VP review

Timaru69, London ex New Zealand

http://www.forexpeacearmy.com/public/review/www.tradertech.com?page=3

2007-12-06

Ok not too sure where to start on this one but will give you my experience.

Initially purchased VP software in 2004 after asking a lot of questions and doing as much research as I could based on the information I gather. The sales tactics utilised at the time by the company where typical of most hard sell tactics you would find at an estate agents or a car sales yard.

Initially I was very sceptical but took the plunge and paid for 69 mkts at around $8,000.

I then proceeded to spend a lot of time forward testing various strategies includingthe "when the blue crosses the black line" (my results indicated breakeven after about six months)

After about 12 months I concluded the following

1. VP is no good for daytrading, I know lot's of people are trying to use it for FX daytrading I believe that in the long run their systems will fail. Using indicators based on EOD data is not a clever way to trade IMHO. This is no fault of the software only the people using the software for something that it wasn't designed for.

2. As VP uses EOD data for it's calculations of it's indicators then it's follows that your style of trading is going to be swing and or position trading. If you don't want to do this then don't buy the software.

3. It would then follow that you need good money management rules and the discipline to follow those rules. This is where nearly all people fail because they have neither, once again this is not a problem with the software.

4. As we are looking at daily data then it also follows that signals are going to be less frequent therefore it makes sense to follow more than one market, it also makes sense to diversify the market selection so you aren't putting all of your eggs into one basket. Here is an example market portfolio

10 yr T Note
Soybean Complex (Soybean/Soymeal/Oil)
Corn
Lean Hog
Live Cattle
GBP FX
AUD FX
S&P Emini
Light Crude or Emini Light Crude
Sugar No.11
Cotton
Orange Juice
Gold

Armed with the above I then spent a good 18 months (in my spare time) working on various systems, backtesting and forward testing them before I settled on one that I am confident works across all VP markets.
(asr: this 18 months back testing is just to test various VP systems of he coded , NON-VP systems are not in this test , this is what this guy mean )

5. So now we have a piece of software that utilises EOD to give us signals , we have a target set of markets, we have a money management plan (and hopefully the discipline to follow it) all we need now is some money to trade, and here is the crux of the matter. I believe that in order to trade a diversified set of markets using an EOD system you need as a minimum $100,000. I am sure that plenty will disagree with me but the simple fact is that you need this account size to be able to trade a diversified range of markets while still maintaining good money mgmt. Also consider that if a VP package costs $3k to $18k then that also needs to factored in as a cost of trading, this cost of trading should not in turn wipe out a large % of your account. A good example of this a guy I know who wanted to spend $3k on VP forex mkts but he only had a $3k account to trade. Sorry but no software is going to make you profitable on such a small capital base.

My system that utilises some of the VP indicators (not the neural index) has returned 160% on a $100k account risking a max of $3,000 a trade (3% starting account size). Strike rate is about 50% with a R:R of between 2.5 to 3:1. 90 trades to date over a 9 month timeframe

I have tried to replicate the VP indicators I use and to date have had no success. I have come to admit that there is value to be had. I have started looking at individual stocks and was considering adding some to my portfolio as the system I use appears to work well on stocks.

In my view the Software can be used to make good returns but it takes more than just waiting for a blue line to cross a black, you need all of the above points, be prepared to to a lot work and research and above all strong money management and the discipline to stick your rules. People are labelling it a "scam" because they have no knowledge of what the markets are about and they are blinded by what they want to believe rather than what is.

The software is pricey and somewhat expensive for what it is and requires a lot of work , it is not a standalone trading system but a tool.

My rating of 3 is given based the fact that the software is good but it is expensive and is not for a new trader with no experience of the markets.

Good Luck