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Riz sits down in Miami with veteran trader Sang Lucci—real name Anan Sangi—for a candid Words of Wisdom podcast interview about the realities of the game. Lucci’s been trading since the mid-2000s, built his name on tape reading and options, and he isn’t shy about wins, losses, and what it actually takes to stay in the arena. It’s an easy listen, but the takeaways hit hard, especially if you’re newer and trying to separate hype from habits.
In this post, you’ll learn how Lucci frames timing as the core of any strategy, why acknowledging your bias (long, short, or otherwise) saves accounts, and how to read panic and euphoria straight off the tape. We’ll unpack his views on prop/funded models, the math behind why most traders struggle, and practical ways to protect yourself from oversizing, revenge trading, and turning winners into losers—so you can extend your career and grow with intention.
Sang Lucci Playbook & Strategy: How He Actually Trades
Core Edge: Tape + Flow + Structure
He builds every decision off real-time flow: the tape (time & sales), liquidity on the book, and how those align with key structures like prior day’s high/low and VWAP. If price, volume, and options flow fire together, he presses; if they desync, he stands down.
- Trade only when all three align: tape acceleration + liquidity shift + level break (PDH/PDL, opening range, or VWAP).
- No alignment in 60 seconds? Cancel the idea—do not “wait for it to work.”
- Flow filter: ignore prints below 0.25× the average recent print size; focus on outlier sweeps and repeats.
- If a level breaks but the book refills at the same price within 3 seconds, treat it as a trap and fade with half size back to VWAP.
The A+ Setup: Momentum Burst From Liquidity Vacuum
He looks for a thin area in the order book where the price can jump multiple ticks in seconds. The goal is to catch the first clean burst, scale, and then trail into the second leg if the flow continues.
- Identify a 5–10 tick vacuum (or ~0.10% gap zone on large caps) on the DOM pre-break.
- Enter marketable only when a 2× average print hits the vacuum and price moves >0.15% in <10s.
- First scale at +0.25R, second scale at +0.75R, hold core for 1.5–2R into next level.
- If the burst stalls for >20s without new highs/lows, exit to flat—no “hope holds.”
Tools & Screens He Actually Watches
Keep screens simple: one high-liquidity name, T&S, Level II, VWAP, and an options-flow blotter. Fewer symbols means a deeper read on the one you’re trading.
- Limit your universe: 3 symbols/day max; trade 1–2.
- Must-have: Time & Sales, L2, footprint or volume-by-price, and VWAP + previous day’s OHLC.
- Options flow: only react to repeat sweeps in the same expiry/strike within 3 minutes.
- If the spread widens >30% over the last 5 minutes, treat signals as low quality—skip.
Risk & Sizing Rules
He sizes based on real risk to the invalidation level, not greed. The job is to buy time to see more tape, not to be a hero on the first click.
- Daily max loss = 1.5× average green day. Hit it? Power down.
- Per-trade risk (R) = 0.5–0.8% of account; never above 1%.
- First entry = 0.5 position; add only if price expands ≥0.3R in your favor and tape still accelerates.
- Two consecutive losing trades in the same name? Switch symbols or stop for 60 minutes.
Entries That Don’t Hesitate
Entries must be clean: a level break with instant continuation and supporting flow. If there’s hesitation, he aborts quickly.
- Long: break above opening range with new high + accelerating prints + shrinking offer; stop under opening range low or VWAP, whichever is closer.
- Short: same logic inverted at breakdowns; stop above opening range high or VWAP.
- If price revisits entry within 30s without new volume, scratch to small red or flat.
- Never average a loser unless it’s a planned liquidity add at predefined second level; if not written pre-trade, don’t do it.
Exits & Scaling That Lock Progress
He scales fast to get paid, then trails the core behind structure. The goal is to create a “free trade” early and let the tape decide if the move deserves more.
- Scale 30–40% at +0.25–0.35R to cover risk.
- Move stop to breakeven once +0.5R prints and flow stays aligned.
- Trail the core behind VWAP or last 1-minute swing (whichever is tighter) only after you’ve paid yourself.
- If the delta of the move compresses and 1-minute closes against the trend twice, hit out.
Using VWAP Like a Pro
VWAP anchors institutions; he uses it to define who’s in control. Respecting VWAP keeps you from fighting the strong side.
- Trend day: trade only in VWAP direction; counter-trend ideas require half-size and faster stops.
- First touch of VWAP after a strong impulse: take the continuation with a stop of 0.1–0.2% through VWAP.
- If price lives >15 minutes on the wrong side of VWAP vs. your bias, abandon bias.
