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Neal: Tell me a little about your VantagePoint software. |
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Louis: Comprised of five neural networks, VantagePoint over-comes these limitations. One network predicts tomorrow's high, a second network predicts tomorrow's low, and a third network predicts a "neural index" based on a three-day moving average forecast. The fourth network predicts a five-day moving average for two days in the future, while the fifth network predicts a ten-day moving average for four days in the future. |
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VantagePoint's predictions are not based on a single-market approach that optimizes moving averages. Nor are its predictions linearly related to past single-market price activity. Instead, VantagePoint takes into consideration the past ten years data from nine related markets that nonlinearly affect the market being traded. The result is a powerful "leading" indicator, comprising two predictive moving average crossover oscillators which, when viewed along with the neural index, gives the trader a clear indication of what the market is expected to do over the next one to four trading days. |
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VantagePoint's predicted intermarket information is detailed in an easy-to-read, one-page daily report, which is updated each day after the markets close. All you need to do is to collect the open, high, low, close, volume and open interest data by modem for the ten markets (target market plus nine related intermarkets) that comprise each VantagePoint program. |
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When the oscillators turn positive, VantagePoint expects the market to go up. Similarly, when the oscillators turn negative, VantagePoint expects the market to go down. Changes in the magnitude of each oscillator from day to day afford an early warning of an overbought or oversold condition and impending change in the strength or direction of the trend. |
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Depending on a trader's account capitalization, risk propensity, and style, she can act on changes in one or both of the oscillators. She can either close out an open position if there is any indication of weakness, or only close out the position if the weakness exceeds a certain "threshold" amount, i.e., if one or both of the oscillators narrow by a minimum number of ticks. |
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