2017, Copyright VectorVest, Inc. · PDF fileCovers the core principles and strategies...

2017, Copyright VectorVest, Inc. ALL RIGHTS RESERVED. No part of this publication may be reproduced in any form or by any means without the prior written permission of the publisher and the copyright holder, VectorVest, Inc.

Special Notice

VectorVest, Inc. will do everything it can to insure the safety of your personal possessions while you are attending the Seminar. If you would like us to watch your computer during lunch, please take it to our registration table, where you will receive a claim check for it. In any event, we cannot assume any responsibility for lost or missing personal property.

VectorVest Product Description

VectorVest 7 – VectorVest 7 comes in three formats, End of Day, IntraDay and RealTime for U.S. and Canadian markets. Additional End-of-Day markets include: Australia, Europe, Hong Kong, Singapore, South Africa, and United Kingdom. VectorVest 7 analyzes, sorts, ranks and graphs thousands of stocks using an advanced, user-friendly platform that is highly customizable. VectorVest 7 provides Buy, Sell and Hold recommendations on every stock, every day and a complete analysis using more than 40 technical and fundamental indicators. Most importantly it gives you market timing updates for precise trading entry and exit points so you can consistently buy low and sell high. The program may be installed on multiple computers for convenience.

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VectorVest OptionsPro - This sophisticated options platform integrates seamlessly with the power and performance of the VectorVest system to help you quickly and easily identify optimal options trades in real-time. I’m confident that this brand new money-making resource will not only save you tons of time, but also deliver a significant boost to your bottom line. You can add OptionsPro to your subscription for $249/month or $2,795/year.

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VectorVest Options Analyzer – The VectorVest Options Analyzer accesses the VectorVest database and allows you to verify and examine the Profit/Loss implications at expiration of options trades. It also allows you to perform sensitivity studies of all the factors affecting the option premiums prior to expiration. It is perfect for back-testing ideas and for assessing potential option trades. Available for a one-time fee of $495 or FREE with a subscription to VectorVest RealTime.

VectorVest AutoTimer – AutoTimer’s awesome backtesting capabilities help you create and refine your winning plan – then put your trading plan into action with the Portfolio Genius. AutoTimer can be used in historical mode to create, test and refine your perfect automated trading system, complete with market timing, stock selection, stop criteria and a host of other money management options. Autotimer can also be used as a sophisticated paper trading tool. Used in conjunction, the Genius + AutoTimer sends alerts when it’s time to make a trade. Available for a one-time fee of $495 or FREE with a subscription to VectorVest RealTime.

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SpecialBookPricingforSeminarsOnly*Upto50%offlistprices

Title List Seminar

1. A Beginner’s Guide to Short-Term Trading: Maximize Profits in 3 Days to 3 Weeks-Turner Covers the core principles and strategies associated with short-term trading and includes everything from which charting techniques are most useful to topics such as short-selling methods and proper money management for fast-paced markets.

$16.95

$13.56

2. Encyclopedia of Chart Patterns - Bulkowski This book is recognized as the premier reference on chart pattern analysis. It also includes summary tables, a glossary, a chapter on methodology and a visual index to make chart pattern identification a snap.

$120.00

$96.00

3. Get Rich with Options – Lee Lowell This book gives you the basic foundation on the hows and whys of options trading. It will teach you thfour best option strategies that will increase your wealth like no one else will.

$45.00

$36.00

4. Hit and Run Trading Updated - Cooper This book teaches readers different methods that can be used for day-trading and swing trading.

$100.00

$80.00

5. Little Book of Trading - Michael W. Covel The Little Book of Trading teaches the average person rules and philosophies that winners use to beat the market, regardless of the financial climate.

$19.95 $15.96

6. Options Made Easy: Your Guide to Profitable Trading - Cohen This is an easy-to-read yet comprehensive guide to options trading. It will guide through the process of selecting stocks and continue all the way to implementing the options trade safely.

$39.99

$31.99

7. Options Playbook – Brian Overby The Options Playbook was created to demystify option trading and teach different option plays for all market conditions.

$35.00

$28.00

8. Reality Driven Investing: Statistics That Make a Difference – Donald L. Hinman This book presents an easy-to-understand guide for scouting good stocks and how to identify them.

$24.99 $19.99

9. Stock Market Profits: Seven Simple Secrets – Drew Sands This is a short, easy-to-understand book for the stock market beginner, winner or loser that contains must-have information

$17.91 $14.33

10. Stocks, Strategies & Common Sense – Bart DiLiddo, PhD This book contains the foundation and core concepts for the VectorVest Stock Analysis and Portfolio Management System. Dr. DiLiddo is the author of the book and founder of the VectorVest Advisory

$19.95

$9.95

11. The Bible of Options Strategies: The Definitive Guide for Practical Trading Strategies This is an all-in-one practical, easy-to-use reference guide to the world’s most common options trades. It will teach you why each strategy works, when it is appropriate to use and how to place the trade step-by-step.

$65.99

$52.79

12. The New Savage Number - Savage This book illustrates strategic guidance steps along with hands-on techniques that are essential for one to plan for a successful retirement.

$16.95

$13.56

13. The New Sell & Sell Short - Elder How to take profits, cut losses, and benefit from price declines. Expanded 2nd Edition

$39.99

$31.99

14. Way of the Turtle - Curtis Faith This book takes a look at the legendary Turtle Traders and the famous experiment that made them millions. Curtis Faith breaks the silence to reveal the rules, timing, risk, rewards and secrets to his biggest trades and 100 percent annual returns.

