Special Notice. 2017, Copyright VectorVest, Inc.

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2 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.

3 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. VectorVest RealTime Derby The VectorVest 7 Derby works with VectorVest RealTime to offer a revolutionary, new approach to real-time trading. It runs over a hundred and eighty strategies simultaneously to immediately identify the best performing strategies at any given moment of the day. The Derby ToteBoard analyzes and compiles the results in four different analysis modes day trading, Buy and Hold, Vary the Start Date and Sliding Window to point you straight to the most consistent, money making strategies for your trading style. Available for an annual fee of $1,095. VectorVest RoboTrader - Eliminate Emotions from Your Trading - What if you could trade your plan the way it was intended? This powerful tool makes it much easier to manage your portfolio by keeping your emotions out of the way improving your investment success. RoboTrader watches your portfolio around the clock, in real-time, so you don t have to devote your time and attention. When it s time to make a trade the RoboTrader will send you an alert. Simply approve the trade and RoboTrader will place it with your broker directly from VectorVest. Includes AutoTimer FREE! You can add RoboTrader to your subscription for $99/month or $50/month with a subscription to the Derby. 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. VectorVest ProTrader v7.0 Searches ProTrader 7 Searches runs over 28 built-in technical searches which can be easily customized, or point and click to build your own. If you're tired of searching through endless charts looking for that golden opportunity, ProTrader 7 Searches is the tool for you! Available for a one-time fee of $495* or FREE with a subscription to VectorVest RealTime. 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.

4 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. VectorVest WatchDog VectorVest s Watchdog monitors the entire market or your selected WatchLists to instantly alert you to specific technical signals. Choose from MACD or Support & Resistance criteria and receive alerts in the software as well as by /txt so you never miss a potential trade again! Available for a one-time fee of $495* or FREE while subscribed to VectorVest RealTime. VectorVest Options Course 4-CD Set Learn how to increase your portfolio s profit potential, while reducing your risk. This course begins with a thorough introduction to options terminology, characteristics and pricing and teaches you the ins-and-outs of the most effective options strategies. Each strategy is broken down in detail using case studies and profit & loss analysis which are illustrated using the Options Analyzer. Over 9 instructional hours! Available for only $995. PLUS, if you purchase this video set through VectorVest, you may attend a live VectorVest Options Course for only $295.

5 Special Book Pricing for Seminars Only *Up to 50% off list prices Title List Seminar 1. A Beginner s Guide to Short-Term Trading: Maximize Profits in 3 Days to 3 Weeks-Turner $16.95 $13.56 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. 2. Encyclopedia of Chart Patterns - Bulkowski $ $96.00 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. 3. Get Rich with Options Lee Lowell $45.00 $36.00 This book gives you the basic foundation on the hows and whys of options trading. It will teach you th four best option strategies that will increase your wealth like no one else will. 4. Hit and Run Trading Updated - Cooper $ $80.00 This book teaches readers different methods that can be used for day-trading and swing trading. 5. Little Book of Trading - Michael W. Covel $19.95 $15.96 The Little Book of Trading teaches the average person rules and philosophies that winners use to beat the market, regardless of the financial climate. 6. Options Made Easy: Your Guide to Profitable Trading - Cohen $39.99 $31.99 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. 7. Options Playbook Brian Overby $35.00 $28.00 The Options Playbook was created to demystify option trading and teach different option plays for all market conditions. 8. Reality Driven Investing: Statistics That Make a Difference Donald L. Hinman $24.99 $19.99 This book presents an easy-to-understand guide for scouting good stocks and how to identify them. 9. Stock Market Profits: Seven Simple Secrets Drew Sands $17.91 $14.33 This is a short, easy-to-understand book for the stock market beginner, winner or loser that contains must-have information 10. Stocks, Strategies & Common Sense Bart DiLiddo, PhD This book contains the foundation and core concepts for the VectorVest Stock Analysis and $19.95 $9.95 Portfolio Management System. Dr. DiLiddo is the author of the book and founder of the VectorVest Advisory 11. The Bible of Options Strategies: The Definitive Guide for Practical Trading Strategies $65.99 $52.79 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. 12. The New Savage Number - Savage $16.95 $13.56 This book illustrates strategic guidance steps along with hands-on techniques that are essential for one to plan for a successful retirement. 13. The New Sell & Sell Short - Elder How to take profits, cut losses, and benefit from price declines. Expanded 2 nd Edition $39.99 $ 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

