Table of Contents
In this Words of Rizdom interview, Kimmel Trading sits down with host Riz to unpack the viral “testing Mamba FX signals” saga—why it blew up, what was actually measured, and where beginners get misled. You’ll meet a trader who documents everything, calls out red flags like edited signals and missing stop-losses, and still keeps the conversation balanced: profitable calls can happen, but risk management and transparency matter more than hype. Kimmel’s journey—from signals newbie to consistent discretionary trader—sets the context for why his perspective carries weight for anyone starting.
Reading this, you’ll learn the essentials Kimmel pushes: why blindly following signals is a bad trader strategy, how to size risk only after defining a stop, and how to judge TP/SL structures so bots don’t “look” profitable while users lose. He also breaks down realistic timelines to consistency, what finally clicked for him (cleaner ICT-style reads, simpler playbook), and level-headed ways to handle drawdown and prop challenges without blowing up. If you’re new, expect clear, beginner-friendly takeaways you can apply to your next trade—not dreams, just durable habits.
Kimmel Trading Playbook & Strategy: How He Actually Trades
The Daily Bias: Build a Simple Plan Before the Bell
Every day starts with a quick-and-dirty read on direction, key levels, and the instruments worth your attention. The goal isn’t prediction—it’s narrowing focus so your entries feel obvious when price gets there. Keep it fast, consistent, and repeatable.
- Identify overnight high/low, previous day high/low, and session open; draw only these levels.
- Mark a single “decision zone” (DZ) where liquidity is likely: prior H/L ± a small buffer (e.g., 0.10% for indices or 5–15 pips FX).
- Define bias: “Look for longs above prior high pullbacks; look for shorts below prior low rejections.”
- Predefine invalidation: if price reclaims the opposite side of your bias level and holds for 5 minutes, bias flips, or you stand down.
- Choose at most two tickers/pairs for the session; everything else is muted.
A-Setups Only: Tight Definitions That Don’t Drift
You need crystal-clear patterns so you can say “this is it” or “it’s not.” By naming and bounding your A-setup, you remove 90% of hesitation and revenge trading. Think physics, not vibes.
- A-Setup (reversal): Sweep of prior H/L into DZ → strong rejection candle (body closes back inside range) → immediate follow-through within 2 candles.
- A-Setup (trend continuation): Pullback to VWAP/20EMA that aligns with bias, with wick rejections and decreasing pullback volume.
- Disqualifiers: wide-range news candle within the last 10 minutes, overlapping chop (3+ inside bars), or ADR already 90% consumed.
- Require confluence: level + trigger candle + session timing (first 2 hours or power hour).
- If 2 of 3 ingredients are missing, pass. No “B-setup” trades until you’ve booked at least +1R on the day.
Entry Triggers: From “Looks Good” to “Click It”
Entries must be binary: either the rule happened or it didn’t. This section turns the A-setup into precise triggers so you stop second-guessing and start executing.
- Reversal entry: place limit at 50%–62% retrace of the rejection candle; cancel if not tagged within 3 candles.
- Continuation entry: buy/sell stop 1 tick beyond the trigger candle high/low after the pullback; cancel if next candle is an inside bar.
- Time filter: no fresh entries in the first 3 minutes after open; no fresh entries in the final 5 minutes of the session.
- Spread/latency check: if spread > 30% of intended stop size, skip the trade.
- One-click bracket: auto-attach stop and take-profit with fixed R multiples (see Risk section).
Risk & Sizing: Survive First, Scale Second
Consistency comes from uniform risk and a known distribution of outcomes. Make sizing boring and mechanical so your psychology isn’t negotiating mid-trade.
- Fixed fractional risk per trade: 0.25R–0.5R for prop challenges; 0.75R max on personal accounts with buffer.
- Stop placement: beyond the wick that invalidates your thesis (reversal = beyond sweep; continuation = beyond pullback pivot + buffer).
- Hard daily stop: -1.5R; if hit, stop trading immediately for the day.