$27.95

$22.36

Morning Sessions – Day 1

09:00 AM Welcome

09:15 AM The VectorVest System of Analyzing Ranking Stocks

10:00 AM Stock Viewer and Graphs

10:45 AM Break

11:00 AM Business Sectors and Industry Groups

11:45 AM Power of the VectorVest Homepage

12:15 PM Served Lunch

Afternoon Sessions – Day 1

01:15 PM Managing Your Portfolio

02:00 PM Using UniSearch to Enhance Performance

02:45 PM Break

03:00 PM Testing Your Ideas

04:00 PM ETF Magic

04:45 PM Q&A

05:00 PM Cocktail Reception

06:00 PM Special Presentation

Morning Sessions – Day 2

09:00 AM Using Special Tools for Explosive Profits

09:45 AM ProTrader Graphs

10:30 AM Break

10:45 AM ProTrader Searches

11:30 AM Situational investing

12:15 PM Served Lunch

Afternoon Sessions – Day 2

01:15 PM Worry‐Free Model Portfolios

02:15 PM Break

02:30 PM Seven Secrets to Making Money with VectorVest

04:00 PM Adjourn

Day One

Morning Session

VectorVest

The VectorVest System of Analyzing and Ranking Stocks

9:15 AM – 10:00 AM

1

VectorVest

VectorVest believes

every investor should know:

What a stock is really worth,

How safe it is and,

When to buy sell or hold.

VectorVest

VectorVest believes in

Buying rising stocks in rising markets and

Selling falling stocks in falling markets.

2

VectorVest

VectorVest believes

The stock market is driven by Earnings, Inflation and Interest Rates.

S&P500 Earnings

3

How the Market Works

Earnings

Stock Value goes up with rising earnings.

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S&P 500 P/E vs. CPI: Jan. 1960 to Dec. 2016(20-week average)

CPI Percent ChangeS&P 500 P/E Ratio

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Inflation

Stock Value goes up with falling inflation.

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S&P 500 Earnings Yield vs. 30-Year T-Bond Interest Yield:Jan. 1960 to Dec. 2016

EY

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Interest Rates

Stock Value goes up with falling

interest rates.


Stock Value goes up when:

Earnings go up,

Inflation goes down and

Interest Rates go down.

6


How Do Investors Decide where To Put Their Money?

Stocks vs. Bonds


Money Goes Where Money Grows

EY vs. IY

Earnings Yield vs. Interest Yield

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EY / IY

Ratio of S&P 500 Earnings Yield and

30-Year Bond Interest Yield: Jan. 1960 to Dec. 2016


The Yield Premium

Ideally: EY = IY

In Reality: EY = IY + YP

Where: YP = Yield Premium

8


Inherent Value

If: EY = IY + YP

Then: 100 x (E/P) = IY + YP

Or: 100 x (E/V) = IY + YP

And: V = 100 x [E/(IY + YP)]

How to Value Stocks

Value of Disney (Walt), DIS

V = 100 x [E /(IY + YP)]

V = 100 x [5.72/(5.26)]

V = $108.74/ Share

Closing Price = $103.91/Share*

* 12/16/2016

9

How to Value Stocks

V = 100 x [E /( IY + YP)]

x Sqr [((R + G)/2) / (IY + YP +F)]

where

E = Earnings in $ / share

IY = Interest Rate in %

R = Profitability Factor in %

G = Earnings Growth in % / yr.

F = Inflation Rate in % / yr.

How to Value Stocks

Value of Disney (Walt), DIS

V = 100 x [E /(IY+YP)] x Sqr[((R + G)/2) / (IY+YP+F)]

V = 100 x [5.72/5.26] x Sqr[((14 + 8)/2)/(5.26 + 1.7)]

V = $108.74 x Sqr (1.58)

V = $136.68 /Share*

VV = $127.43/Share

*12/16/2016

10

Stocks Ranked by Value

*Analysis as of 12/16/2016

Company Symbol Exch. Price Value

Disney (Walt) DIS xN 103.91 127.43

NVIDIA Corp NVDA xO 100.41 62.32

Cyberoptics CYBE O 24.85 25.87

Juno Thera Inc JUNO xO 18.94 10.17

Relative Value

An Indicator of Long‐TermPrice Appreciation Potential

Price, Value, Earnings Growth, AAA Corporate Bond Rates and Risk are used to compute Relative Value.

11

Stocks Ranked by RV


Company Symbol Exch. Price Value RV

Cyberoptics CYBE O 24.85 25.87 1.53

NVIDIA Corp NVDA xO 100.41 62.32 1.44

Disney (Walt) DIS xN 103.91 127.43 1.23

Juno Thera Inc JUNO xO 18.94 10.17 0.63

Relative Safety

An Indicator of RiskConsistency and Predictability of Financial Performance are the

Primary Factors in Assessing Relative Safety.

12

Stocks Ranked by RS


Company Symbol Exch. Price Value RV RS

NVIDIA Corp NVDA xO 100.41 62.32 1.44 1.38

Disney (Walt) DIS xN 103.91 127.43 1.23 1.24

Cyberoptics CYBE O 24.85 25.87 1.53 1.05

Juno Thera Inc JUNO xO 18.94 10.17 0.63 0.64

Relative Timing

An Indicator of Short‐Term Price TrendThe Direction, Magnitude and Dynamics of Price History are used

to determine Relative Timing.