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7 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

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9 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

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11 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

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13 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

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15 Day One Morning Session

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17 VectorVest The VectorVest System of Analyzing and Ranking Stocks 9:15 AM 10:00 AM

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19 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. 1

20 VectorVest VectorVest believes The stock market is driven by Earnings, Inflation and Interest Rates. S&P500 Earnings 2

21 How the Market Works Earnings Stock Value goes up with rising earnings. S&P 500 P/E vs. CPI: Jan to Dec (20-week average) S&P 500 P/E Ratio CPI Percent Change

22 How the Market Works Inflation Stock Value goes up with falling inflation. 16 S&P 500 Earnings Yield vs. 30-Year T-Bond Interest Yield: Jan to Dec EY and IY (in %) EY 4 2 IY

23 How the Market Works Interest Rates Stock Value goes up with falling interest rates. How the Market Works Stock Value goes up when: Earnings go up, Inflation goes down and Interest Rates go down. 5

24 How the Market Works How Do Investors Decide where To Put Their Money? Stocks vs. Bonds How the Market Works Money Goes Where Money Grows EY vs. IY Earnings Yield vs. Interest Yield 6

25 Ratio of S&P 500 Earnings Yield and 30-Year Bond Interest Yield: Jan to Dec EY / IY How the Market Works The Yield Premium Ideally: In Reality: Where: EY = IY EY = IY + YP YP = Yield Premium 7

26 How the Market Works Inherent Value If: Then: Or: And: EY = IY + YP 100 x (E/P) = IY + YP 100 x (E/V) = IY + YP 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 8

27 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)/( )] V = $ x Sqr (1.58) V = $ /Share* VV = $127.43/Share *12/16/2016 9

28 Stocks Ranked by Value Company Symbol Exch. Price Value Disney (Walt) DIS xn NVIDIA Corp NVDA xo Cyberoptics CYBE O Juno Thera Inc JUNO xo *Analysis as of 12/16/2016 Relative Value An Indicator of Long Term Price Appreciation Potential Price, Value, Earnings Growth, AAA Corporate Bond Rates and Risk are used to compute Relative Value. 10

29 Stocks Ranked by RV Company Symbol Exch. Price Value RV Cyberoptics CYBE O NVIDIA Corp NVDA xo Disney (Walt) DIS xn Juno Thera Inc JUNO xo *Analysis as of 12/16/2016 Relative Safety An Indicator of Risk Consistency and Predictability of Financial Performance are the Primary Factors in Assessing Relative Safety. 11

30 Stocks Ranked by RS Company Symbol Exch. Price Value RV RS NVIDIA Corp NVDA xo Disney (Walt) DIS xn Cyberoptics CYBE O Juno Thera Inc JUNO xo *Analysis as of 12/16/2016 Relative Timing An Indicator of Short Term Price Trend The Direction, Magnitude and Dynamics of Price History are used to determine Relative Timing. 12

31 Stocks Ranked by RT Company Symbol Exch. Price Value RV RS RT NVIDIA Corp NVDA xo Disney (Walt) DIS xn Cyberoptics CYBE O Juno Thera Inc JUNO xo *Analysis as of 12/16/2016 VST Vector The Master Indicator VST Vector combines RV, RS and RT into a single comprehensive indicator. 13

32 Stocks Ranked by VST Company Symbol Exch. Price Value RV RS RT VST NVIDIA Corp NVDA xo Disney (Walt) DIS xn Cyberoptics CYBE O Juno Thera Inc JUNO xo *Analysis as of 12/16/2016 Stop Price An Indicator of When to Sell or Cover a Position An adjusted 13 Week Moving Average of Closing Prices is used to compute Stop Prices. 14

