Table of Contents
Jason Leavitt sits down on the Desire To Trade podcast to unpack how he went from restaurant shifts to full-time markets. In this interview, Jason explains the path from part-time to pro, why he founded Leavitt Brothers research, and how a flexible schedule—and later, strict structure—shaped his edge. He matters because he’s blended decades of stock and options experience with a simple, durable playbook rooted in trend, momentum, and disciplined execution.
You’ll learn Jason’s practical roadmap: find your “sweet spot,” practice it relentlessly, then size up selectively when conditions align. He shows how planning trades, placing stops, and sometimes stepping away can beat staring at a five-minute chart all day. Expect clear distinctions between short-term “pressure pop” setups and multi-month trend rides, how to journal what actually works, and when to adapt as market regimes shift—so you trade the environment you have, not the one you wish for.
Jason Leavitt Playbook & Strategy: How He Actually Trades
Core beliefs and edge
Jason Leavitt keeps his edge simple: trade with the trend, focus on strength, and manage risk like a hawk. This section lays out the guiding principles he uses to stay consistent and avoid overcomplication.
- Trade in the direction of the dominant daily trend; skip counter-trend setups unless you have a written play for them.
- Only take A-quality setups; if you can’t define the edge in one sentence, pass.
- Favor liquid names and clear structures; if the chart looks messy, it probably trades messily.
- Let price action and momentum confirm your idea—opinion last, evidence first.
- Build a routine you can repeat on good days and bad; consistency is a performance multiplier.
Markets, timeframes, and tools
He aligns instruments and timeframes to match his temperament: swing first, tactical when conditions demand. Here’s how he narrows the universe and stays aligned with the bigger picture.
- Primary timeframe: daily charts for trend direction; 30–90 minute charts for timing entries.
- Hold time: several days to multiple weeks if the trend persists; same-day exits only when the plan calls for it.
- Instruments: liquid stocks and ETFs; options used selectively to express defined risk.
- Universe: 150–300 high-volume tickers plus sector/industry leaders; refresh weekly.
- Market filter: trade only when the index is above its 50-day MA and breadth isn’t deteriorating.
Finding leaders and avoiding laggards.
Leaders pay you faster and cleaner than the pack. This is how he isolates the names most likely to trend and keeps dead money off the list.
- Rank by relative strength vs. a broad index; trade the top decile, avoid the bottom half.
- Require rising 50-day and 200-day MAs on the daily chart for long setups.
- Prefer fresh breakouts from multi-week bases with expanding volume.
- Eliminate names with overhead supply within 5–8% unless the base clears it.
- Track sector rotation; overweight sectors where 3+ leaders are breaking out together.
Entry setups: breakouts and pullbacks
Jason’s entries are straightforward: breakouts when the coil releases, pullbacks when trends breathe. Use these rules to keep timing tight and risk small.
- Breakout rule: buy above a clearly defined pivot after two closes inside the base’s top 10% range.
- Volume confirmation: breakout day volume ≥ 1.5× 20-day average; if absent, halve size.
- Pullback rule: enter on a higher low into the rising 20- or 21-EMA with a bullish reversal candle.
- No chase: if price is >3% beyond the pivot by the time you act, skip or wait for a retest.
- Invalidation must be obvious on the chart before entry; if you can’t see it, you can’t size it.
Risk sizing and initial stops
Survival comes from aggressive defense. This is how he pre-commits to loss limits and keeps single trades from dictating the week.
- Risk per trade: 0.5–1.0% of account on normal days; 0.25–0.5% when market conditions are mixed.
- Initial stop for breakouts: just below the base low of the last tight cluster or below the 21-EMA, whichever is tighter but still logical.
- Initial stop for pullbacks: below the prior swing low or the 20/21-EMA by 0.3–0.5 ATR(14).
- Position size = (risk per trade) ÷ (entry − stop); round down to nearest lot.
- Never widen a stop after entry; adjustment only tighter, and only when the plan says so.
Trade management: add, hold, or cut
Once in, decisions get mechanical. These rules dictate when he steps on the gas and when he quietly steps aside.
- Add only on constructive strength: a tight three-day flag or retest that holds the 10-EMA with higher lows.
- Maximum adds: two; total risk after adds must not exceed original per-trade risk × 1.5.
- If a breakout closes back inside the base on day one, cut to a half position; if it closes below the base low, exit all.
- If price stalls for 5–7 sessions with a declining range, reduce 25–33% to free risk.
