[TME]

VantagePoint is one of the most baffling bits of financial software I have come across.

I intially purchased it because I liked the idea of 'intermarket' analysis, and 'leading' moving averages based on neural networks. There are quite a few people who doubt that it provides either. And I can't say for sure that they are wrong, because VP provide no proof of this, though they do have a number of custom indicators (such as neural index and predicted next day low and high)) which I suspect are neural network-derived.

Now, however, it has become an essential part of my own trading software, but for reasons quite unrelated to those for which I originally bought it. It allows me to download data into Excel along with all the VP indicators, which I have found perform very well (in combination) when you apply data mining analysis (using inexpensive Excel add-ins for the most part) to its various indicators. This often provides a better idea of short-term trend than most other software I have come across.

Of course, I can't say you wouldn't do as well to use other free data such as provided by Metatrader for example (though you then have to find something to compute your indicators). It's just that VP seems to do quite well, and the more you use it the more useful you find it. Or at least I have.

It is expensive, but for the better-healed trader I don't think that would be a huge drawback (particularly considering the cost of some of these 'courses' for which you pay thousands to learn some basic stuff you could pick up from an elementary textbook).

So, I am not really recommending it, unless (a) its particular approach (largely trend following, though more skillful traders may find other ways to use it) suits you, and (b) you are prepared to invest a bit of time and effort in learning how to understand the indicators provided (particularly in combination - which does, in my opinion, provide some very useful insights).

I recently did an analysis, using things called decision trees (which weed out the most successful indicators on any particular backtest) and found that VP predicted high and low (for next day prices) performed better than any others, including some 'conventional' ones, even in predicting prices five days in advance!

So, for me it is very useful, but there is one excellent review on this site (DaveO) which points out all the pitfalls with admirable clarity. The shame is that users can't decide for themselves very easily as there is not free trial period, and no money back guarantee.

I would just like to point out that for those who have a bit of money to spend, and are prepared to make an investment that may not work out for them, then VP may offer something unexpected. It has done so for me, though, as I say, you have to work at it (true of anything, I guess).