33 Stocks Ranked by Stop Company Symbol Exch. Price Value RV RS RT VST Stop Disney (Walt) DIS xn NVIDIA Corp NVDA xo Cyberoptics CYBE O Juno Thera Inc JUNO xo *Analysis as of 12/16/2016 Recommendation The Bottom Line All Factors are Considered in Making a B, S, H Recommendation. 15

34 Stocks Ranked by REC Company Symbol Exch. Price Value RV RS RT VST Stop REC Disney (Walt) DIS xn B NVIDIA Corp NVDA xo B Cyberoptics CYBE O H Juno Thera Inc JUNO xo S *Analysis as of 12/16/2016 Buy, Sell or Hold Criteria Buy Sell Hold (1) Price > Stop Price, (2) VST > 1, (3) RT > 1 and (4) Price must be diverging away from Stop Price Price < Stop Price Price > Stop, but any of the other three factors needed to receive a Buy are not met. 16

35 VectorVest Stock Viewer and Graphs 10:00 AM 10:45 AM

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37 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 Value Intrinsic Value RV Relative Value RS Relative Safety RT Relative Timing VST Value, Safety, & Timing REC Recommendation GRT Earnings Growth EPS EY P/E GPE SPS P/S CI Earnings/Share Earnings Yield Price/Earnings Ratio Growth/(P/E) Ratio Sales / Share Price/SPS Comfort Index 1

38 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 2

39 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. 3

40 Stock Viewer Default Column Layout Default Column Sort Drop Down Calendar Stock Viewer Format 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. 4

41 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 5

42 VectorVest Graphs VectorVest Graph Types Stock Industry Sector Market Timing Performance VectorVest Graphs Default Stock Graph Layout Price 40 Day SMA (Price) RT 6

43 VectorVest Graphs Displaying Graphs Multiple Tabs Detaching Windows Scrolling Time Frames MultiView VectorVest Graphs Additional Graphing Features Drawing Cursors Zoom 7

44 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. 8

45 VectorVest Break 10:45 AM 11:00 AM

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47 VectorVest Business Sectors and Industry Groups 11:00 AM 11:45 AM

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49 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. 1

50 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 2

51 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? 3

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53 VectorVest Power of the VectorVest Homepage 11:45 AM 12:15 PM

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55 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 always Market Timing. Power of the Homepage The Color Guard The Color Guard provides a terse, accurate analysis of Market Direction. 1

56 Power of the Homepage Customize Your Homepage You can use Gadgets to put the information you want on your Homepage. Power of the Homepage Exploit the Home Page All the Information You Need to Make Money with VectorVest is on the Home Page. 2

57 VectorVest SERVED LUNCH 12:15 PM 1:15PM

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59 Day One Afternoon Session

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61 VectorVest Managing Your Portfolio 1:15 PM 2:00PM

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63 Managing Your Portfolio Good portfolio management starts with buying the right stocks. Stocks, Strategies & Common Sense, p59. Managing Your Portfolio Analyze Your Stocks Use Stock Analyzer to 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. 1

64 Managing Your Portfolio 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. Managing Your Portfolio 2

65 Managing Your Portfolio Build a WatchList WatchLists allow investors or traders to apply the power of rank analysis to the securities that interest them the most. Managing Your Portfolio 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. 3

66 Managing Your Portfolio 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 Managing Your Portfolio 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. 4

67 Managing Your Portfolio 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. Managing Your Portfolio Prudent Investors should buy high VST, B rated stocks, in rising Industry Groups, in Rising Markets. 5

68 Managing Your Portfolio 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. Managing Your Portfolio 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. 6

69 Managing Your Portfolio 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. Managing Your Portfolio 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. 7

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71 VectorVest Using UniSearch to Enhance Your Portfolio 2:00 PM 2:45PM

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73 Strategy Selection Things to Consider What is my primary goal? Prudent or Aggressive? Long Term or Short Term? Investment Styles & Strategies 1

74 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. 2

75 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. 3

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

77 Prudent Case Study Date: 02/19/2016 Situation: First green Light in Price Column off a bottom Search: Bill s Best Bets 1. Click on the UniSearch tab. 2. Click on Searches Prudent folder, then Bill s Best Bets. 3. Run Search on 02/19/ QuickTest to 06/17/16 the first C/Dn. QuickTest Results 5

