Table of Contents
In this interview, trader Umar Ashraf opens up about the real journey behind his results—early wins, painful setbacks, and the mindset shifts that turned chaos into a repeatable process. He talks candidly about discipline, risk, and why treating trading like a business (not a hobby) is the difference between spinning wheels and building longevity. It’s practical, honest, and packed with insights newer traders can apply right away.
You’ll learn Umar’s trader strategy in plain English: how he sizes risk trade-by-trade, the simple daily routine that keeps him objective, and the journaling workflow he uses to turn screenshots into a playbook. We’ll also hit execution tactics (entries/exits, scaling), common psychology traps (revenge trading, FOMO), and a clean way to evaluate brokers and tools without getting distracted by hype—so you can copy the parts that fit your personality and start building your own edge.
Umar Ashraf Playbook & Strategy: How He Actually Trades
Core Trading Philosophy
Here’s the big picture of how Umar operates: he treats trading like a business with fixed rules, measured risk, and a repeatable process. The goal is simple—take only high-quality setups that pay at least 2:1 and protect capital with non-negotiable risk limits.
- Define “A+ setup” criteria and only trade when all boxes are checked.
- Target ≥2:1 reward: risk; walk away from anything smaller.
- Risk 0.25%–0.75% of account per trade; never more than 1%.
- Stop for the day at −2R or after 3 consecutive losses.
- Log every trade the same day; decisions must be data-driven, not vibes.
Market Focus & Instruments
Umar sticks to liquid, institutionally-owned large caps and index products, so entries/exits are clean and slippage stays minimal. He trades equities and options, but the read comes from the stock—options are just the vehicle.
- Build a daily watchlist of 3–6 large caps and SPY/QQQ with >20M avg volume.
- Avoid tickers with spreads >0.05 (equity) or >5% of premium (options).
- Prefer names with fresh catalysts (earnings, guidance, macro prints).
- If trading options, choose same-day or next-day contracts with ≥0.35 delta and tight spreads.
- Keep the option size small enough that the stock stop still equals the planned risk.
Pre-Market Prep (Levels & Narrative)
He maps the story before the bell: where the liquidity sits, where traps are set up, and which levels matter most. The plan removes guesswork, so execution at the open is automatic.
- Mark prior day high/low, pre-market high/low, overnight midpoint, and VWAP.
- Draw daily/4H trendline and 15m/5m structure; trade with higher-timeframe bias.
- Identify liquidity pools (recent swing highs/lows) where stop-runs are likely.
- Write a one-liner for each name: “If price accepts above X, look long to Y; fail back below X = short to Z.”
- Pre-define invalidation: exact price, time condition (e.g., first 30–45 min), or volume threshold.
A+ Setup Checklist
Quality over quantity. Umar’s best trades share the same DNA: clean levels, real volume, alignment across timeframes, and obvious space to target.
- Higher-timeframe bias aligned with 15m/5m trend.
- Break-and-hold (or fail-and-reject) at a key level you marked pre-market.
- Volume ≥1.5× 10-day average on the trigger candle.
- Impulse → pause → continuation structure (no chop).
- Clear 2R–3R runway to the next supply/demand zone.
Entry Triggers (Stocks)
Entries are simple and rules-based—no chasing. The first hour is prime, but only if the level/volume story confirms.
- Use 5m ORB/retake: enter on a break and hold above/below the opening range with volume confirmation.
- Enter a retest of the level (limit/stop-limit) rather than chasing the first break.
- If the trigger candle closes back inside the range, cancel the order and reassess.
- Never market-buy a vertical candle; require a micro-pullback or retest.
Entry Triggers (Options)
Options follow the stock plan precisely. The contract is a lever, not a new thesis.
- Select contracts with tight spreads and open interest ≥2,000.
- Place stops using the stock level, not the option price.
- Enter with limit orders at the retest; do not hit wide spreads.
- If implied volatility spikes and wrecks R: R, skip the trade.
Risk Management & Sizing
Risk is fixed and boring by design. The math controls the emotions and keeps the account alive long enough for the edge to play out.
- Pre-set max daily loss = 2R; platform hard-stop enabled.
- Initial stop goes at the invalidating level, not “where it feels right.”
- Size via: Shares = (Account × Risk%) ÷ (Entry − Stop).
- If the stop must widen, reduce its size to keep the risk constant.
- No adding to losers, ever. Add only on the planned pyramid after +1R with a new stop that locks profit.
Trade Management (Scaling & Targets)
He scales out into strength/weakness and lets structure dictate exits. The aim is to bank risk early and hold a runner for the meat of the move.
- Take 25% at +1R, 25% at +2R, move stop to break-even after +1R.
- Trail remainder behind 5m swing lows/highs or VWAP, depending on trend.