- Equity curve rule: reduce risk by 50% after a -3R drawdown; restore after two consecutive green days.
- No averaging down. Only scale-in if price retests entry with structure intact and total risk stays ≤ initial planned R.
Trade Management: Let Winners Breathe, Kill Losers Fast
You can’t control distribution, but you can control when you step aside. This framework protects your average win while cutting the tail on your losers.
- Move to breakeven after +1R and a structure confirmation (higher low/lower high forms in your favor).
- Partial at +1R (25% off) and trail the remainder using swing structure or 8/20 EMA cross on your execution timeframe.
- If price stalls for 5 consecutive candles without progress and ADR is nearly consumed, close the remainder.
- News proximity: if a red-folder event is inside 2 minutes and you’re < +1R, flatten; > +1R, tighten to breakeven and let it ride.
- End-of-session rule: flatten any open trades 2 minutes before close unless already > +2R with trailing stop in place.
Timing & Sessions: When the Edge Actually Shows Up
Not all minutes are created equal. Trade when liquidity is real and patterns behave; ignore the dead zones that torch discipline.
- Primary windows: 9:35–11:15 and 14:00–15:55 (New York); for FX, focus on London open + NY overlap.
- First touch best touch: prioritize the first clean reaction to your DZ; odds decay on subsequent touches.
- Skip lunch chop: if ATR compression shows (3 consecutive smaller candles, volume fades), step away.
- Friday rule: half risk after noon; no new trades in the last 30 minutes unless you’re executing a pre-validated news play.
- Monthly rollover/major expiration days: treat as “A-setups only,” no countertrend scalps.
News & Volatility Filters: Avoid the Fake Edge
High-impact prints can distort entries and stops. Build a simple protocol so you’re never “surprised” into a bad decision.
- No entries 2 minutes before or after tier-1 releases (CPI, NFP, FOMC, policy rate).
- If already in a trade, reduce to core size into the event or tighten stop to breakeven if > +1R.
- Expand stop size by 1.5× and cut size by 1/3 if trading a post-news continuation within the first 10 minutes.
- If the initial impulse fully retraces within 3 candles, stand down for 15 minutes—probable whipsaw regime.
- Record realized range vs. ADR post-event; if 90%+ ADR consumed, switch to mean-reversion rules only.
Prop Challenge Mode: Guardrails That Pass
Passing requires risk containment and a smooth equity curve, not hero trades. These rules keep you in the game and protect evaluation metrics.
- Max 1R total exposure at any time; no stacking correlated positions.
- Cap per-day target at +2R; stop trading once hit to preserve stats.
- Drawdown clamp: if equity drops -2R from peak in a day, stop; if -4R from peak on the account, pause trading for 48 hours.
- Weekend rule: no positions held through the weekend or major gaps.
- Scale risk by account phase: evaluation 0.25R, verification 0.35R, funded 0.5R with partials.
Playbook Examples: What “Good” Looks Like
Concrete templates remove ambiguity. Use these as literal checklists before you click.
- Reversal template: prior day high sweep → rejection close back inside → enter on 50% retrace → stop 1 tick beyond swing → partial +1R → trail under/over HL/LH structure → target +2R to +3R.
- Continuation template: NY open push, pullback to VWAP/20EMA with shrinking pullback range → trigger candle break → stop below/above pivot → partial +1R → trail with 8/20 EMA cross → exit on momentum stall.
- Failed breakout template (mean reversion): breakout closes above level but next candle closes back below with range expansion → enter toward re-entry into range → stop beyond failed extreme → target mid-range or VWAP.
Journaling & Metrics: Make the Edge Measurable
If you can’t measure it, you can’t scale it. Track only what drives expectancy so you iterate faster without drowning in data.
- Log per trade: setup tag (REV/CONT), session time, R multiple risked, partials taken, final R result, and cause of exit.
- Weekly review: win rate by setup tag, average R per setup, time-of-day heatmap; cut any setup with < 0.3R expectancy over 20 samples.
- Pre-market note: plan vs. outcome—did price react at DZ? If not, was the bias wrong or execution early?
