VectorVest

Overall Rating

Rating: 3.1/5. From 31 votes.
Please wait...
3.1
Rating from 141 votes
If you’ve subscribed to VectorVest, please click the stars below to indicate your rating for this newsletter, and please share any other feedback about your experience using the comment box below.

Investment Performance

Rating from 45 votes
Rating: 3.3/5. From 45 votes.
Please wait...
Your vote
  • 5 Stars 12 Votes
  • 4 Stars 14 Votes
  • 3 Stars 1 Votes
  • 2 Stars 10 Votes
  • 1 Stars 8 Votes

Quality Of Writing/Analysis

Rating from 32 votes
Rating: 3.1/5. From 32 votes.
Please wait...
Your vote
  • 5 Stars 6 Votes
  • 4 Stars 9 Votes
  • 3 Stars 6 Votes
  • 2 Stars 5 Votes
  • 1 Stars 6 Votes

Value For Price

Rating from 33 votes
Rating: 2.7/5. From 33 votes.
Please wait...
Your vote
  • 5 Stars 3 Votes
  • 4 Stars 7 Votes
  • 3 Stars 8 Votes
  • 2 Stars 7 Votes
  • 1 Stars 8 Votes

Customer Service

Rating from 31 votes
Rating: 3.1/5. From 31 votes.
Please wait...
Your vote
  • 5 Stars 8 Votes
  • 4 Stars 3 Votes
  • 3 Stars 9 Votes
  • 2 Stars 5 Votes
  • 1 Stars 6 Votes
guest

12345

This site uses Akismet to reduce spam. Learn how your comment data is processed.

76 Comments
Inline Feedbacks
View all comments
csprings
Member
csprings
April 27, 2009 4:32 pm

I have been a subscriber for about 2 months now, so I am really still in the evaluation phase. I started an evaluation after reading a number of positive comments about it in the stockgumshoe forums. It performed the best of the systems I track during the recent March-April rally, and it appeared to perform decently in 2008.

VectorVest is mostly a market timing system using mostly trailing indicators. It is going to get you in and out of the market about 1-2 weeks after each major market inflection point. It’s not going to get you in/out right at the bottom or top. Combined with stops though, you will keep most of your profits on the way down. It determines market movement by price action of its combined database of stocks, 8,300 or thereabouts that it tracks.

Along with tracking price action to determine a market direction, it assigns a value to each stock. The value is based somewhat on fundamentals. (I’m not sure how much to believe the VectorVest ‘value’ for a stock, but it is a rough gauge of what the fundamentals of the stock say it should be worth, run through a fancy formula)

The basic strategy is to pick undervalued stocks when the market goes up, reverse when it goes down. They provide a bunch of variations on that theme with different stock scans and a simple simulator. They will test a number of strategies for current market conditions and advise subscribers of half a dozen filters that will probably work. Each subscriber picks which exact strategy and list of stocks to go with when the market trend say ‘buy’.

They found early on that when they tried to make it very simple and say exactly what to buy when, it didn’t work, too many people would pile on to the same stock at the same time. Each subscribor now takes more responsibility for their choices. I like it that way, but not everyone does.

This system appears to have gotten all of the major market moves that have lasted over a month. It is mostly based on measuring recent moves and doesn’t get caught up with pre-conceieved notions of what the market OUGHT to be doing. All of the recommendations are kept on line, so you can go back and check for yourself whether what they were advising at key dates would have worked for you. However, going through that exercise is quite a bit of work, and I haven’t done it completely yet.

I suspect that if we get into a protracted volatile/sideways/range bound market, this system isn’t going to do quite as well, it can get whipsawed with its trailing indicators. It’s not a good day trading system and relies on trends that will last a month or two so you can get a decent bite out of the middle. Also, it doesn’t have any way of assigning value to ETFs, so it’s ability to predict ETF movement appears a bit simplistic; it was designed more for individual stocks.

at about 600/year it’s not cheap. I don’t like that they sell so many add-on packages. The base package charts their proprietary indicators. If you want a more standard charting capability, with MACD and all the ‘normal’ technical indicators, you have to pay an extra $400-$500 fee. If you want canadian markets, asian markets, extra fee, options analysis, extra fee. It tracks the foreign stocks that are listed through our normal exchanges though.

Since this system did the best in our 2009 spring rally, which many gurus missed or didn’t believe was possible, I’m going to stick with it for a year.

BTW, they also keep a watchlist of stocks that appear in the popular newsletters, similar CarrotTrader, so you can run the filters against them as well.

One problem they allude to is that some subscribers have trouble pulling the trigger when the indicators say ‘buy’. They want an additional week of confirmation, but since these are already trailing indicators, those folks end up chasing the move and don’t do very well.

One final thing, I agreed to put the whole year on my AmEx so I would get the 5 CD training set for free, which is this 2-day seminar they normally put on for 150-200 bucks. If I hadn’t gone through the training, I don’t think I would have figured out enough of the ins and outs of all their strategies and filters to know what to do, but they don’t send you the training CDs until the end of your free 5 week evaluation period. So forget about the free period, it’s nice but you’re probably not going to figure it all out unless you bite the bullet and pay for a year. My opinion.

