After breaking the trendline, the price will attempt to resume its previous direction and test the recent low. To satisfy Step 2, the price must hold above that low, creating a "higher low" (or a "lower high" in the case of a peak reversal). Step 3: The Breakout
Sperandeo emphasizes that emotional discipline is the vehicle for capital preservation. He advocates for the use of hard stop-loss orders on every single position to eliminate human hesitation when a trade goes wrong. 2. The 1-2-3 Trend Reversal Strategy
Use relative strength to compare the performance of different assets. This can help in identifying potential trade opportunities. After breaking the trendline, the price will attempt
Sperandeo frequently states that emotional discipline and money management are far more critical than entry signals. He enforces several non-negotiable rules to survive market volatility:
This background shaped a pragmatic approach to the markets—one that cuts through the noise of financial television and complex algorithms. He serves as General Partner of The Professional CTA Fund and has managed money for legends like George Soros, earning him the moniker "The Ultimate Wall Street Pro". He advocates for the use of hard stop-loss
: Cut losing trades immediately when the market proves your thesis wrong.
While Sperandeo utilizes both macroeconomics and technical charts, he is famous for his highly objective, rule-based approach to identifying trend changes. His most celebrated contribution to technical analysis is the . This can help in identifying potential trade opportunities
Unlike pure chart technicians, Trader Vic attributes his massive wins—such as predicting the 10,000-point drop during the 1987 crash—to an understanding of macroeconomics, government policy, and central banking. The Federal Reserve Factor
: Every trade must have a predetermined exit point executed via stop-loss orders without exception.