78 Aggressive Case Study Date: 02/19/2016 Situation: First green Light in Price Column off a bottom Search: Bottle Rockets 1. Click on the UniSearch tab. 2. Click on Searches Aggressive folder, then Bottle Rockets. 3. Run Search on 02/19/ QuickTest to 06/17/16 the first C/Dn. QuickTest Results 6

79 Speculative Case Study Date: 02/19/2016 Situation: First green Light in Price Column off a bottom Search: Jubilee 1. Click on the UniSearch tab. 2. Click on Searches Speculative folder, then Jubilee. 3. Run Search on 02/19/ QuickTest to 06/17/16 the next C/Dn. QuickTest Results 7

80 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. 8

81 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 9

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83 VectorVest Break 2:45 PM 3:00PM

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85 VectorVest Testing Your Ideas 3:00 PM 4:00PM

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87 Testing Your Ideas 1. QuickTest 2. QuickFolio 3. BackTester 4. Genius VectorVest 7 has four ways to test your ideas: Testing Your ideas Performance QuickTest Provides a fast way of testing the performance of a group of stocks over a selected time period. 1

88 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. 2

89 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. 3

90 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? 4

91 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. 5

92 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 6

93 VectorVest ETF Magic 4:00 PM 4:45PM

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95 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 What Makes ETF s so Exciting? 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. 1

96 ETF Magic What Makes ETF s so Exciting? 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. 2

97 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. 3

98 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. 4

99 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 5

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101 VectorVest Q&A 4:45 PM 5:00PM

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103 VectorVest CockTail Reception 5:00 PM 6:00PM

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105 VectorVest Special Presentation 6:00 PM

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107 VectorVest VectorVest Two Day Investment Seminar End of Day One

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109 VectorVest VectorVest Two Day Investment Seminar Start of Day Two

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111 Day Two Morning Session

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113 VectorVest Using Special Tools For Explosive Profits 9:00 AM 9:45AM

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115 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 WatchLists individually or in combinations. 1

116 Hi Lo Case Study Date: 02/19/2016 Situation: First green light in the Price Column off a bottom Search: Teeny Boppers 1. Click on the UniSearch tab. 2. Click on Searches Price Volume folder and then select Teeny Boppers. 3. Run Search on 02/19/ QuickTest to 06/17/16 the next C/Dn. QuickTest Results 2

117 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. 3

118 Trends Case Study Date: 02/19/2016 Situation: First green light in the Price Column off a bottom Search: BF =S, =B 1. Click on the UniSearch tab. 2. Click on Trends Bottom Fishing and then select BF =S, =B. 3. Run Search on 02/19/16 4. QuickTest to 06/17/16 the next C/Dn. QuickTest Results 4

119 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. 5

120 Delta Case Study Date: 02/19/2016 Situation: First green light in the Price Column off a bottom Search: Rising Business Sectors 1. Click on the UniSearch tab. 2. Click on Delta Searches Stocks folder, then Rising Business Sectors. 3. Run Search on 02/19/ QuickTest to 06/17/16 the next C/Dn. QuickTest Results 6

121 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. 7

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123 VectorVest ProTrader Graphs 9:45 AM 10:30 AM

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125 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 Support & Resistance Lines Gann Fans Fibonacci Arcs Fibonacci Fans Fibonacci Retracements Fibonacci Time Zones Drawing Features 1

126 Support & Resistance Chart Example ProTrader Graphs Top Technical Indicators for Trending Markets Trend lines Moving averages Moving Average Convergence Divergence (MACD) 2

127 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 3

128 Down Trend Chart Example ProTrader Graphs Moving Averages Purpose prediction of the real direction of price movement Graphing plotted on same chart as price 4

129 Varying Length for SMA (10,50 & 200 Days) Moving Averages: 20 Days (SMA=Circle, EMA=Triangle) 5

130 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 6

131 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 7

132 MACD Chart Example ProTrader Graphs Description: Bollinger Bands 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. 8

