Trader Vic Methods Of A Wall Street Master By Victor -

"Trader Vic,"

Victor Sperandeo, known as focuses on a unified philosophy that combines technical analysis, risk management, and economic forecasting. His book, Methods of a Wall Street Master , emphasizes three business goals: capital preservation , consistent profitability , and extraordinary returns . 🏛️ The Three Pillars of Trading

  1. Primary Trend: Bullish (Price > 200 MA).
  2. Secondary Reaction: Price down 8% (less than 10%, so not a bear market yet).
  3. Confirmation: Wait for the price to break above the last minor swing high on the daily chart (the downtrend line).
  4. Entry: Place a buy stop order exactly 1 tick above that swing high.
  5. Stop Loss: Place it below the recent pullback low.
  6. Position Size: Assuming a $100k account (2% = $2k risk). If the entry is $100, and the stop is $98 (2 point risk), the position size is $2,000 risk / $2 risk per share = 1,000 shares.
  7. Exit: Hold until the Dow Theory gives a sell signal (e.g., Industrials fail to confirm a new high, or price breaks below a prior secondary reaction low).

Part 5: Money Management & Position Sizing

Break of Previous Pivot:

Price breaks below the previous "minor selloff low" in an uptrend, or above the "minor rally high" in a downtrend. 2. The 2B Rule (The "Fakeout" Reversal) Trader Vic Methods Of A Wall Street Master By Victor

Conclusion: The Master’s Legacy

Back to top