13

Stocks Ranked by RT


Company Symbol Exch. Price Value RV RS RT

NVIDIA Corp NVDA xO 100.41 62.32 1.44 1.38 1.72

Disney (Walt) DIS xN 103.91 127.43 1.23 1.24 1.10

Cyberoptics CYBE O 24.85 25.87 1.53 1.05 0.86

Juno Thera Inc JUNO xO 18.94 10.17 0.63 0.64 0.35

VST‐Vector

The Master IndicatorVST‐Vector combines RV, RS

and RT into a singlecomprehensive indicator.

14

Stocks Ranked by VST


Company Symbol Exch. Price Value RV RS RT VST

NVIDIA Corp NVDA xO 100.41 62.32 1.44 1.38 1.72 1.53

Disney (Walt) DIS xN 103.91 127.43 1.23 1.24 1.10 1.18

Cyberoptics CYBE O 24.85 25.87 1.53 1.05 0.86 1.14

Juno Thera Inc JUNO xO 18.94 10.17 0.63 0.64 0.35 0.54

Stop‐Price

An Indicator of When to Sell orCover a Position

An adjusted 13‐Week Moving Average of Closing Prices is used to compute Stop‐Prices.

15

Stocks Ranked by Stop


Company Symbol Exch. Price Value RV RS RT VST Stop

Disney (Walt) DIS xN 103.91 127.43 1.23 1.24 1.10 1.18 92.78

NVIDIA Corp NVDA xO 100.41 62.32 1.44 1.38 1.72 1.53 81.88

Cyberoptics CYBE O 24.85 25.87 1.53 1.05 0.86 1.14 24.45

Juno Thera Inc JUNO xO 18.94 10.17 0.63 0.64 0.35 0.54 21.88

Recommendation

The Bottom LineAll Factors are Considered in Making a B, S, H

Recommendation.

16

Stocks Ranked by REC


Company Symbol Exch. Price Value RV RS RT VST Stop REC

Disney (Walt) DIS xN 103.91 127.43 1.23 1.24 1.10 1.18 92.78 B

NVIDIA Corp NVDA xO 100.41 62.32 1.44 1.38 1.72 1.53 81.88 B

Cyberoptics CYBE O 24.85 25.87 1.53 1.05 0.86 1.14 24.45 H

Juno Thera Inc JUNO xO 18.94 10.17 0.63 0.64 0.35 0.54 21.88 S

Buy, Sell or Hold Criteria

Buy (1) Price > Stop Price, (2) VST > 1, (3) RT > 1 and

(4) Price must be diverging away from Stop Price

Sell Price < Stop Price

Hold Price > Stop, but any of the other three factors needed to receive a Buy are not met.

VectorVest

Stock Viewer and Graphs

10:00 AM – 10:45 AM

1

Stock Viewer

The Stock Viewer is your entrance into VectorVest.

It is an enormous spreadsheet of all VectorVest’s Indicators and Parameters.

Stock Viewer

Capital Appreciation Analysis

EPS ‐ Earnings/Share

EY ‐ Earnings Yield

P/E ‐ Price/Earnings Ratio

GPE ‐ Growth/(P/E) Ratio

SPS ‐ Sales / Share

P/S ‐ Price/SPS

CI ‐ Comfort Index

Value ‐ Intrinsic Value

RV ‐ Relative Value

RS ‐ Relative Safety

RT ‐ Relative Timing

VST ‐ Value, Safety, & Timing

REC ‐ Recommendation

GRT ‐ Earnings Growth

2

Stock Viewer

Dividend Analysis

• DIV – Dividend

• DY ‐ Dividend Yield

• DS ‐ Dividend Safety

• DG ‐ Dividend Growth

• YSG ‐ Yield, Safety, and Growth

Stock Viewer

Price & Volume Information

Price ‐ Closing Price

Open ‐ Open Price

High ‐ High Price

Low ‐ Low Price

Range ‐ High Minus Low Price

Stop ‐ Stop‐Price

$ Change ‐ Today’s Close Minus Yesterday’s Close

%PRC ‐ Percent Price Change

AvgVol ‐ 50 day Moving Average

Volume ‐ Shares Traded

% Vol ‐ Percent Volume Change

3

Stock Viewer

Sales & Capitalization Data

• Sales ‐ Yearly sales in Millions.

• Sales GRT ‐ Sales Growth.

• Shares ‐ Shares Outstanding.

• Mkt Cap ‐Market Capitalization in Millions.

Stock Viewer

Business Sector and Industry Group Information

• The Business Sector and Industry Group that a stock resides in may be seen at the end of each row.

• The Industry Group Averages are listed in the green row at the bottom of the Stock Viewer. This information will change to correspond with the stock you have chosen above.

4

Stock Viewer

Stock Viewer Format

• Default Column Layout

• Default Column Sort

• Drop Down Calendar

Stock Viewer

Find Your Stocks

Use the “Find” button to locate stocks you’re familiar with and see what VectorVest has to say

about them.

5

Stock Viewer

Analyze Your Stocks

Use the Stock Analysis Report for instantaneous analysis of any stock on any day.

VectorVest Graphs

VectorVest Graphs Provide a Visual Presentation of Unique Indicators &

Parameters.

“A picture is worth a thousand words!”

