falls through all support, although it often pauses at each level because of profit taking or attempts to pick a bottom.

All bull trends end at resistance and bear trends end at support, and if traders know how to read the changes in buying and selling pressure, transition can provide several trades in both directions.

  1. Trend Forecasting – Artificial Intelligence Can Improve Your Success

Many technical indicators, such as moving averages, attempt to filter out short-term price fluctuations so that the underlying trend can be observed. As mentioned earlier, trend traders rely on moving averages because they smooth out the movement in prices, are easy to calculate and understand, and depict the underlying trend.  However, a side effect of doing this is that the technical indicators like moving averages tend to lag behind the market and fail to spot the end of a trend.

Such technical indicators are referred to as lagging indicators. This lag effect typically causes the trader to respond late to market changes, resulting in lost profit opportunity and risk of increased losses.

VantagePoint’s research team has invented proprietary computer processes which address these limitations and overcome the lag effect through the development of methods, systems, and devices that combine both actual and predicted data derived from the application of neural networks to intermarket data found to be most influential on each specific primary market.

What that means for trend forecasting is that the artificial intelligence in VantagePoint gives traders a jump on the market. This is a priceless technological edge for traders looking to maximize the trend.

Take your trading to the next level with VantagePoint’s predicted moving averages that forecast trends ahead of the market. Request a free demo here.

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Market Forecasting Methods for the New Age of Trading

February 26th, 2015 by VantagePoint Software

Are your Market Forecasting Methods Ready for the New Wave of Trading?

market forecasting trader

As a trader you have probably thought to yourself “How can I get my moving averages to be predictive instead of lagging?” In other words, you’re looking for ways to improve your timing so that you stop leaving profits on the table. The answer could be as simple as reevaluating your current market forecasting methods.

Moving averages can be modified to incorporate intermarket data and even constructed so that they become leading, rather than lagging, indicators. This step ahead in crucial in today’s market forecasting as it gives traders the edge needed to get ahead during times of low confidence or volatility.

This can be accomplished in a number of ways, one of which is through a mathematical tool called “neural networks” that can be used to forecast moving averages based upon both single market and intermarket data.

Through the use of Artificial Intelligence, these neural networks function like a brain to “learn” relationships within and between similar networks to recognize hidden patterns and make predictions about the market with a high percentage of accuracy.

neural networks chart for market forecasting methods

This technology is employed by VantagePoint to generate Predicted Moving Average tools that utilize neural networks and intermarket analysis to smooth out the price trend. This technologically advanced approach turns what has traditionally been a lagging indicator into a leading indicator, a highly accurate predictor of short-term trends.

By obtaining a 1-3 day jump start on a trends direction or price, traders can enter and exit positions with a high degree of accuracy, proven up to 86% with the use of VantagePoint’s patented science. Don’t take our word for it – listen to what these other traders had to say about their experience with the software.

VantagePoint Software Forecast

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