Add a Topic
5971
Add a Topic
5971
Add a Topic
5971
Max
Guest
Max
April 29, 2009 9:22 am

Very complicated, expensive, must buy additional classes etc. and I am not sure how well it really works. And in their advertising they don’t show one whipsaw their system created this (09) spring. They only show the profitable trades… this makes me think that if they are not honest with their results; what else they are not honest about?

Rob L.
Rob L.
May 1, 2009 8:08 am

I would liken VectorVest to a Ferrari. If you hand the keys to someone who doesn’t know how to successfully apply technical analysis, you’re going to hear the gears grind, and you might even see a crash. In the hands of someone who already knows what they’re doing, on the other hand, VectorVest is a godsend, an excellent source of data.

Investors looking for “stock picks” would be well advised to look elsewhere. Investors who are looking to pick their own, on the other hand, will find a plethora of fundamental and technical data here that make the job easier (notice I didn’t say easy). Customer service is excellent, and backed by a number of local workshops that assist you as you are getting to know the software.

Add a Topic
5971
R Fraser
Guest
R Fraser
May 1, 2009 1:47 pm

I had an experience with VectorVest that has bothered me since it happened, and I’m glad to finally have a forum to warn others. (Actually, my comments somewhat parallel Max’s with respect to honestly and trustworthiness.)

I have received VV ads for some time, and even signed up for the 5-week trial, although I never got around to using it, so I express no opinion as to whether or not the stock picking and market timing elements of the system work.

My direct experience concerns their ads. I read their ads very carefully and found a glaring error in their claimed numbers. I don’t have the ads at hand, so the numbers I’m going to cite are approximations, but they are pretty close to what the real numbers are. In essence, VV claimed that over a 10 year period, following one of their strategies would have led to an account balance that grew over 1000%, giving the investor annual returns of about 100% per year. The problem is that multiplying an account balance 10 times over 10 years is NOT an annualized return of 100%; instead, it is an annual return of about 26%. (This is the difference between a geometric average and an arithmetic average; geometric averages must be used to compute and compare returns on investments, NOT arithmetic average. The differnce can become huge over time as this example illustrates–the fair number is 26% per year, not 100% per year.) I spent some time calling VV and talking to them, explaining that the 100% number they were claiming was erroneous and must be changed; they promised they would look into it and correct their advertising. They never changed anything can I continued to receive their advertising over many months and years with the misleading numbers. As far as I know, they are still using this phony methodology to compute their returns. I even filed a complaint with the FTC (Federal Trade Commission), but they did nothing about it. (Aside: don’t ever rely on the Federal government to look out for investors or consumers–they rarely do anything.)

Moral to the story: VV uses phony numbers, and won’t change them even when it’s pointed out to them. If SOME of their numbers are phony, why would anyone buy their product, not being able to trust them to do the right thing? Like MAX above, when I find someone lying to me one time, I go elsewhere. Do YOU want to gamble on this company with YOUR money?

Add a Topic
5971
Add a Topic
285
Abbey Payton
Guest
Abbey Payton
August 29, 2020 6:49 pm
Reply to  R Fraser

Hi! My dad happens to be the CEO of VectorVest, and I would like to please ask you to give me an updated report of any issues you have with VectorVest, as I think that if what you are saying is true, my Dad should change it. I will make sure to make any changes you might sugest. I will also point out that the FTC did in fact contact us 11 years ago, but due to issues with an employee, everyone assumed that it was said employee making an unfounded claim. After expressing this to the FTC, they made no further comment, leading my father to believe that he was right.

I hope this helps!

JOHN POOL
Guest
JOHN POOL
May 1, 2009 4:25 pm

I LOVE VECTOR VEST AND WOULD NOT BE WITHOUT IT AS IT IS THE BEST WAY I HAVE EVER FOUND TO SELECT STOCKS OVER THE LAST SEVERAL YEARS.

topwoman
Member
topwoman
May 1, 2009 6:57 pm

As csprings has covered the ins and outs of the system, I won’t repeat an explanation here. I have been a subscriber since late 2005, and have been very pleased with the service. In that period, I bought and held 3 stocks. ALL 3 were winners for me – 2 up well over 100%, and one up 35%. More important, VV signalled a general sell in time for me to preserve all gains. Since June, I sat in cash and watched as the market tanked.

As we decided to invest in Real Estate this fall, I have not gone back into the market, so can’t comment on VV performance since July.

This tool is powerful.

The downside – one must invest a lot of time learning the system, and take frequent (free) tutorials in order to use the strategy which they deem most suitable for the week. For people looking for a stock picking system — sorry, folks, this one is not for you. On the other hand, if you are willing to do your homework, you will be handsomely rewarded. Pricy it is – but with the real potential of a very quick payback.

BTW, what drew me to this system was a student’s study of several systems – concluding that VV was the “best of breed”.

Add a Topic
409
Add a Topic
5971
Roonie1942
Irregular
Roonie1942
May 2, 2009 12:57 am

I have used Vectorvest for three years. The timing advice for getting in and out of the market has made me a winner in both my 401K at work as well as on a roll over IRA. As I was a loser after the tech bubble popped (letting someone else manage my funds for me) Vectorvest has allowed me to successfully watch my $$$ grow! I would never be without my friends at Vectorvest!

Warren
Guest
Warren
May 2, 2009 7:05 am