- If the index breaks its 50-day and your name lags, tighten stops to the 10-EMA and stop adding.
Exits: targets, trails, and time stops
Profit exits are preplanned, so the market can’t talk you into giving back weeks of work. Choose the exit that matches the setup you entered.
- Partial at R multiples: take 1/3 at +2R, move stop to breakeven; take another 1/3 at +3R, trail the rest.
- Trend trail: use a close below the 21-EMA (swing) or 10-EMA (faster trend) to exit the remainder.
- Structure target: measured move = base height added to the breakout level; scale near there.
- Time stop: if price hasn’t advanced 2× risk within 10 trading days, exit on the first sign of weakness.
- Gap management: if a gap opens 2× beyond your target, sell into the open for at least half.
Using options for defined risk
Options are a tool, not a lifestyle choice. When volatility or capital efficiency matters, he uses simple structures to keep the edge intact.
- For breakouts, buy calls 45–60 DTE, delta ~0.50–0.65; risk = premium paid (no stop needed).
- For pullbacks, use call diagonals to cheapen exposure; close the short leg if the trend accelerates.
- Avoid weekly options for swing trades; theta will bully you out of good ideas.
- Exit options on technical invalidation, even if the premium lingers—honor the chart.
- Position sizing in options mirrors stock sizing by converting to stock equivalent delta.
Daily and weekly routine
Routine reduces randomness. Here’s the cadence that keeps him objective and prepared.
- Weekend: top-down review of indices, sectors, and 52-week highs; build an A-list of 20–40 names.
- Pre-market: confirm market filter, update key levels, mark two scenarios (breakout vs. pullback).
- During session: set alerts at pivots; no impulsive entries between alerts.
- After close: grade each position (A/B/C), log emotions, and tag setups that matched the playbook.
- Weekly clean-up: delete tickers that broke structure; promote fresh leaders.
Journaling and metrics that matter
He treats trading like a craft. The journal isn’t a diary—it’s a scoreboard that guides improvements.
- Track by setup: breakout-base, pullback-EMA, and continuation-flag; record win rate, payoff ratio, and average hold.
- Note context: index trend, sector strength, and breadth on entry day.
- Record “reason to exit” in one phrase (e.g., “close <21-EMA,” “failed retest,” “+3R hit”).
- Review monthly: keep the top two performing setups, cut the bottom one until it improves in sim.
- Flag rule breaks; any rule break halves the size for the next 5 trades.
Adapting to regimes
Not every market pays the same way. He scales aggression when the wind’s at his back and tightens up when conditions sour.
- Expansion regime (rising index, wide leadership): allow two adds and wider trails (21-EMA).
- Choppy regime (flat index, mixed breadth): no adds, tighter trails (10-EMA), and quicker partials.
- Contraction regime (falling index, weak breadth): trade smaller (≤0.25% risk), favor mean-revert bounces or sit out.
- Raise the bar: require better bases and cleaner volume in worse regimes.
- Downgrade targets by 20–30% when volatility compresses; upgrade when ATR expands.
Common pitfalls to avoid
Most damage comes from a few repeatable mistakes. These are the traps he eliminates by rule.
- Don’t average down; scale only into strength with fresh risk, never into weakness.
- Don’t marry opinions or narratives; marry your risk parameters.
- Don’t chase extended candles; the retest pays you with tighter risk.
- Don’t let a winner turn into a loser; trail stops objectively and honor them.
- Don’t trade boredom; no setup, no trade—log off and protect your energy.
Quick checklist before placing a trade
A final pre-flight check keeps execution clean. If an item fails, the trade waits.
- Market filter green? (index above 50-day and breadth okay)
- Ticker a leader with rising 50/200-day MAs?
- Set up typed and tagged? (breakout or pullback)
- Entry, stop, size, and first target written down?
- Alerts placed and time-stop defined?
Size risk first: define dollar loss, then calculate position precisely.
Risk comes before charts. Jason Leavitt starts every trade by deciding the exact dollar amount he’s willing to lose, then backs into position size using that number and the stop location. This flips the usual “how many shares can I buy?” question into “how little can I lose if I’m wrong?” It keeps emotions in check and makes every setup comparable, whether it’s a slow grinder or a high-volatility runner.
