I am thinking about investing in VantagePoint. Exactly how does this help me in making trading decisions…and thanks for speaking in very simple English?

JL from TradingEdge town


JL, in the interest of full disclosure, let me say I am a VantagePoint user, and it works for me. In the interest of your question, let me tell you how and why VantagePoint works, which should answer your question.

VantagePoint software is based on two important elements. The first is Intermarket Analysis (IM). The fundamental premise of IM is that single-market analysis does not give the trader enough information to “predict” market movement. IM (in VantagePoint) gathers information from the market itself and 25 closely-related markets to forecast the direction of that single market. The second important element is that VantagePoint utilizes neural networks (advanced software) to “digest” that data and to recognize patterns (technical analysis) of movement. The result of the data crunch and the pattern recognition is the proprietary Predicted Neural Index (PNI). The PNI tells you whether the market is going up or down (in the short term) based on an analysis of that market’s simple, three-day moving average.  

Here is why it works. In this age of instantaneous, global information transmission, global markets have a greater affect on one another than ever before in history. To analyze a market as an island unto itself just doesn’t make sense. Thus, it is logical that any forecast about a market must include closely-related markets to be as accurate as possible.

More important than the technical workings of VantagePoint is that the software is simple to use. All you do is set up the Intelliscan filters to your specific technical requirements and up pop all the markets that fit those criteria. At this point, the work of trading comes into play, but VantagePoint simplifies that as well.

The technical tools provided in VantagePoint not only allow the user to find potential trades, but they can provide confirmation of those trades as well. Do not underestimate this feature. Many potential trades are found; few are chosen.   

True, the software is pricey, but I can tell you from personal experience, you get what you pay for, that is, if you want a tool that will truly help you make money trading markets.

Trade in the day; invest in your life …

Trader Ed