I have very good news for you folks. Our Product Development Group has been very busy and is about to release a new build of VectorVest 7 which will do virtually everything that VectorVest 6 did and a whole lot more.

I am especially pleased by the great work done on enhancing the functionality of the BackTester. You're going to love this tool because you'll be able to run it automatically or manually. It can be started and stopped at any point in a test and it will run over any specified time period. While in manual Mode, you can move it forward or backward within your test period in one or five day increments. If you have access to the AutoTester, you can set the BackTester to stop running whenever an event, such as a C/Up or C/Dn signal, occurs. When a backtest does stop, you can quickly refer to the VectorVest Views for that date by clicking on a new Views button. You'll also be able to see buy/sell transactions, portfolio positions, WatchList analysis and equity performance during a backtest.

When opening new positions from a search, you can set a custom amount to spend per position and you may set specific stop criteria on each position. A new stop criterion, "Loss 3% below prior days low," also has been added. In addition to many other features, you will be able to easily add dividend payments and option premiums to the Transaction Log. The alerts management screen has also been revamped so that you can keep up to 4 email addresses on file and select what type of alert goes to which email address.

In the graphics function, you will be able to see the data values behind any line, bar or candlestick by hovering your mouse pointer over the item. A new MACD setting, (8,17,9), and a new Stochastic setting, (14,5), have been added to the Technical Analysis function in UniSearch. For users behind a proxy server, we have added a screen for proxy settings to help you connect to our data servers. Finally, a myriad of bugs have been fixed.

For all intents and purposes this release of VectorVest 7 fulfills our promise to make it as fully functional and more powerful than VV6. In our pre-release demonstrations of the Enhanced BackTester at the Traders Expo in Dallas, it has received rave reviews. Thanks team for A Job Well Done.

P.S. The release of this new build will begin on Monday morning and will be completed by next Friday.

DOING DON'S DIVIDEND DANDIES WITH THE ENHANCED BACKTESTER.
Try as I might, there is no way I can describe how good the Enhanced BackTester is. So I would urge you to take a few minutes of your time to join Mr. Bill Iuliano, Instructor and Product Support Representative, at the VectorVest University to see this week's wonderful "Strategy of the Week" presentation, "Doing Don's Dividend Dandies with the Enhanced BackTester."

We have great news folks. As of today, a new release of VectorVest 7 with expanded MA Crossover search capabilities is being launched. You will be prompted to automatically update VectorVest 7 within the next week. If you would like to get the new version right away, please go to http://www.vectorvest.com/install/vectorvest7 and click the download button.

With the new build, you will be able to run the "The Long-Term Winners" Strategy which was introduced in my essay dated April 21, 2011. You may recall that this Strategy produced a gain of 154.77% in a little over two years with only thirteen trades, 12 winners and one loser. Unfortunately, it was demonstrated in VectorVest 6, which some of our users do not have. (I should also note that whether you are using VV6 or VV7, you must have VectorVest ProTrader installed in your software. If you wish to get a free two-week trial of VectorVest ProTrader, please click here call Product Support at 1-888-658-7638.)

Now that I was able to run these searches in VV7, I was eager to take them for a test drive. The first thing I did was to create the "Long-Term Winners" search in VV7 and checked to see if it returned the same stocks as VV6. I was pleased to see that it did. I then tried to duplicate the results shown above with the VV7 Backtester. Uh oh. I ran into a problem. The Backtester only allows Gain/Loss% setting up to 100/100 and we had used a setting of 200% Gain/20% Loss to get the results shown. The 100%/20% setting didn't work as well, so we will get this problem solved in our next release.

Not to be deterred, I ran a wide variety of tests and concluded that the original "Long-Term Winners" Strategy is too restrictive. This shortcoming was made apparent by a great new feature in VV7 which allows us to find the crossovers in a window lasting from one to five days. Wow, running a simple 10x65 Day Price MA Crossover search with no other conditions on 12/31/10 returned 39 stocks whereas the original "Long-Term Winners" Strategy found only one stock.

