Lane Mendelsohn Interviewed on Proactive Investors
Lane Mendelsohn, President of Vantagepoint ai was asked to interview live in the Proactive Investors’ New York studio by Christine Corrado to talk about the evolution of Vantagepoint and how it has now used AI to help nearly 30,000 customers around the world to make profitable trades.
Christine Corrado: I’m Christine Corrado, here in the Proactive Investors New York studio. Joining me in the studio today is Lane Mendelsohn from VantagePoint AI. Lane, it’s great to have you here today.
Lane Mendelsohn: Thanks Christine.
Christine Corrado: So tell me a little bit about VantagePoint AI.
Lane Mendelsohn: Our company was founded by my father back in 1979. And if you can imagine, back in 1979, there weren’t a lot of people using computers. So a lot of people were trading the markets, charting the numbers by hand. And my father saw an opportunity to combine technology with the financial markets. Those were his two passions. And very successfully developed the very first trading software in the world that did historical back testing and simulations on a personal computer. Previously that was only done on mainframes. And then in the late 1980’s, he started to see a real shift in the markets where he saw that the world was becoming very global. So if you’re trading commodities markets or you’re trading US stocks, you really have to look at the big picture and the global picture, and that posed a big problem because when you’re sitting there charting all these markets by hand, that’s just something that a human couldn’t possibly do. And that’s what led him down the path and eventually to artificial intelligence.
Christine Corrado: So a lot of companies these days are adopting artificial intelligence now, but it seems as if you had adopted it back then in 70’s and 80’s, how did you know about artificial intelligence? Why were you such early adopters?
Lane Mendelsohn: Well, my father went to Carnegie Mellon. So he was exposed to artificial intelligence back in the 1960’s when he was a student at Carnegie Mellon. So he was aware that it existed, but at the time, he didn’t really have an application for it. Flash forward, now it’s the late 1980’s. He’s starting to see all the global market shifts that were occurring, and he was desirous of looking at US markets, overseas markets, commodities, currencies, interest rates. So many different markets, massive quantities of data, and he thought, how could I possibly amalgamate all this data, make sense of it, and turn that into something that’s actionable where I could benefit and monetize it in the markets.
And that’s where he said ha, artificial intelligence because it can ingest massive quantities of data and sift through it, sort through it, and make sense of it, whereas you and I as humans, we couldn’t possibly do that. So he started applying artificial intelligence late 1980’s, and we released VantagePoint, our flagship product in 1991.
Christine Corrado: Yeah, tell me more about VantagePoint products, and how traders can take advantage of them.
Lane Mendelsohn: So VantagePoint came out in 1991, and over the years we’ve continued to refine it and add more features and functionalities to make it even more effective, both in terms of its accuracy. We’re now at 86% accuracy, but also in terms of its usability and the different features and functionalities that customers and traders have requested.
There are two patents on the technology. And what it’s doing is it’s first using artificial intelligence to … let’s say Apple for example. It’s trying to determine what are the 30 most impactful markets that drive impact and influence Apple? We know Apple’s a global company. You could probably think about other technology stocks that probably affect the price of Apple. Maybe even transportation stocks. You can think of others that intuitively make sense to analyze. But what you wouldn’t realize is there are so many other markets that you’d never think to analyze because you don’t see the correlation between those other markets and Apple. So we’re going way beyond correlations, and we’re using artificial intelligence to mine data using machine learning to find commodities and interest rates and currency prices and international markets that tend to affect Apple. And we’re using that information to then forecast the price of Apple and where that stock is likely to go over the next one to three days with a very high degree of accuracy.
And that is the other patent that we have is the ability to actually take a lagging indicator like traditional technical indicators, moving averages, stochastics, trend lines. And instead of looking backwards, truly forecast and look forward at what’s likely to happen.
Christine Corrado: And how is this different from other software programs that traders use?
Lane Mendelsohn: Most software programs or newsletters or information sources, let’s call it that. What they’re doing is they’re looking at a single stock in isolation. So if they’re looking at Apple, they’re looking at the price action of Apple, maybe fundamentals, news about Apple. They’ve got these blinders on, and what they’re not allowing you to do as a trader and investor is look at that 360 degree global perspective. But as the markets became global, that’s when my father said, “To really gain an edge in today’s global markets, you have to have a global approach.”
So VantagePoint is taking all of that data and using that to make its forecast. And instead of looking at that single stock in isolation, we’re looking at the big picture and then using leading indicators, and again, artificial intelligence to predict what’s likely to happen with a high degree of accuracy. And this is the information you just don’t get anywhere else. And that’s why we’ve seen a tremendous increase in profitability and success rates with our customers versus when they were using traditional technical analysis previous.
Christine Corrado: Yeah. Can you give me an example of one of those use cases?
They normally come to us, and say, “Look. I’m losing money or I’m breaking even or I’m making money, but I feel like I can be making more money.” They want to get to that next level. And so what we do is we do a consultation, find out. When you lose money in the market, what are you doing? Why is that happening? Where are the areas that you think you can improve upon? And the answers are almost always the same. They say, “Timing. I don’t know when a trend is going to begin or end. Direction. I don’t know which direction it’s going to go in. And the third thing is I don’t know which stocks I should be in and which stocks I shouldn’t be in.” And if you knew the answer to those three questions, you’d be a successful trader.
So VantagePoint provides those answers because it will forecast with an 86% accuracy when a trend is likely to begin or end, which direction that trend is likely to go in, and using our proprietary intelliscan feature, it sifts through thousands and thousands of stocks each night in a matter of seconds because it’s all done in the cloud. And it will deliver to you literally on a silver platter, these are the stocks to focus on and the rest you can just forget about because they’re not worth looking at this time.
Christine Corrado: And how many customers do you have at the moment?
Lane Mendelsohn: We have about 30,000 customers worldwide. We have customers in about 160 countries now, and we’re really proud of that because we’ve been able to help so many people to become more financially free, more confident. Just have more clarity when it comes to making those trading decisions. It can be stressful when you’re not sure what to do or when to do it. So by giving people that confidence and the information that they wouldn’t be able to get elsewhere, that’s what leads to success. And we’re in the business of empowering traders and helping them be more successful. And I’m very proud that we’ve been so successful at doing that for close to 40 years now.
Christine Corrado: And obviously you’re a private company. Any plans at all to take the company public?
Lane Mendelsohn: No. Our focus is not going to be on the share price or the board or anything like that. Our focus is the technology. We’re going to continue to develop and refine and improve the technology so that it continues to give our customers and traders an edge in the markets. And we’re constantly working to make it better. We have an ongoing research and development team. So it’s the technology that we focus on and our customers, making sure that the people who have our software are gaining maximum benefit out of it. And we have a very large customer service team that helps customers after they get the software to install it and utilize it and be there to answer questions. And even coach them if they want that or need that. And we even do live events. We have customers that will fly to Tampa, Florida, where we do live events a couple times a year. And we’ll sit there for three days in a workshop. And people that come to those, it’s transformative. They leave there just with so much knowledge, so much
confidence, and the results just skyrocket. And it’s so fun to see that just after a couple of days.
Christine Corrado: Great, Lane. Well, thank you so much for coming to the studio today. We’ll look forward to covering how you continue to evolve that technology.
Lane Mendelsohn: All right. Great. Thanks, Christine.
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