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VantagePoint Software Review

A.I.-Powered Market Forecasting for the Modern Trader

 

Ralph Vince

VantagePoint represents a paradigm shift in technical analysis software, moving beyond traditional backward-looking indicators to provide forward looking market predictions through artificial intelligence and intermarket analysis. Having analyzed multiple independent evaluations spanning several years, this review synthesizes the key findings about this pioneering trading tool.

Over my decades long career evaluating countless trading systems, I've been selective about where I invest my development efforts. VantagePoint stands among the very few platforms I chose to build my most prized indicators in. This decision reflects VantagePoint's robust architecture, forward-looking methodology, and genuine edge that aligns with the rigorous mathematical approach I've championed throughout my career.

My path to VantagePoint has an interesting history. In 1987, I worked with Larry Williams during his legendary trading championship performance, where he transformed $10,000 into over $1 million in a single year. In 2010, Larry built some of his best indicators into VantagePoint. When I considered where to develop my own proprietary indicators, Larry's recommendation carried tremendous weight. He told me VantagePoint was a solid tool and that the Mendelsohns were good people. A few years later, I followed his lead, a decision I've never regretted.

The Core Innovation: Predictive vs. Reactive Analysis

Traditional technical analysis tools excel at showing what has happened. VantagePoint's breakthrough lies in forecasting what will happen. The software employs patented neural network technology to analyze relationships between global markets, identifying the 30 most influential markets affecting any target you're tracking.

Independent Academic Validation

One of the most rigorous examinations came from Dr. Phillip Arcuri (Ph.D., Oxford 1985), who conducted an independent analysis in May 2023. This was a serious academic study analyzing real performance data from August 2021 to August 2022, encompassing 137,605 crossover events across 2,403 securities.

Dr. Arcuri's methodology compared VantagePoint's predictions against naïve models, which are the standard technical indicators most traders use. He included standard deviations, confidence intervals, and tested across multiple sectors including stocks, forex, cryptocurrencies, and ETFs, evaluating 15,000 neural networks trained on over 10 million data points.

The findings were compelling: VantagePoint's Neural Index predicted market direction correctly 76.13% of the time, compared to 64.24% for baseline models. This represents an increase of nearly 12 percentage points, translating to almost 20% improvement in performance accuracy. With proper filtering techniques, success rates reached 73.65% versus 62.68% for standard systems. Some securities showed even more impressive results, with Avient reaching 84.65% accuracy.

What makes these numbers meaningful is their consistency and statistical significance. The study demonstrated reduced lag and fewer false signals compared to traditional moving averages. From my perspective, having spent decades studying position sizing and optimal f, even modest improvements in directional accuracy compound dramatically when combined with proper money management. A 12 percentage point edge is the difference between long term profitability and slow capital erosion.

Key Predictive Indicators

VantagePoint's flagship Predicted Neural Index compares today's actual three-day moving average with a predicted three-day moving average, forecasting whether typical price will be higher or lower two days ahead. This binary signal, green for up and red for down, provides clear, unambiguous guidance.

The Predicted Moving Averages often turn days before actual averages, providing early trend change signals optimized for short-, medium-, and long-term timeframes. The Predicted Trading Range forecasts next day's high and low, valuable for optimizing entries and setting effective stops. Predicted Differences measure momentum shifts by tracking convergence and divergence between different timeframe averages, highlighting when trends are strengthening or weakening days in advance. Traditional indicators like RSI, MACD, and Stochastics are transformed into forward-looking tools using VantagePoint's A.I. engine.

Market Coverage and IntelliScan®

VantagePoint covers over 2,000 symbols including US stocks across 16 sectors, comprehensive forex coverage, extensive ETFs across 19 sectors, and over 30 cryptocurrency markets. The software operates on end-of-day data, ideal for swing and position traders.

The IntelliScan® feature filters thousands of markets in seconds using over 70 customizable criteria. Rather than manually reviewing charts, traders instantly identify markets showing specific patterns like recent predictive crossovers, positive Neural Index readings, aligned trend forecasts, and momentum acceleration patterns.

Historical Context: Three Decades of Proven Performance

Louis Mendelsohn pioneered the entire field of A.I.-powered trading software. In the late 1980s, when most traders plotted charts by hand and A.I. was confined to academic labs, Mendelsohn was applying neural network technology to financial forecasting. VantagePoint's commercial release in 1991 made it the first A.I.-based trading software available to individual traders.

VantagePoint has demonstrated consistent performance through the 1990s bull market, the 2000 to 2002 tech crash, the 2008 financial crisis, the quantitative easing era, flash crash events, COVID 19 market disruption, and today's environment of geopolitical uncertainty.

The distinction between VantagePoint and today's A.I. trading startups is stark. While new entrants train algorithms on limited historical data, VantagePoint's neural networks have been refined through actual market experience spanning multiple technology generations. The system benefits from 30+ years of pattern recognition across billions of data points.

Limitations and Value Proposition

VantagePoint provides predictive intelligence traders must interpret. Success still requires sound money management, appropriate position sizing, understanding of market context, and discipline. The software works with end-of-day data, making it less suitable for day trading. While accuracy rates are impressive, no system is infallible.

At approximately $2,900 to start, VantagePoint represents a significant investment. However, considering its accuracy and comprehensive coverage, the software can potentially pay for itself quickly through improved trade selection. The company offers free demonstrations and strong customer support.

Conclusion

VantagePoint stands apart by doing something genuinely different, using artificial intelligence to forecast market movements rather than simply analyzing historical patterns. The consistent accuracy demonstrated across multiple independent tests, combined with comprehensive coverage and user-friendly interface, makes it a powerful tool for serious traders.

 

Experience VantagePoint A.I. Free in a Live Class Click here

Disclaimer: About the Author:

Ralph Vince is a renowned quantitative analyst, professional trader, and pioneer in portfolio mathematics and money management. He is widely recognized for his groundbreaking work on optimal position sizing and risk management strategies in trading and investing.  Vince has authored several influential books including The Mathematics of Money Management (1992), which introduced traders to the concept of optimal f (the Kelly Criterion applied to trading), and Portfolio Management Formulas (1990). His research focuses on the mathematical optimization of trading systems, particularly how to determine optimal capital allocation to maximize geometric growth while managing risk.   His contributions have significantly influenced modern quantitative trading and risk management practices, making complex mathematical concepts accessible and applicable to traders seeking to optimize their portfolio performance.
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