Of A Wall Street Master By Victor Sperandeopdf Work | Trader Vic Methods

| Principle | Rule | |-----------|------| | Maximum loss per trade | 1% of total capital (2% absolute max) | | Risk/reward ratio | Minimum 1:3 (risk $1 to make $3) | | Stop loss | Always placed based on technical levels, not arbitrary percentages | | Position sizing | Adjust so that a stop-out loses no more than 1% of capital |

| Topic | Sperandeo’s Method | |--------|---------------------| | Trend identification | Dow Theory + trendlines + 1-2-3 pattern | | Entry signal | After pullback in primary trend, or 1-2-3 reversal | | Stop loss | Below prior swing low (longs) / above prior swing high (shorts) | | Max risk per trade | 1% of capital | | Risk/reward | 1:3 minimum | | Indicators used | Price, volume, trendlines, basic MAs | | Timeframe | Daily and weekly (not intraday) | | Principle | Rule | |-----------|------| | Maximum