- Screenshot routine: 1 image at entry, 1 at exit, 1 annotated post-mortem with what would have improved R.
- Rule violations get a red flag and automatic 24-hour cooldown at half size.
Psychology & Discipline: Fewer Decisions, Better Decisions
You don’t need more willpower—you need fewer choices. Lock rules in, automate what you can, and trade the plan, not the feelings.
- Pre-commit: written bias + DZ + setups allowed; if it’s not on paper, it’s not tradable.
- Limit to 2 attempts per setup per session; third attempt is a session stop.
- Use a visible timer: 60-second cool-off after a loss before any new order.
- Hide P&L during the session; check it only at the end of each window.
- End-of-day reset: rewrite tomorrow’s DZ and delete today’s drawings—fresh chart, fresh mind.
Charting & Tools: Keep It Clean, Make It Fast
Less clutter equals faster reads and fewer impulse trades. Standardize the workspace so every day feels the same.
- Timeframes: HTF 1H/4H for levels, execution on 1–5 minutes; no lower than 1 minute.
- Indicators: VWAP, 8/20 EMA, session ranges; no oscillators during open.
- Templates: one “Reversal” layout, one “Continuation” layout—hotkey switch between them.
- Alerts at DZ boundaries with a single tone; disable all other notifications during the session.
- DOM/spread glance at entry only; if spread widens beyond plan, cancel and wait for the next candle.
Size Risk First: Fixed Risk Per Trade Beats Every Emotional Decision
Kimmel Trading starts every session by locking in a predefined loss per trade, then sizes the position from the stop distance—never the other way around. That rule makes wide stops equal smaller size and tight stops equal larger size, keeping total risk constant while market conditions change. By committing to the number before the setup, Kimmel Trading removes the urge to nudge stops, average down, or chase candles. The math is set; the execution either fits the box or it doesn’t.
He also runs a hard daily loss cap, so one mistake can’t spiral into tilt. Kimmel Trading treats 1R as a normal business expense, closes the trade, and resets without debate. Bracket orders and alerts are pre-programmed to block mid-trade improvisation. The result is clean data, uniform losers, and room to let winners do the heavy lifting. Consistency comes from the rule, not the feeling.
Let Volatility Drive Allocation: Widen Stops, Cut Size In Wild Markets
Kimmel Trading lets the market’s mood set the risk knobs. When ATR expands or spreads widen, he increases stop distance to match the new noise floor and reduces position size so the dollar risk stays identical. If volatility compresses, he tightens stops and allows slightly bigger size—but only within the same fixed risk per trade. The principle: volatility dictates distance, distance dictates quantity.
Kimmel Trading also adapts expectations to the regime. In a high-volatility phase, he takes profits faster at first targets and trails the remainder, while in calm conditions, he’s patient and lets the trend breathe. He avoids stacking correlated positions when ranges explode, treating correlation as hidden leverage. This way, the account survives the storm and is ready to press when the seas calm.
Diversify Smartly: Mix Underlyings, Playbooks, And Holding Durations For Resilience
Kimmel Trading spreads risk across different instruments and tactics so no single market mood can wreck the day. He rotates between indices and FX when correlations spike, and he keeps both reversal and trend-continuation plays ready so the plan doesn’t die when the environment flips. Position duration is part of the diversification too—scalps for immediate opportunity, intraday swings for clean structure, and occasional holds into the next session when momentum is undeniable.
Kimmel Trading also avoids stacking look-alike trades that secretly double exposure, preferring one best idea per theme. If he takes a reversal in one index, he won’t mirror it in a correlated index; he’ll look for a continuation setup elsewhere or skip entirely. He tracks results by underlying, setup tag, and hold time so the data shows which mix actually lowers variance. Over time, the basket of uncorrelated edges smooths the equity curve and keeps confidence intact through inevitable cold streaks.