Once the dollar risk is set, Jason Leavitt measures the distance from entry to an objective stop—swing low, EMA break, or base low—and uses that to compute share count. If the size spits out too small to matter, he skips the trade; if it’s oversized, he tightens the stop or passes. He never widens a stop to fit a bigger position—price structure sets the stop, not the desire to size up. Over time, this discipline turns random outcomes into consistent math, where winners grow and losers stay contained.
Trade with trend mechanics, not predictions; let price action confirm entries
Jason Leavitt treats forecasts as distractions and mechanics as the edge. He starts with the dominant trend on the daily chart, then times entries on a lower timeframe only if that bigger direction is intact. Higher highs and higher lows matter more than opinions or headlines, and he waits for confirmation instead of guessing tops or bottoms. If the trend isn’t clear, Jason Leavitt simply stands aside rather than make a call.
Confirmation is earned, not assumed. He looks for clean breakouts from bases or pullbacks to rising moving averages, and he wants a decisive close, not a flicker intraday. Volume and range expansion seal the deal; without them, he halves the size or skips the trade entirely. By forcing the price to prove the idea first, he reduces false starts and keeps his energy for moves that are already in motion.
Use volatility-based position sizing and trailing exits to lock gains.
Jason Leavitt adapts size to the stock’s personality so one wild name doesn’t hijack the whole account. He measures recent volatility—think ATR or average true range behavior—and reduces position size when ranges expand, while allowing slightly larger size when ranges contract. This keeps per-trade dollar risk constant even as conditions change. By normalizing risk to volatility, Jason Leavitt ensures a fair fight across tickers instead of letting the noisiest chart dominate results.
Exits trail the move, not hopes. He ratchets stops under swing lows or a rising short-term moving average, letting price pay him to stay while protecting open profit. When volatility expands and candles get sloppy, he tightens the trail; when a trend is smooth, he gives it more room. This combo—volatility-aware sizing plus dynamic trailing—locks in gains without choking the trade at the first wiggle.
Diversify by underlying, strategy, and time; avoid correlated pain.
Jason Leavitt spreads risk so no single theme can wreck his month. He caps exposure per sector and factor, making sure leaders from the same group don’t secretly march to the same drum. If three names share the same catalyst or earnings week, he picks the best one and lets the rest go. By mixing stocks, ETFs, and the occasional options structure, Jason Leavitt smooths the equity curve without watering down the edge.
He also diversifies by playbook and by time. A breakout, a pullback, and a continuation flag behave differently across regimes, so he limits how many of each he holds at once. Entry times are staggered—no “all on one day” portfolio—so exits naturally ladder and reduce cluster risk. When correlations spike, he throttles back gross exposure, trims overlapping names, and keeps only the cleanest chart from each bucket.
Prefer defined risk structures; preplan stops, targets, and timeouts.
Jason Leavitt wants every trade boxed in before a single share is bought. He writes the entry, stop, and first target in plain numbers, then sizes the position so the stop equals the predetermined dollar risk. The plan includes a “what invalidates this idea” statement to kill hope quickly. By committing up front, he removes wiggle-room that turns a small loss into a portfolio problem.
He favors structures that cap downside: hard stops for stock, and when using options, defined-risk buys that limit loss to premium. Timeouts are part of the plan—if the price doesn’t move a set multiple of risk within a set number of days, Jason Leavitt exits without debate. Targets scale him out into strength and convert open profit into cash, while a trailing stop protects the remainder. On gap days, he executes the plan mechanically, taking partials into favorable gaps and honoring exits on adverse ones.
Jason Leavitt’s core lesson is to make the market do the heavy lifting while you protect the downside. He starts with the dominant trend on the higher timeframe and only engages when price confirms with clean breakouts or orderly pullbacks—no guessing tops, no bottom fishing. Every trade begins with a fixed dollar risk, then position size is calculated from an objective stop, so losses are small and comparable across names. As volatility changes, he adapts size and room, tightening when candles get sloppy and relaxing when trends are smooth. The goal is consistency: the same checklist, the same entries, the same exits—so results come from process, not from a lucky call.
From there, Jason Leavitt stacks the odds with leadership and diversification. He hunts strong stocks and sectors, trims overlapping exposure, and avoids loading up on highly correlated themes that can sink the whole book in one swing. He scales only into strength, trails winners methodically, and uses time stops to free capital when a trade stalls. When conditions deteriorate, he dials back risk, raises the bar for setups, or simply stands aside—because patience is a position. And through journaling and periodic review, he keeps refining his “sweet spot,” doubling down on what actually pays and cutting what merely looks good on paper.