Quick Test showed that the stocks returned by the simple search with a one-day window produced 19 winners and 20 losers from 12/31/10 through yesterday's close. Running the simple search with a five-day window returned 99 stocks with 61 winners and 38 losers. With this many hits, all I had to do was to fine tune the search a little bit and find an effective sort. You'll never guess what that is, but I think you'll like it. I named the search "Long-Term Winners II" and I'm pleased by the results it produces.

Finally, I want to thank our developers for their great work and for Casting a Bigger Net with VV7.

LONG-TERM WINNERS II.
Join Mr. Brian D'Amico at the VectorVest University to learn all about this great new search in this week's "Strategy of the Week" presentation: "Long-Term Winners II."

The Holy Grail of stock trading is a fully developed system of trading stocks which consistently produces high returns with tolerable draw-downs. While I have never claimed to be looking for the Holy Grail, I have written about virtually every aspect of trading system development, and, in fact, we teach the subject in our Technical Analysis Course.

As I recall, the first steps in developing a successful trading system lie in knowing when to go long and when to go short and finding the best Strategy to use for finding the right stocks. Money management rules are then applied to reduce risk and optimize performance.

Traditionally, we have used our Market Timing System to know when to go long or short and the UniSearch Tool along with QuickTest to find the most promising Strategies to use. The Back-Testing features of Portfolio Manager are then used to reduce risk and optimize performance. The Simulator performs all of these tasks automatically and is the ultimate tool for trading system development.

The VectorVest RealTime Derby, however, adds a new dimension to the process. It tracks and displays the daily performance of 185 10-stock portfolios, tick-by-tick, from the opening bell to the market's close. The data from each day's performance is stored in a Derby Tote Board which allows us to study the cumulative performance of each portfolio over any selected time period.

Observation of the top five performing portfolios for the five-day periods provides a market timing system unto itself. For example, the market is bullish when all five portfolios are derived from Bullish Strategies. It is bearish when all five portfolios are derived from Bearish Strategies. It is in transition when they are mixed. These observations do not conflict with the information given by the Color Guard, but complement it.

The Tote Board performance data also complements the work done by the QuickTest tool. While the Tote Board sums the daily performance of the 10-stock portfolios created each day, QuickTest displays the performance of a single l0-stock portfolio from the day it was created to the end of the time span. Therefore, the results are different. Which data set is a better indicator of future performance?

Hopefully, you watched last week's "Strategy of the Week" presentation. It showed that going long on July 12th with a Strategy selected from the Tote Board's list of 5-day top performing portfolios produced wonderful results. What would the sequence of five QuickTests from the close of July 2nd to the close of July 12th have told me? (This sequence of QuickTests was run on the Simulator and is called "Quick Sims.") Here are the results:

Tote Board	Quick Sims
Jail Break - No Contra ETFs - 16.56%	S&P600 Small Cap/RT - 14.71%
S&P600 Small Cap/RT - 15.56%	Silber's Singles/BMB - 10.13%
Blyar's Bottom Feeders/BMB - 15.22%	Pirates Long - 10.08%
Russell 2000/RT - 14.83%	Odd Fellows Long - 9.41%
Bottoms Up - 13.49%	S&P100/RT - 9.31%
Silber's Singles/BMB - 11.82%	Bottoms Up - 9.26%
Jubilee - 10.95%	Blyar's Bottom Feeders/BMB - 8.65%
VST Mighty Mites - 10.89%	Jail Break - No Contra ETFs - 8.55%
Odd Fellows Long - 10.46%	Jubilee - 8.08%
Pirates Long - 9.63%	S&P500/RT - 7.93%

My first observation is that eight of the top 10 Tote Board Strategies also made the top 10 of the Quick Sims list. However, the S&P600 Small Cap/RT Strategy was the only one ranked in the top five performers of both lists. Since July 12th, it is the second biggest gainer in the Tote Board with 17.37% as of yesterday. Quick Test also showed a nice gain of 12.11%.

Jail Break - No Contra ETFs, the biggest 5-day winner ala the Tote Board, came in fourth place with a Tote Board gain of 15.69% since July 12th and a gain of 6.85% ala QuickTest. Finally, Silber's Singles/BMB, the second highest stock ala QuickTest, showed a gain of 6.18% since July 12th ala the Tote Board and -0.48% ala QuickTest.

