CARRINHO
It forces you to wait for evidence. You don’t guess tops or bottoms. You let the market prove it is reversing.
Trader Vic teaches that you should not try to buy at the absolute bottom (Accumulation) because it is impossible to know when it ends. Instead, wait for the trend to be confirmed and trade in the direction of the momentum. Trader Vic Methods Of A Wall Street Master By Victor
Where Account Risk is 2% of your capital. Notice that volatility (the distance to your stop) determines your size. High volatility equals small positions. Low volatility equals large positions. Most traders do this backwards; they buy the same number of shares regardless of volatility and blow up. It forces you to wait for evidence