‐ Napoleon Bonaparte

6

VectorVest Graphs

VectorVest Graph Types

• Stock

• Industry

• Sector

• Market Timing

• Performance

VectorVest Graphs

Default Stock Graph Layout

• Price

• 40‐Day SMA (Price)

• RT

7

VectorVest Graphs

Displaying Graphs

• Multiple Tabs

• Detaching Windows

• Scrolling

• Time Frames

• MultiView

VectorVest Graphs

Additional Graphing Features

• Drawing

• Cursors

• Zoom

8

VectorVest Graphs

Layout Manager

• Customizing the Parameter List

• Customizing Parameters

• Creating Layouts

• Applying Layouts

VectorVest Graphs

VectorVest Simple

Favor smooth, steady rising price and smooth steady rising earnings.

VectorVest

Break

10:45 AM – 11:00 AM

VectorVest

Business Sectors and Industry Groups

11:00 AM – 11:45 AM

1

Business Sector & Industry Groups

Segmenting the Market

• Overall Market

• Business Sectors

• Industry Groups

• Individual Stocks

Business Sector & Industry Groups

Birds of a Feather Flock Together

VectorVest analyzes Industry Groups and Business

Sectors in the same way it would analyze an

individual stock.

2

Analyze Groups, Sectors & ETF’s

Relative Timing

RT is the key indicator when analyzing Industry Groups, Business Sectors and ETF’s.

Group & Sector Graphics

A Picture is worth a Thousand Words!

Industry Group and Business Sector graphs provide the best indication of what has happened in the past,

what is happening now and what is likely to happen in the future

3

Group & Sector Graphics

The Past is Prologue

1. Examine Long‐Term Price Trends

2. Study the Relationship between Price, Stop, and Relative Timing

3. Examine 10 x 30 Week Moving Average Crossovers

Group & Sector Performance

RT Shows What’s Hot and What’s Not

1. Beware of Stocks in Groups Falling from Top 30 Ranked by RT

2. Bottom‐Fish for Stocks Rising from Bottom 20 Ranked by RT

3. Is RT Rank Above or Below that of the VVC?

VectorVest

Power of the VectorVest Homepage

11:45 AM – 12:15 PM

1

Power of the Homepage

Getting Started with the Homepage

The VectorVest Homepage is designed to read like the front page of your newspaper.

The headline story is alwaysMarket Timing.


The Color Guard

The Color Guard provides a terse, accurate analysis of Market Direction.

2


Customize Your Homepage

You can use Gadgets to put the information you want on your Homepage.


Exploit the Home Page

All the Information You Need to Make Money with

VectorVest is on the Home Page.

VectorVest

SERVED LUNCH

12:15 PM – 1:15 PM

Day One

Afternoon Session

VectorVest

Managing Your Portfolio

1:15 PM – 2:00 PM

1


“Good portfolio management starts with buying the right stocks.”

‐ Stocks, Strategies & Common Sense, p59.


Analyze Your Stocks

Use Stock Analyzerto Study Stocks that You Have

Owned in the Past.

High VST‐Vector Stocks Tend to Go Up.Low VST‐Vector Stocks Tend to Go Down.

2


High RS Stock Performance

Portfolios of the top 20 stocks, ranked by RS, have made money over 98% of the time for the last

Twenty years.


3


Build a WatchList

WatchLists allow investors or traders to apply the power of rank analysis to the securities that interest

them the most.


Creating a WatchList

1. Select a Group (Folder) from the WatchList Directory or create your own by clicking on the drop down arrow next to the ‘New’ Icon.

2. Click the ‘New’ Icon at the top of the WatchList Directory.

3. Type a Name for your WatchList. Add additional notes about the list to the Description field (date, purpose, etc.)

4. Click ‘Add’.

4


Adding Stocks to a WatchList

1. Type the company name, or ticker symbol, in the ‘Add Symbol’ box located on the Local Toolbar.

OR…

2. Highlight a group of stocks and use the Right‐Click Menu.

OR…

3. Just drag and drop!* To delete a stock simply right‐click and select delete item


Use Rank Analysis

• All WatchLists are ranked by VST‐Vector.

– The best stocks are at the top of the list.

– The worst stocks are at the bottom of the list.

• Perform Rank Analysis.

• Analyze WatchList Averages.

5


Study Graphs

1. Is Price making new highs?2. Is Price above or below Stop?3. Is Price moving toward or away from Stop?4. Is RT moving up or down?*5. Is RT above or below 1.00?*

*RT can see what you can’t with the naked eye.


Prudent Investors should buy

high VST, “B” rated stocks,

in rising Industry Groups,

in Rising Markets.

6


Before buying any stocks:

1. Check for acceptable Fundamentals.

2. Always study the graph. What you see is what you get.

3. Check Industry Group price performance.

4. Check rank within the Industry Group by VST‐Vector and by RS.

5. Consider buying only the highest ranked stocks.

6. Check VectorVest News for additional information.


Guidelines to Building Your Portfolio

1. Use a Dollar‐Weighted System.

2. Hold 10 to 20 Stocks.

3. Re‐deploy Funds on an Equal Value Basis.

7


Entering Your Stocks into Portfolio Manager

1. Click ‘New’ and enter the relevant information to best mimic your trading account.

2. Click on the portfolio name you just created to activate it and then select ‘Add Trade’.

3. Choose the Trade Type by clicking the drop down arrow: Buy Long (Open), Sell Long (Close), Sell Short (Open), Cover Short (Close).