- Failure to reclaim VWAP within 3 attempts = trend confirmation the other way.
Options Tactics (When He Uses Them)
His options work the equity tape; the contract is just the vehicle. Keep expiries close for momentum, farther for swings.
- Momentum: buy weeklies 1–2 expiries out, delta 0.35–0.45, sell half at 20–30% pop, run a stop at entry –30% of premium.
- Swing: choose 2–4 weeks out, delta 0.45–0.55, scale at +40–60%, leave a runner to +100% or time stop (next session’s open).
- If IV spikes >10% post-entry without price follow-through, reduce—you’re getting paid by volatility, not direction.
- For stubborn trends, convert to a vertical: sell the +1 or +2 strikes to lock theta and cap risk.
Pre-Market Game Plan
He walks in with a plan, not vibes. The plan limits the day’s symbols and levels so execution becomes mechanical.
- Write one sentence per symbol: bias, key levels (PDH/PDL, gaps), and trigger conditions.
- Mark two trade windows: 9:30–10:30 and power hour; outside those, only take A+ tape.
- If ADR (average daily range) is already >70% by 10:45 with sloppy tape, protect gains and reduce frequency.
- News/Catalyst Day? Trade only the leader; no more than 2 attempts per direction.
Reading & Fading Traps
He loves catching the moment when a fake break reverses hard. The tape tells you—refills, failed pushes, and chunky algos showing up late.
- Fake break signal: breakout candle but no new prints above the break and book refills in ≤3s → fade back to range with 0.5 size.
- Add only on a lower high/higher low, plus fresh selling/buying on T&S.
- Target VWAP first; push for range opposite edge only if flow stays heavy.
- If trap doesn’t pay >0.3R in 2 minutes, exit—no grindy traps.
Holding Through Pain (When It’s Earned)
He’ll hold discomfort only when the read is crystal: structural level, big-time flow, and clean higher-timeframe trend.
- Allow one pullback to VWAP after the first scale if the higher timeframe trend is intact.
- If the pullback breaches VWAP and closes beyond it, reduce to runners.
- Time stop: if after 15 minutes you’re still not >0.5R, recycle capital.
- Never widen stops after entry; you can re-enter on the next alignment, but you can’t resurrect discipline.
Journal Metrics That Actually Improve P&L
He tracks a handful of metrics that correlate with performance. Keep the loop tight and actionable.
- Win rate on A+ vs. B setups (expect +15–25% gap); cut B setups if equity curve dips.
- Average first scale time (target <90s) and % of trades that pay 0.25R (target >60%).
- Hold-to-hurt ratio: how often you let a winner turn red (target <10%).
- Session discipline score: # of plan violations (target 0–1/day); exceed 2, stop trading.
Intraday “Guardrails” He Uses
These rules keep him from bleeding on the chop and from giving back the day late.
- No new positions in the last 15 minutes unless trend day with tape still accelerating.
- Two strikes and out on the same idea; the third attempt requires a fresh catalyst.
- If you give back >40% of peak P&L, hard stop the day.
- Green early? Shift to only A+ conditions—treat afternoon as capital preservation + selective press.
Swing Overlay (When Not Day Trading)
He’ll carry swings when the daily structure and tape agree. Still, the same discipline applies: planned adds and fixed invalidations.
- Entry on daily level break/reclaim with volume ≥1.5× 20-day average.
- Stop below/above daily swing by 0.25× ATR(14); first target at 0.75× ATR(14), second at 1.5× ATR(14).
- Add only on inside-day break in your direction with no IV spike against you.
- If earnings or macro risk can nuke the thesis, halve size or hedge with a vertical.
The Mindset That Keeps Him In The Game
His edge isn’t a secret indicator; it’s disciplined execution of simple reads, day after day. The work is boring by design—so the account isn’t.
- Define your one setup in a sentence and say no to everything else for 20 sessions.
- Process over P&L: grade the trade on adherence, not dollars.
- Build “automatic pauses”: after any 1R trade, step away for 5 minutes—reset, re-read, then act.
- Protect confidence: one small green day is better than swinging for a big one and tilting.
Size Risk First: Fixed R Per Trade, Never Average Losers
Sang Lucci treats risk like a line you don’t cross—ever. He decides on a fixed R (small, consistent % of equity) before he even looks for an entry. That R determines position size from the stop back, so the dollars at risk are the same whether volatility is calm or wild. If the stop hits, he accepts it instantly and moves on, no edits, no “one more tick.”
Lucci’s rule on averaging down is a hard no. He only adds when the trade is working and momentum confirms, never to “repair” a bad read. First scale comes quickly to convert risk into realized progress, then he trails structure, not hope. The mindset is clean: every trade is pre-paid, replaceable, and governed by the same math—so Sang Lucci can play the next A+ setup with full confidence.