- If momentum dies (volume divergence + failed follow-through), flatten remaining size.
- Into major HTF level, switch to time-based exit (e.g., into lunch hour) if tape slows.
The First Hour Blueprint
Open drives are where most opportunity—and danger—lives. Umar’s structure turns chaos into a checklist.
- Trade only one of: ORB breakout, ORB failure/retake, or pre-planned gap fill—not all.
- Require opening range close in your direction and sticky price acceptance.
- If the first 1–2 five-minute candles are wide and erratic, stand down until a retest forms.
- Two attempts max on the same idea in the first hour; if both fail, move on.
Midday Rules
Protect gains and avoid giving back the morning by mistaking chop for a signal.
- Reduce size to ½ normal after 11:30 a.m. local market time.
- Only trade news catalysts or A+ level retests with volume.
- If the range compresses and spreads widen, stop trading until the power hour.
Power Hour (Last 60–90 Minutes)
Late-day moves can be clean once the day’s trend is set. Execute the same playbook with slightly wider stops and clear targets.
- Favor trend continuation into daily levels identified pre-market.
- Use a 15m structure for trailing; aim for closing prints near HTF levels.
- No fresh trades in the final 10 minutes unless it’s a pre-planned swing.
Swing Criteria (If Applicable)
Most of Umar’s edge is intraday, but when swings happen, the same discipline applies with higher-timeframe confirmation.
- Daily trend aligned with weekly; no counter-trend swings.
- Entry on daily close through level + next day acceptance.
- Risk ½ intraday size per swing idea; wider stops, smaller size.
- Re-evaluate after 2 daily candles; if acceptance fails, cut.
Psychology & Process Habits
Mindset is operationalized through routine. These habits keep decisions objective and energy focused.
- Morning: 10–15 minutes of review, then write the day’s if/then plan.
- During trading: breathe, read the tape, follow the checklist in order; no Twitter, no P&L watching.
- After trading: 5-minute cool-down before journaling; rate setup quality (A/B/C) and execution (1–5).
- Weekly: pick 1 behavior to improve (e.g., stop moving stops), track it daily.
Journal & Metrics (Make the Data Talk)
Umar is obsessive about journaling because it turns anecdotes into evidence. The journal proves what to double down on and what to cut.
- Save screenshots of thesis level, entry candle, and exit with notes.
- Tag each trade by setup, time of day, market regime, and ticker type.
- Track R multiple, win rate by setup, and avg MAE/MFE; drop any setup with <1.3 expectancy over 30+ samples.
- Run a monthly audit: keep top 1–2 setups, eliminate distractions, and update rules.
News & Catalyst Handling
Catalysts add momentum—but also whipsaw. Treat them with structured caution.
- On earnings/major macro prints, halve size and double patience.
- Wait 2–3 five-minute candles for direction unless pre-planned.
- Trade the second move (retest/acceptance), not the first spike.
- If spreads blow out or IV crush distorts R: R, pass.
Broker, Platform & Risk Controls
Tools should enforce discipline, not tempt over-trading. Set the rails so the worst decisions aren’t possible.
- Enable hard daily stop at broker (−2R); disable once per day rule is not allowed.
- Pre-load OCO/bracket orders with stop and target; no naked entries.
- Hide P&L during the session; show only position size and risk.
- Keep a trade lockout timer: after a stop-out, a 3-minute reset before any new order.
Continuous Improvement Loop
Edge compounds when the system evolves slowly and intentionally. Change one variable at a time, measure it, and keep what works.
- One tweak per week (e.g., exit trail method) with explicit success criteria.
- Promote a setup from B to A only after 50+ trades with improved expectancy.
- If drawdown hits −6R in a week, cut size by 50% until back to equity highs.
- Quarterly: rebuild the playbook deck with fresh exemplars and anti-patterns.
Personal Rules That Save Accounts
These are the guardrails Umar relies on when emotions run hot. They’re simple, strict, and effective.
- No adding to losers; only add after +1R with a new stop.
- No trading after 3 strikes (three process violations) in a day.
- No revenge trading after a news slip; walk and reset the plan.
- No new trades if you haven’t journaled the last session.
Size Risk First: Cap Losses Per Trade, Per Day, Per Week
Umar Ashraf starts every plan with the downside number, not the upside dream. He fixes risk per trade first—think a small, repeatable slice—so one bad idea can’t dent the week. Then he stacks guardrails: a hard daily max loss and a weekly circuit breaker that forces him to slow down before things spiral. The point isn’t to be timid; it’s to make sure he’s alive for the next A+ setup.