4. Type the company name or symbol in the box below.

5. Select the correct date and the quantity of shares.

6. Click ‘Get Price’ or type your own.

7. Click ‘Apply’.

8. Repeat steps 3‐7 for each trade. Click ‘OK’ when finished.


The Daily Drill

1. Study the Color Guard / VV Views.

2. Sell Low VST, “S” Rated Stocks falling in price.

3. Buy high VST, “B” Rated Stocks rising in price.

VectorVest

Using UniSearch to Enhance Your Portfolio

2:00 PM – 2:45 PM

1

Strategy Selection

Things to Consider

What is my primary goal?

Prudent or Aggressive?

Long‐Term or Short‐Term?

Investment Styles & Strategies

2

Finding the Right Stocks

UniSearch is the most powerful search engine on the market today.

It can run Searches, Trends, Hi‐Los and Deltas on Stocks, Industry Groups, Business Sectors, WatchLists and Portfolios individually

or combined.

Using UniSearch

Searches

Searches look for stocks meeting a certain set of conditions at a fixed point in time.

• Searches can be performed on Stocks, WatchLists, Industries or Sectors.

• Searches are generally categorized as: Prudent, Conservative, Aggressive or Speculative.

• Searches can be sorted by Groups or Alphabetically.

3

Using UniSearch

Selecting Searches

• Select Search Group

• Select Search

• Run search

• Use QuickTest to Check Results

Using UniSearch

Performance QuickTest

Use Quick Test to Count Winners & Losers

and measure raw performance.

4

Conservative – Case Study

Date: 03/01/2015

Situation: Confirmed Up Signal

Search: Prima Donnas

1. Click on the UniSearch tab.

2. Click on Searches – Conservative folder, then Prima Donnas.

3. Run Search on 03/01/16.

4. QuickTest to 06/17/16 ‐ the first C/Dn.

QuickTest Results

5

Prudent – Case Study

Date: 02/19/2016

Situation: First green Light in Price Column off a bottom

Search: Bill’s Best Bets


2. Click on Searches – Prudent folder, then Bill’s Best Bets.



QuickTest Results

6

Aggressive – Case Study

Date: 02/19/2016


Search: Bottle Rockets


2. Click on Searches – Aggressive folder, then Bottle Rockets.



QuickTest Results

7

Speculative – Case Study

Date: 02/19/2016


Search: Jubilee


2. Click on Searches – Speculative folder, then Jubilee.


4. QuickTest to 06/17/16 – the next C/Dn.

QuickTest Results

8

Using UniSearch

Refining Searches

• Filter by a WatchList

• Use Selected Industries

• Use Selected Exchanges

• Use only Optionable Stocks

• Edit existing Strategies

• Create New Strategies

Using UniSearch

Trade Now

Select any stock(s) and use the brand new Trade Now feature to execute trades

immediately.

9

Using UniSearch

Trade Now

The Trade Now button links to your Trading account and allows you to Buy, Sell or Short any

stock directly through VectorVest.

Trade Now Window

VectorVest

Break

2:45 PM – 3:00 PM

VectorVest

Testing Your Ideas

3:00 PM – 4:00 PM

1

Testing Your Ideas

VectorVest 7 has four ways to testyour ideas:

1. QuickTest

2. QuickFolio

3. BackTester

4. Genius

Testing Your ideas

Performance QuickTest

Provides a fast way of testing the performance of a group of stocks over a selected time period.

2

Testing Your Ideas

QuickFolio

Creates a stock portfolio with a few clicks of

the mouse.

Testing Your Ideas

BackTester

Provides a fast, convenient way of establishing the efficacy of the strategy and to refine money

management techniques.

3

Testing Your Ideas

You can always refer to the BackTest tutorial to see how it’s done.

Testing Your Ideas

BackTest Wizard

Is a tool that allows you to create back‐tests in a straight forward, intuitive manner.

4

Testing Your Ideas

Performing A BackTest

You can build your own or select an existing trading system by choosing a backtest template.

*AutoTimer is needed to have access to the templates

Testing Your Ideas

Bill’s Best Bets

A QuickTest of the top 10 stocks showed that from 2/19/16 to 6/17/16 this search gained 13.94% with

7 winners and 3 Losers.

Can we make it better?

5

Testing Your Ideas

Performance Reports

• Summary Report

• Situational Summary Report

Testing Your Ideas

VV Genius

The Genius functions in real‐time and allows you to paper trade and/or monitor your existing

portfolios.

6

Testing Your Ideas

VV Genius

Portfolios can be paper traded manually or by using Portfolio Automation.

Testing Your Ideas

Various Other Reports

• Transaction Log

• Diversification Graph

• Trade History

VectorVest

ETF Magic

4:00 PM – 4:45 PM

1

ETF Magic

What Makes ETF’s so Exciting?

ETF’s, Exchange Traded Funds, eliminate single stock risk like Mutual Funds do, but can be traded like stocks

on an exchange.

ETF Magic


ETF’s provide an amazing range of investment flexibility and convenience…

from matching the performance of indexes, to international investing, to commodity and currency trading and to selling short

without margin.

2

ETF Magic


Options on 3x ETF’s can provide up to

30 to 1 leverage.

ETF Magic

What makes ETF’s so Exciting?

ETF’s are usually identified by

name, ticker symbol and category,

e.g.,

iShares SP500 Index, IVV, Large Blend.

3

ETF Magic

What is the Secret to Picking the Right ETF’s?

Market Timing and Trend Analysis are the keys to picking the right ETF’s.

ETF Magic

How does one Know which ETF’s to Buy, Sell, or Hold?