Let Volatility Decide: Scale Exposure With ATR and Implied Vol Regimes
Sang Lucci treats volatility as the throttle, not a distraction. He anchors stops at the point where the setup breaks, then sizes the position so the dollar risk (R) stays constant as ATR breathes. When ATR expands, he cuts size automatically; when ATR contracts, he allows a touch more size and wider patience. He also reads implied volatility to tag regimes—high IV means faster scales and tighter leashes, low IV allows more time-in-trade.
Lucci’s process is mechanical to avoid mood-driven errors. If ATR doubles week over week, position size halves on the next trade—no debate. In hot regimes, he takes partials quickly to bank progress before snapbacks; in cool regimes, he lets winners work toward the next level or VWAP push. If IV spikes without price confirmation, he reduces exposure because he wants real participation, not just option premium noise. It’s simple and repeatable: let the tape set distance, let the math set size, and let Sang Lucci’s rules keep your equity curve steady.
Diversify Smart: Mix Underlyings, Strategies, and Holding Durations For Resilience
Sang Lucci spreads risk across different engines so one bad rhythm can’t wreck the day. He rotates between indices, liquid large-caps, and a couple of non-correlated movers, keeping each bucket capped so a single theme never dominates P&L. He pairs momentum bursts with selective mean-reversion and a swing overlay, letting whichever style is in phase do the heavy lifting.
Lucci also diversifies by time. When morning ranges compress, he dials back scalps and lets the swing book breathe; when daily structure is messy, he leans on clean opening-range momentum. He won’t double up exposure to the same driver—no full-size long in the stock plus full-size long in calls on the same thesis. Each bucket has its own rules, its own risk limit, and its own scorecard, which is how Sang Lucci keeps the equity curve smoother through regime shifts.
Trade Mechanics Over Prediction: Systematic Entries, Predefined Exits, Ruthless Trade Management
Sang Lucci doesn’t guess where price “should” go—he executes what the tape is doing now. He waits for a written trigger (e.g., opening-range break with accelerating prints or VWAP reclaim with higher lows), then places the stop at invalidation before clicking. First scale is planned, not felt, converting risk into booked progress fas, so the trade becomes easier to hold. If momentum pauses on the clock instead of the chart, he scratches—process over opinions.
Management is a checklist, not a vibe for Sang Lucci. Trailing only starts after the first scale, typically behind VWAP or the last 1-minute swing, and never widens past the original risk. If spreads widen or slippage shows up, he auto-halves size on the next attempt. Two failed stabs at the same idea? He stands down or switches symbols—no third try without a new catalyst.
Choose Your Risk: Defined Spreads For Control, Undefined Only With Strict Caps
Sang Lucci frames every option decision around the maximum loss he’s willing to accept before he even places the trade. He favors defined-risk structures—debit spreads, credit spreads, calendars—because the downside is capped, the margin is predictable, and emotions stay out of the driver’s seat. Profit-taking is prewritten: partial at a realistic threshold, then manage the remainder against structure or time. If a spread’s thesis breaks, he exits without “repairs” or rolling games that just extend pain.
When he does touch undefined risk, Lucci treats it like handling fire: tiny size, hard portfolio limits, and strict event filters. He avoids naked exposure to earnings or macro catalysts and will add wings or convert to verticals if volatility shifts against him. If IV pops without price cooperation, he reduces or reshapes the position because he wants real participation, not just premium noise. The point is discipline: choose your risk on purpose, cap it in writing, and never let a single trade endanger the account.
Sang Lucci’s lasting lesson is that real edge lives in simplicity, discipline, and timing. He’s been at this since 2006, built on tape reading, and keeps the game brutally straightforward: read buyers and sellers, act when it’s clear, and step aside when it’s not. That means no forcing narratives onto price, no adding your baggage to the chart, and no pretending complexity equals edge. When the tape aligns and a level gives, he trades; when it doesn’t, he doesn’t—because consistency comes from mechanics, not predictions.
He also makes the risk math do the talking: size to the setup and the regime, press only when odds are stacked, and accept that concentration on A+ moments is how you pay for all the scouting. That mindset kills the urge to average down or “make it back” and replaces it with planned aggression at the right time. Beyond charts, he’s candid about aligning the craft with the life you actually want—owning your process, your environment, and your transparency, not anyone else’s image of a trader. Takeaway: simplify to what matters (tape, levels, timing), let volatility set size, take the big swing when the read is clean, and let everything else go.