He also uses simple triggers to prevent tilt: stop trading after three consecutive losers, reduce size after a drawdown, and re-earn full size only after a green stretch with clean execution. If volatility expands, he widens stops but cuts size so dollars-at-risk stay constant. His focus is consistency—same risk formula, same brackets, same accountability—so results reflect edge, not mood. That discipline lets Umar compound when he’s right and survive long enough when he’s not.
Trade the Mechanic, Not the Prediction: Rules, Levels, Volume, Acceptance
Umar Ashraf isn’t trying to guess the future; he’s executing a checklist. He defines the key level first, waits for the price to break and accept above or below it, and only then pulls the trigger. Volume must expand on the trigger candle, and the retest has to hold—otherwise the idea is shelved, not massaged. If acceptance fails, Umar cancels the order immediately and resets.
He treats entries like a factory process: opening range defined, retest preferred over chase, and stops placed at the exact invalidation, not a round number. No volume, no trade; no hold above/below, no continuation attempt. If the retest forms but spreads blow out or the candle closes back inside the range, he stands down. The edge is the mechanic—rules, levels, volume, acceptance—not the prediction.
Let Volatility Set Position Size and Targets; Demand Two-to-One Minimum
Umar Ashraf lets the market’s mood dictate how big he swings. When volatility expands, he widens stops to the real invalidation and cuts size so the dollars at risk stay constant. His targets stretch with the tape too—he’ll aim for ATR-based levels or the next clean supply/demand zone, but only if the distance offers at least 2R. If the path to 2R isn’t there because nearby levels crowd the move, he skips the trade without hesitation.
On quiet days, Umar tightens stops, reduces expectations, and accepts that smaller ranges mean smaller paydays. On hot, fast sessions, he keeps the same risk dollars but lets the chart breathe—then scales out systematically at +1R and +2R before trailing the remainder. For options, if implied volatility explodes and crushes risk-to-reward, he either picks tighter spreads and a practical delta or stands down entirely. The theme is consistent: Umar sizes by volatility, sets targets by structure, and refuses anything that can’t pay at least two-to-one.
Diversify by Setup, Timeframe, and Instrument; Avoid Overlapping Correlated Bets
Umar Ashraf spreads risk across how he trades, when he trades, and what he trades. He doesn’t want five trades that are secretly the same bet on the same market regime. One A+ opening-range breakout in a large-cap, one midday catalyst fade, and one late-day trend continuation are three different edges—not three copies. If SPY, QQQ, and two mega-cap tech names are moving off the same macro impulse, Umar treats them as one correlated idea, not four.
He also diversifies by instrument only when the thesis truly differs: stock vs. options, or equity vs. index, but with independent triggers and risk boxes. If two setups would win or lose together 80% of the time, he picks the best and sizes it properly instead of doubling exposure. Time diversification matters too—morning playbook, midday filters, and power-hour structure—so he can participate across sessions without overtrading a single window. The outcome is cleaner: fewer overlapping risks, more distinct shots on goal, and a P&L that reflects multiple edges instead of one amplified bias.
Defined Risk Beats Hope: Preplanned Stops, Scales, and Hard Daily Max
Umar Ashraf builds the exit before he takes the entry. His stop sits exactly at the invalidation level—not a round number, not “a little wider,” but where the trade is objectively wrong. He uses bracket orders so the stop and first target are live from the second one, removing the temptation to negotiate with pain. Hope doesn’t manage risk; preplanning does.
Once in, Umar scales out into strength or weakness using fixed checkpoints—take some at +1R, more at +2R, and trail the rest behind structure. If the trade snaps back and tags the stop, he accepts it; no averaging down, no “give it room,” no moving the line. A hard daily max loss enforces the last line of defense, so one bad morning can’t wreck the week. Defined risk keeps Umar clear-headed, fast on decisions, and free to press the next A+ setup without emotional baggage.
In the end, Umar Ashraf’s edge isn’t a magic indicator—it’s a system that stacks small, controllable advantages and refuses everything else. He starts with risk math before he thinks about gains, fixes his loss per trade, per day, and per week, and uses hard rules to shut down tilt. Volatility dictates position size and stop distance; structure dictates targets. If a setup can’t cleanly pay two-to-one to the next obvious level, he doesn’t touch it. He plans his levels in pre-market, trades the mechanic (break, acceptance, retest, volume), and lets the tape prove the idea before he spends a dollar.
What ties it all together is process discipline. Umar journals relentlessly, tags each trade by setup and context, and prunes anything that can’t show positive expectancy over a real sample. He diversifies by setup, timeframe, and instrument but avoids stacking correlated bets that live or die on the same macro impulse. Entries are rules-based, exits are preplanned with brackets and scales, and a hard daily max keeps him in business when the market is messy. That’s the lesson: build a rulebook you can actually follow, size by volatility, protect capital with non-negotiable stops, and let data—not hope—decide what stays in your playbook.
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