VectorVest analyzes, sorts and ranks

over 1,400 ETF’s everyday and gives a

Buy, Sell, Hold Recommendation

on every ETF every day.

4

ETF Magic

Making Money with ETF’s

Bullish ETF’s

Buy using the “Best Performing ETF’s” search

In bull markets.

ETF Magic

Making Money with ETF’s

Bearish ETF’s

Buy using the “Worst Performing Contra ETF’s”

searches in bear markets.

5

ETF Magic

Midas Touch & Gold Pairs

• Buy NGUT when Midas Touch Graph Signals Bullish Crossovers

• Buy DUST when the Midas Touch Graph signals Bearish Crossovers

VectorVest

Q&A

4:45 PM – 5:00 PM

VectorVest

CockTail Reception

5:00 PM – 6:00 PM

VectorVest

Special Presentation

6:00 PM

VectorVest

VectorVest Two‐Day

Investment Seminar

End of Day One

VectorVest

VectorVest Two‐Day

Investment Seminar

Start of Day Two

Day Two

Morning Session

VectorVest

Using Special Tools For Explosive Profits

9:00 AM – 9:45 AM

1

Explosive Profits

Special Tools

Hi ‐ Lo

Trend

Delta

Explosive Profits

Hi‐Lo

• Allows you to search for stocks hitting new price Highs or Lows over any period of days or weeks.

• Hi‐Lo can be run separately or in combination with other searches.

• Can be run on Stocks, Industries, Sectors or WatchListsindividually or in combinations.

2

Hi – Lo Case Study

Date: 02/19/2016

Situation: First green light in the Price Column off a bottom

Search: Teeny Boppers


2. Click on Searches – Price‐Volume folder and then select Teeny Boppers.


4. QuickTest to 06/17/16 ‐ the next C/Dn.

QuickTest Results

3

Explosive Profits

Favorite Hi‐Lo Applications

• Stocks Hitting 52‐Week Price Highs.

• Stocks Hitting 26‐Week Price Lows.

• Repetitive New Price Highs or Lows.

• Industries & Sectors Hitting Repetitive Highs or Lows.

Explosive Profits

Trends

• A Trend search finds Stocks, Industries, Sectors or WatchLists exhibiting a certain pattern.

• Trend Searches can be run separately or in combination with other searches.

• Trend Searches can be run on Stocks, Industries, Sectors or WatchLists individually or in combination with each other.

4

Trends – Case Study

Date: 02/19/2016


Search: BF ‐ =S, =B


2. Click on Trends – Bottom Fishing and then select “BF ‐ =S, =B.”

3. Run Search on 02/19/16


QuickTest Results

5

Explosive Profits

Trend Favorites

• New Buys

• New Sells

• Uptrending ETFs

• Down Hill Racers

• Power Play: Double Ups

• BF ‐ <>B, <>B, =B, =B, =B, =B

Explosive Profits

Delta

• Finds stocks with the highest magnitude of percentage change over a defined period of days or weeks.

• Can be used on almost any parameter contained within Stock Viewer.

• Can be run on Stocks, Industries, Sectors or Watch Lists individually or in combination with other searches.

6

Delta – Case Study

Date: 02/19/2016


Search: Rising Business Sectors


2. Click on Delta Searches – Stocks folder, then Rising Business Sectors.



QuickTest Results

7

Explosive Profits

Favorite Delta Applications

• The best way of observing internal market rotation is by noting the percentage changes in RT of Business Sectors and Industry Groups over various time periods.

• Should be used in conjunction with the RT Rank Analysis of Business Sectors and Industry Groups.

• Can be run on Stocks, Industries, Sectors or WatchLists.

VectorVest

ProTrader Graphs9:45 AM – 10:30 AM

1

ProTrader Graphs

Technical Analysis Indicators

VectorVest 7 includes eleven of the most frequently used technical analysis indicators in addition to three types of moving

averages and several popular drawing features.

ProTrader Graphs

Drawing Features

• Support & Resistance

• Lines

• Gann Fans

• Fibonacci Arcs

• Fibonacci Fans

• Fibonacci Retracements

• Fibonacci Time Zones

2

Support & Resistance Chart Example

ProTrader Graphs

Top Technical Indicators for Trending Markets

• Trend lines

• Moving averages

• Moving Average Convergence – Divergence (MACD)

3

ProTrader Graphs

Drawing Trend Lines on Charts

• Up trend – a straight line that connects a series of lows

• Down trend – a straight line that connects a series of highs

Up Trend Chart Example

4

Down Trend Chart Example

ProTrader Graphs

Moving Averages

• Purpose – prediction of the real direction of price movement

• Graphing – plotted on same chart as price

5

Varying Length for SMA (10,50 & 200 Days)

Moving Averages: 20‐Days(SMA=Circle, EMA=Triangle)

6

ProTrader Graphs

Moving Average Convergence – Divergence (MACD)

• Developed by Gerald Appel

• Integrates positive features of both:– Oscillators

– Trend following

• MACD – can measure momentum and indicate a trend

PorTrader Graphs

MACD (cont.)

MACD indicator consists of two lines derived from three EMAs• MACD line – difference between a fast EMA (e.g., 12‐day) and a slow

EMA (e.g., 26‐day)

• Signal line – an EMA (e.g., 9‐day) of the MACD line

7

ProTrader Graphs

MACD Graph

• Two lines:– MACD line

– Signal line

• Histogram – MACD line minus the signal line

ProTrader Graphs

MACD Crossover Interpretation

• Buy signal – when MACD rises above its signal line

• Sell signal – when MACD falls below its signal line

8

MACD Chart Example

ProTrader Graphs

Bollinger BandsDescription:

• The purpose of Bollinger Bands is to provide a relative definition of high and low.

