For those wanting a mechanical trend-following system, he outlines a simple cross of a 10-day and 40-day moving average on daily closes, combined with the 1-2-3 pattern for exits. He is careful to note that no system works forever.
: Confirmation occurs when the price breaks below the previous "minor selloff low" (for uptrends) or above the "minor rally high" (for downtrends). The 2B Rule (The "Spring") Trader Vic Methods Of A Wall Street Master By Victor
Trader Vic: Methods of a Wall Street Master by Victor Sperandeo presents a trading philosophy focused on capital preservation through technical analysis, fundamental economic context, and disciplined psychology. Key principles include the 1-2-3 rule for trend reversals, the three-trend market analysis, and a strict risk-to-reward ratio of at least 1:3. Read the full blog post on this topic to learn more. About the Author For those wanting a mechanical
Sperandeo opens the book by stripping away the glamour often associated with Wall Street. He argues that trading is not gambling, nor is it investing in the traditional sense—it is a business. Traders and investors of all levels Anyone interested
"The Methods of a Wall Street Master" by Trader Vic is a must-read for anyone interested in trading, investing, or simply understanding the markets better. Through his book, Trader Vic offers a unique perspective on the markets, gained from decades of experience on Wall Street. By applying his principles and techniques, traders and investors can improve their skills, manage risk more effectively, and achieve better investment outcomes.
He sat on his hands. The market consolidated. It was a coiled spring.