133 ProTrader Graphs Calculation: Bollinger Bands 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 Interpretation: Bollinger Bands 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. 9

134 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 10

135 VectorVest Break 10:30 AM 10:45 AM

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137 VectorVest ProTrader Searches 10:45 AM 11:30 PM

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139 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 1

140 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) 2

141 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 3

142 Moving Averages Description: Weighted Moving Average 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 Blue 20 day EMA Red 20 day SMA Green 4

143 Sensitivity of Moving Averages Type of Moving Average Simple Exponential Weighted Sensitivity Least Medium 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 1. Click on the UniSearch tab. 2. Click on Trade Like a Pro folder, then 12 & 26 EMA Crossover Long. 3. Run Search on 11/11/ Graph the top 10. 5

144 12 & 26 EMA Crossover Example Chart (Bullish) Case Study: MACD Crossover (Bullish) Date: November 11, 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/ Graph the top 10. 6

145 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. 7

146 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, Situation: Green Light in Price Column Search: Star Search 1. Click on the UniSearch tab. 2. Click on the ProTrader Folder, then Star Search. 3. Run Search on 11/11/ Graph the top month graphs. 8

147 Star Search Example Chart for (FNSR) 9

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149 VectorVest Situational Investing 11:30 AM 12:15 PM

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151 Situational Investing Recognizing what the market is doing and implementing strategies that are consistent with that behavior. Situational Investing 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. 1

152 Situational Investing Buy and Hold Stocks in All Markets Buy 20 Long term Winners RS Desc. on 05/14/96, Hold to 12/23/ % Total Gain, Over 17% ARR Long Term Winners RS Desc. 2

153 Situational Investing 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 = % Compounded RR = 92.92% Not Recommended in Bull Market. Worst Stocks Over $

154 Situational Investing Riding the Wave Buy Stocks Long on Up Waves. Sell Stocks Short on Down Waves. Situational Investing Riding The Wave SFS CC S&P500 Winners/Vern s Vultures Trading Template from 12/18/12 to 10/11/16. Total Gain = % Annualized RR= 35.46% Compounded RR = 25.15% 4

155 SFS CC S&P500 Winners/Vern s Vultures 5

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157 VectorVest LUNCH 12:15 PM 1:15PM

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159 Day Two Afternoon Session

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161 VectorVest Worry Free Investing 1:15 PM 2:15PM

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163 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% 1

164 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! 2

165 Relative Safety (RS) Worry Free Dividends 3

166 Worry Free Dividends The Benefits of Dividends from Worry Free Investing trades placed since 5/17/ Dividend Deposits as of 9/30/2016 $54, Total Dividend Income $864, Total Value, with Dividends (5/17/96 10/4/16) Worry Free Dividends 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. 4

167 WFI Model 5

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169 VectorVest Seven Secrets to Making Money with VectorVest 2:30 PM 4:00 PM

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171 The First Secret Keep It Simple Keep it Simple Buy Safe, Undervalued Stocks, Rising in Price 1

172 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. 2

173 Keep it Simple Managing Your Portfolio 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 3

174 Learn to Read Graphs 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. Learn to Read Graphs Standard Graphs Stocks, ETFs and WatchLists Industry Groups and Business Sectors. 4

175 Learn to Read Graphs Market Timing Graphs The Market Timing Graph, DEW Timing Graphs Learn to Read Graphs Special Graphs Midas Touch, Performance Graphs, Investment Climate Graphs. 5

176 The Third Secret Heed the Color Guard Heed the Color Guard The Daily Color Guard is a Precise System of Timing the Market. It is so Important, it s Located at the Top of the Home Page. 6

177 Heed the Color Guard 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. Heed the Color Guard Watch the Daily Color Guard Reports 7

178 The Fourth Secret Exploit the Home Page Exploit the Home Page All the Information You Need to Make Money with VectorVest is on the Home Page. 8

179 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. 9

180 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. 10

181 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. 11

182 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 12

183 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! 13

184 Mission Statement Our Mission is to provide the best stock market guidance available anywhere at any price. 14

185 VectorVest Important Contact Information Sales: Seminars: Product Support: E mail: support@vectorvest.com