• By definition prices are high at the upper band and low at the lower band.

• The bands indicate overbought and oversold levels.

9

ProTrader Graphs

Bollinger BandsCalculation:

• Middle Bollinger Band = 20‐period simple moving average

• Upper Bollinger Band = Middle Bollinger Band + 2 standard deviations (20 Period)

• Lower Bollinger Band = Middle Bollinger Band ‐ 2 standard deviations (20 Period)

ProTrader Graphs

Bollinger BandsInterpretation:

• Contracting band warns of an upcoming breakout in the market.

• A trend that hugs a band indicates a strong trend that will likely continue.

• A move outside the band indicates a statistically unusual price trend that is likely to reverse.

10

ProTrader Graphs

Bollinger Bands vs. Envelopes

Bollinger Bands:

• Based upon standard deviations.

Envelopes:

• Based upon a percentage of a moving average.

Bollinger Bands Example Chart

VectorVest

Break

10:30 AM – 10:45 AM

VectorVest

ProTrader Searches

10:45 AM – 11:30 PM

1

ProTrader Searches

Selected ProTrader Searches

• Moving Average Crossovers

• MACD

• Star Search

ProTrader Searches

Moving Average Crossover

• Classic technical analysis technique

• Finds stocks where the short‐term moving average has crossed the long‐term moving average

• Can require both moving averages to be moving in the same direction– Only recommended for lengths <= 20 days

2

ProTrader Seaches

Moving Average Crossover Signals

• Bullish signal – fast (short‐term) moving average crosses above the slow (long‐term) moving average

• Bearish signal – fast (short‐term) moving average crosses below the slow (long‐term) moving average

Moving Averages

There are 3 types of Moving Averages:

• Simple Moving Average (SMA)

• Exponential Moving Average (EMA)

• Weighted Moving Average (WMA)

3

Moving Averages

Simple Moving Average

• Arithmetic Average:

‐ Sum the prices (e.g., close) for each day in the look back window

‐ Divide sum by the number of days in the look back window

• Simple Moving Average – the simple average of prices in a fixed‐length moving window

Moving Averages

Exponential Moving Average

• Description:

‐ The EMA assigns one weight (between 0 and 1) to today’s price and the complement of that weight to yesterday’s EMA

‐ The smoothing weight value is calculated based upon the number of days

4

Moving Averages

Weighted Moving Average

• Description:

• WMA assigns different weights to the prices in the look back window

‐ Most recent prices are considered most important

‐ Largest weights assigned to most recent prices

Moving Averages

20 day WMA – Blue20 day EMA – Red20 day SMA – Green

5

Sensitivity of Moving Averages

Type of Moving Average Sensitivity

Simple Least

Exponential Medium

Weighted Most

Case Study: 12 & 26 EMA Crossover (Bullish)

Date: November 11, 2016

Situation: Green Light in the Price Column.

Search: 12 & 26 EMA Crossover ‐ Long


2. Click on Trade Like a Pro folder, then 12 & 26 EMA Crossover –Long.


4. Graph the top 10.

6

12 & 26 EMA Crossover Example Chart (Bullish)

Case Study: MACD Crossover (Bullish)

Date: November 11, 2016.Situation: Green Light in Price Column.Search: MACD Crossover – Long

1. Click on the UniSearch tab. 2. Click on the ProTrader Folder, then click on MACD Crossover

– Long. 3. Run Search on 11/11/16.4. Graph the top 10.

7

Bullish MACD Crossover Example Chart for (NVDA)

Combining Technical Indicators

The Star Search technique combines the DPO with Bollinger Bands and creates “Trading

Lanes” to help manage your trades.

8

Star Search (Bullish)

1. Enter trade when price breaks above upper Bollinger Band and 20 day DPO turns bullish.

– 20 day look back, 1 Standard Deviation (Bollinger Bands)

2. Stay in the trade as long as price stays in the “Fast Lane.”

3. You may close the position once the price crosses into either the middle or right hand lanes or the 9 day DPO crosses bearish.

Case Study: Star Search (Bullish)

Date: November 11, 2016.Situation: Green Light in Price ColumnSearch: Star Search

1. Click on the UniSearch tab. 2. Click on the ProTrader Folder, then Star Search.3. Run Search on 11/11/16.4. Graph the top 10. 3 month graphs.

9

Star Search Example Chart for (FNSR)

VectorVest

Situational Investing

11:30 AM – 12:15 PM

1


Recognizing what the market is doing and implementing strategies that are consistent with

that behavior.


Common Strategies

1. Buy and Hold Stocks in all Markets.

2. Sell Weak Stocks in Down Markets.

3. Buy Stocks Long in Up Markets and Sell Stocks Short in Down Markets. “Riding the Wave.”

2


Buy and Hold Stocks in All Markets

Buy 20 ‘Long‐term Winners – RS Desc.’ on 05/14/96,

Hold to 12/23/16.

368.18% Total Gain,

Over 17% ARR

Long‐Term Winners – RS Desc.

3


Sell Weak Stocks in Down Markets

Sell 10 ‘Worst Stocks Over $20.00’ Short on C/Dn’s from

11/1/07 to 3/10/09.