So which is the better indicator of future performance? That's hard to say with so little data, but I'm leaning toward the Tote Board. However, I haven't taken efficiency into account in this comparison and it could be The Difference Maker.

EFFICIENT PERFORMERS - PART II.
Jerry D'Ambrosio dazzled us with his presentation last week, so we decided to explore it a little further. Let's see what Mr. Todd Shaffer can do with the technique Jerry described. Visit the VectorVest University to see this week's "Strategy of the Week" presentation: "Efficient Performers - Part II."

Timely information is power. Power is the ability to get things done...to execute. Nobody uses timely information to execute stock trades better than Goldman Sachs. They make 10's, if not 100's of millions of dollars a day by processing vast amounts of information and executing thousands of trades in micro-seconds. Wouldn't you like to be more like Goldman Sachs?

End-of-day subscribers can take a giant step toward this goal by using VectorVest 7 Intraday. It will not turn you into a Goldman Sachs money machine overnight, but it will allow you to do things during the day that you could never do before. So what is VectorVest 7 Intraday and how can it help you become a more informed, timely investor?

VectorVest 7 Intraday is a replica of VectorVest 7 RealTime with a 15 minute time delay. You may view a 3:26 minute video introduction to VectorVest 7 RealTime by visiting the VectorVest University, clicking on the RealTime tab, and selecting Product Overview. Note that the Homepage in V V 7 is actually an information center that you can tailor to your own needs. The location of the Viewers in V V 7 has been centralized for easier access and the graphs are superb, with many new features. I especially like the fact that technical indicators, such as the ADX, MACD and DPO, are all standard. If you don't already have ProTrader, you may purchase the ability to use technical indicators in UniSearch Strategies for a small, one-time charge.

This is all fine, but how is VectorVest 7 Intraday going to help me become a more informed, timely investor? By using three fantastic, new tools: QuickFolio, BackTester and Portfolio Automation.

QuickFolio is a tool that allows one to create a portfolio of stocks with just a few clicks of the mouse. It then tracks the performance of the portfolio, tick-by-tick, from the market's open to its close. I have written about using it on several occasions and my essay of 02/13/09, "Another Day at the Races," describes how I used it. This wonderful application is what led to the creation of the VectorVest RealTime Derby. The Derby is not available in VectorVest 7 Intraday, but QuickFolio makes it easy for you to create your own mini-Derby, just as I did.

BackTester is a brand new tool that makes testing your ideas easy and intuitive. BackTester is NOT part of Portfolio Manager. It is so easy to use that even a klutz like me could sit down and use it without instruction. But seeing is believing. Mr. Dan Misch will demonstrate how to use it in this week's "Strategy of the Week" presentation.

Portfolio Automation is the tool that could take you out of the dark ages of placing trades when the market is closed to making informed, timely trades during the day. This tool allows you to set all the conditions and parameters needed to automate the management of your portfolio. It does NOT make trades with your broker. It informs you via electronic Alerts and emails of trades that should be made according to the conditions and parameters you selected. Once you have this timely information, it's up to you to execute the trade.
Portfolio Automation is also a wonderful way to forward test your ideas. In other words, you may create a hypothetical portfolio of stocks and let Portfolio Automation manage the portfolio going forward. If you are new to VectorVest, I strongly suggest that you not trade with real money until you have proved to yourself that you can make money "paper trading."

If you're serious about making money in the stock market, you need timely information and the ability to act on it. Click on the following link http://www.vectorvest.com/VV7Upgrade for a 30-day FREE TRIAL to VectorVest 7 Intraday.

MAKING MONEY WITH VECTORVEST 7 INTRADAY.
Do you trust your broker to execute your Stops for you? Not after the "Flash Crash," I don't. But you have a day job and can't follow the stock market minute-by-minute. So what do you do? Get your 30-day Free Trial to VectorVest 7 Intraday and learn how to do it electronically. Mr. Dan Misch will show us how to use the BackTester and Portfolio Automation tools to execute informed, timely trades even when we can't follow the market. Join Dan at the VectorVest University to see this week's "Strategy of the Week" presentation, "Making Money with VectorVest 7 Intraday."