Trade Mechanics Over Prediction: Rules, Triggers, And Timers Run The Show
Kimmel Trading doesn’t guess direction—he engineers it with procedures. Each session starts with a simple plan: key levels mapped, one or two A-setups defined, and a clear invalidation that flips bias or parks him on the sidelines. Entries fire only on trigger events—sweep-and-reject back inside a level, or a pullback that prints a decisive break of the trigger candle—not on “it feels like it.” A visible timer keeps him honest: if the setup doesn’t trigger within a few candles or minutes, the order is canceled and attention returns to the plan.
He also runs the trade by stopwatch, not hope. If a position is green but fails to advance after a set number of bars, Kimmel Trading tightens or exits, treating time decay as information. After any loss, there’s a mandatory cool-off before the next order, and never more than two attempts per idea per session. The result is outcome-independent execution: rules make the decisions, and the P&L simply records whether the market agreed today.
Respect Risk Profile: Prefer Defined Risk, Avoid Undefined Blowup Exposure
Kimmel Trading builds every idea around a known worst-case number before clicking buy or sell. That means hard stops on directional trades, bracketed orders, and zero tolerance for averaging down as a “plan.” He won’t touch structures with unlimited downside like naked short options or martingale add-ons; if he uses options, it’s defined-risk spreads with fixed max loss. Overnight holds are sized smaller or avoided entirely unless the gap risk is explicitly accounted for. Kimmel Trading treats correlation as hidden leverage—one theme, one position—so a single headline can’t nuke the book.
He also plans for the tail instead of pretending it won’t show up. If spreads widen or liquidity thins, size ratchets down so the same cash risk survives worse fills. Stop placement lives beyond invalidation, not inside the noise, and slips are part of the budget, not a shock. Weekend and event risk get their own rules: either flatten or cut size and tighten risk to breakeven once the trade pays. This way, defined risk keeps the floor intact while open-ended disasters never get an invitation.
Kimmel Trading’s core message is disarmingly simple: protect the downside, standardize the process, and let time compound the edge. He treats risk as a fixed cost of doing business—size comes from the stop, not the other way around—and he enforces a hard daily loss cap to prevent one bad idea from becoming a bad day. Volatility is a setting, not a surprise: when ranges expand, he widens stops and cuts size so the dollar risk stays constant; when markets calm, he tightens everything and lets moves breathe. The result is uniform losers, scalable winners, and an equity curve that survives the chop.
He also diversifies on purpose—by underlying, by playbook, and by holding duration—so a single regime shift can’t wreck the week. Mechanics beat prediction in his world: pre-mapped decision zones, binary triggers, timers, and cancel-if-not-filled rules replace guesswork and gut feel. Every trade has defined risk and a known worst-case number; no martingale, no naked blow-up exposure, and no stacking correlated positions that secretly multiply risk. Layer on disciplined journaling, session windows where his edge actually shows up, and prop-friendly guardrails, and you get the real takeaway from Kimmel Trading: a repeatable operating system that turns market uncertainty into a manageable set of decisions—one predefined R at a time.
Related posts:
- Trader Strategy Deep Dive: Lessons from a Pit Legend
- Trader Strategy Deep-Dive: Steven Dux on Turning $27k into Tens of Millions
- Trader Strategy Deep-Dive: Zach “Fair Value God” Smith on Futures, ICT, and Discipline
- Trader Strategy Deep-Dive: How a Crypto & FX Veteran Built a Repeatable Edge
- Trader Strategy Deep-Dive: Sang Lucci on Timing, Tape, and Tough Lessons
- Unlocking Success with Prop Firms: Insights from Kimmel’s Simple Trading Strategy
- Trader Strategy Spotlight: Trader Nick on Building Real, Steady Edges
- All-Female Trader Strategy Roundtable: Lessons, Mindset, and Strategy from Miami
- A Trader’s Trading Strategy Playbook: Why Tom Sosnoff Says “Trade Small, Trade Often”
- 90% Winning Rate Edge – Prop Trader Trading Strategy Description!
- Trader Strategy Masterclass with Chris Tubby
- NYC Day Trader Strategy: Carmine’s Risk-First Playbook