Cover All on C/Up’s.

Total Gain = 143.64%

Compounded RR = 92.92%

Not Recommended in Bull Market.

Worst Stocks Over $20.00

4


Riding‐the‐Wave

Buy Stocks Long on Up Waves.

Sell Stocks Short on Down Waves.


Riding The Wave

SFS CC – S&P500 Winners/Vern’s Vultures

Trading Template from 12/18/12 to 10/11/16.

Total Gain = 135.25%

Annualized RR= 35.46%

Compounded RR = 25.15%

5

SFS – CC S&P500 Winners/Vern’s Vultures

VectorVest

LUNCH

12:15 PM – 1:15 PM

Day Two

Afternoon Session

VectorVest

Worry‐Free Investing

1:15 PM – 2:15 PM

1

Worry‐Free Model Portfolios

What is Worry‐Free Investing?

Worry‐Free Investing

is the

SAFEST, SUREST, EASIEST

Way to Make Money in the Stock Market

Worry‐Free Portfolio Performance

Up Over 708%

2

WFI Model

Relative Safety (RS)

An Indicator of Risk

Consistency and Predictability of Financial Performance are the Primary Factors in Assessing Relative Safety.

RS is the key to Worry‐Free Dividends!

3

Relative Safety (RS)

Worry‐Free Dividends

4


The Benefits of Dividends from Worry‐Free Investing

• 177 - trades placed since 5/17/1996

• 551 - Dividend Deposits as of 9/30/2016

• $54,005.79 - Total Dividend Income

• $864,382.61 - Total Value, with Dividends (5/17/96 – 10/4/16)


Learn to Trade Options

An Options Collar can be used to secure your portfolio during market corrections and still

allow the dividend payouts to keep on rolling in.

5

WFI Model

VectorVest

Seven Secrets to Making Money with

VectorVest

2:30 PM – 4:00 PM

1

The First Secret

Keep It Simple

Keep it Simple

Buy Safe,

Undervalued Stocks,

Rising in Price

2

Keep it Simple

The VectorVest System

• Relative Value, RV, is a Long‐Term Indicator of Value.

• Relative Safety, RS, is the Missing Link.

• Relative Timing, RT, is the Most Important Indicator.

• Value‐Safety‐Timing‐Vector, VST is the Master Indicator.

Keep it Simple

Build a WatchList of Your Stocks

Provides the Fastest, Easiest Way to Learn VectorVest.

Takes the Guesswork Out of Managing Your Portfolio.

Saves Hours and Hours of Valuable Time.

3

Keep it Simple


Sell Low VST‐Vector Stocks Going Down in Price.

Buy High VST‐Vector Stocks Going Up in Price.

The Second Secret

Learn to Read Graphs

4


A Picture is Worth a Thousand Words

Graphs Don’t Lie

Graphs Reveal a Stock’s DNA.

What You See is What You Get.

Favor Smooth Price Patterns,

Rising from Lower Left to Upper Right Side.


Standard Graphs

Stocks, ETFs and WatchLists

Industry Groups and Business Sectors.

5


Market Timing Graphs

The Market Timing Graph,

DEW Timing Graphs


Special Graphs

Midas Touch,

Performance Graphs,

Investment Climate Graphs.

6

The Third Secret

Heed the Color Guard


The Daily Color Guardis a

Precise System of Timing the Market.

It is so Important,it’s Located at the Top of the Home Page.

7


Functions Like a Traffic Light

Green is Bullish, it’s OK to Buy, Yellow is Neutral, Caution is Advised,Red is Bearish, do not Buy any Stocks.

THE COLOR GUARD DOES NOT TELL YOU

WHEN TO SELL.


Watch the Daily Color Guard Reports

8

The Fourth Secret



All the Information You Need to Make Money

with VectorVest is on the

Home Page.

9

The Fifth Secret

Learn to Trade Options

Why Trade Options?

Options can be used to:

1. Provide Leverage,2. Reduce Risk,3. Lower Costs,4. Generate Income,5. Increase Alternatives,

but they must be used Properly.

10

Provide Leverage

Margin accounts Provide 2 to 1 Leverage,

and increase both risk and reward.

Options Provide 10 to 1 Leverage,

and reduce risk when used properly.

Reduce Risk

Use less Capital to control an asset.

Buy Put Options to protect single stock positions.

Use Option Collars to protect entire Portfolios.

11

Lower Costs

Sell Covered Call Options.

Sell Put Options on stocks you

would be willing to buy.

Generate Income

Sell Covered Call Options.

Sell Credit Spreads.

12

Increase Alternatives

Make money whether a stock goes up or down.

Buy Straddles

(Long Calls and long Puts at the same Strike Price and the same Expiration Date).

The Sixth Secret

Stay Informed

13

Stay Informed

Keep Up with New Developments

1. Read VectorVest Views.

2. Watch the Daily Color Guard Report.

3. Watch our Special Presentations.

4. Watch our Educational Webcasts.

The Seventh Secret

Be an Optimist!

14

Mission Statement

Our Mission is to provide the best stock market guidance available

anywhere at any price.

VectorVest

Important Contact Information

Sales: 1‐888‐658‐7638

Seminars: 1‐800‐231‐0110

Product Support: 1‐888‐658‐7638

E‐mail: [email protected]

2017, Copyright VectorVest, Inc. · PDF fileCovers the core principles and strategies...

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Transcript of 2017, Copyright VectorVest, Inc. · PDF fileCovers the core principles and strategies...