Following a lengthy trading career along with years of conducting seminars for traders worldwide, founder Robert Kendall’s vision for the future took on a new dimension. In 1992, Mr. Kendall left the Pacific Options Exchange and his active trading and consulting career to establish VPM Partners a software development company.
His goal was to develop a software product capable of replicating the same objective, quantitative process proven so instrumental to his trading accomplishments throughout the years. At that time, only a handful of ‘trading’ software programs was in existence.
Of those available, none incorporated the trading logic and principles responsible for Mr. Kendall’s personal trading achievements. His software company became the forum through which Robert sought to share his personal success with the trading community at large.
It was at that point that the trading models forming the basis of today’s VPM process were developed. However, following several years of technological advancements and software-product enhancements, Mr. Kendall was struck with the realization that these trading models were only part of a process concept capable of revolutionizing the way in which capital resources were managed.
In 1995, Mr. Kendall began to further explore the feasibility of incorporating an all-encompassing, cash-to-equities allocation process to portfolio management. The goal was one of providing a tool through which any user could systematically and effectively manage capital, regardless of previous market experience or expertise.
This exploration became the vehicle for the manifestation of his ideas. Several years and multiple revisions later, the VPM product was completed and began its task of managing real-world equity funds. It was only in witnessing the performance of this process at work that Mr. Kendall became fully cognizant of the magnitude of the product he had created.
Today, there is nothing even similar in the marketplace. For the select broker dealers currently employing the VPM process, it has been proclaimed the most significant innovation witnessed throughout their careers.
The degree of sophistication, expertise, and insight necessary to bring the VPM product to market is unparalleled in the industry. Upon initial explanation of the VPM process, potential users and investors alike comment, “Of course, we’d be interested in such a product…IF such a product existed.” Such commonly heard remarks leave the task at hand simply one of bringing VPM product awareness to the marketplace.
Due to the highly innovative nature of this product, we believe that potential impact on financial industry cannot be measured.
Daily Quant History
The Daily Quant Fixed income report began in 1994 as an accent to a software offing by Intelligent Market Analytics (IMA). The report was designed for intuitional trading desk at banks and brokerage firms for the proprietary trading desk focused on treasury securities for hedging a combination of applications to help intuitions to trade and hedge risk. The Daily Quant Fixed-Income Report was widely followed by most of the Global banks as well as many Mortgage Bankers and Brokerage firms trading desk. Clients such as Credit Suisse, Bear Streams, Lehman Brothers, Bank Paribas, Standard Chartered Bank, Societe Generale, Siemens, Ed ward Jones Bond desk and many others.
The Daily Quant analysis it based upon the technology derived from its price projection and retracement analytical process and related quant systems. The technology exploits time series data It discovers time varying relationships such as patterns and configurations. The process is self- adaptive, self-correcting as it learns from volatility of the day-to-day market movements and is able to track with high accuracy the behavior of the financial markets.
The VPM modeling processes are built on data previously identified (in sample) though pattern recognition which in turn generates highly accurate price projection and retracement forecast on varying data durations. The technology has been utilized for over 20 years for this analysis and has continued to deliver highly accurate projections for market movements on a multitude of financial instruments.
The Trading signals are generated by a modeling process that weights the individual forces to generate a buy or sell signal. It does so through an automated voting mechanism which rewards and penalizes individual indicators to determine market trend direction, probabilities to generate clear buy and sell signals.
It is one thing to know that a given market force is active; it is another to measure its direction, intensity and magnitude. The models arbitrate all of the conflicting forces to arrive at a consensus for the trend and daily projections which is the essence of what the Daily Quant does.
This technology was founded in the early 1980’s and has been applied to the markets for over 30 years standing the test of time to validate its predicative characteristics.