Taking the next step
By then, Mendelsohn was already well on his way to developing other innovative next-generation trading software that dealt with the affects of various global markets on one another. Around the time of the 1987 stock market crash, he released the first trading software program capable of analyzing the effects of related markets on one another, in what would later become known as intermarket analysis.
Then, in 1991, the same year that John Murphy, a fellow Market Technicians Association member and personal friend of Mendelsohn’s, published his own research on intermarket analysis, Mendelsohn released his third trading software program called VantagePoint Intermarket Analysis Software.
VantagePoint was much more robust than Mendelsohn’s earlier intermarket analysis program, using a form of artificial intelligence known as neural networks to quantify the intermarket relationships between markets. VantagePoint uses the pattern recognition capabilities of neural networks to find the hidden patterns and relationships between related global markets and forecasts the trend direction of each target market with up to 86% predictive accuracy.
Although mathematical algorithms such as Mendelsohn’s were not yet recognized as patentable processes by the U.S. Patent Office until the late 1990s, Mendelsohn did receive worldwide recognition years earlier for his pioneering work in strategy back-testing and intermarket analysis when his biography was chosen to be included in Marquis Who’s Who in Finance and later Who’s Who in America and Who’s Who in the World. His biography was also selected for inclusion in a time capsule in Washington, D.C., to be opened in 100 years.
Market Technologies itself has grown considerably since Mendelsohn’s early years as a software software developer, and now has more than 50 employees supporting its trading software customers in nearly 150 countries. Now in his mid-60s, Mendelsohn is not only a living legend and pioneer in the field of computerized technical analysis but is still actively involved in guiding his company and overseeing his company’s R&D department in creating more robust analytic tools for traders, including a suite of predictive technical indicators that are used by his customers to forecast market trends and prices in advance.