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In this YouTube live interview, Jerremy Newsome sits down to break down how real traders can safely grow with OPM—other people’s money. Jerremy’s known for his high-energy teaching and practical risk rules, and here he explains why funded accounts and prop setups can accelerate your journey without wrecking relationships or blowing up small accounts. You’ll hear where OPM fits, why he prefers equities, and how strict daily limits and freezes help you learn discipline fast.
In this piece, you’ll learn Jerremy’s playbook for getting funded, setting daily risk caps, and proving consistency before scaling size. We cover how prop firm rules protect you from tail-risk days, why to avoid friends’ and family money, the mindset shift that stops self-sabotage, and realistic withdrawal habits so trading actually pays you. By the end, you’ll know the exact steps to practice, pass, get funded, and grow—slowly, safely, and with a strategy built for longevity.
Jerremy Newsome Playbook & Strategy: How He Actually Trades
Core Framework: Markets, Timeframes, and Instruments
Here’s the big picture of how Jerremy approaches the job. He focuses on liquid U.S. equities and options, uses a clean higher-timeframe context, and executes with simple intraday/short-swing rules. The goal is consistent R-multiples and weekly withdrawals—not hero trades.
- Trade universe: U.S. stocks and options with average daily volume > 2M and price > $10
- Core timeframes: Daily for bias, 15-minute for structure, 5-minute for execution
- Bias rule: Only take longs above the 20-EMA on the daily and shorts below it
- Max simultaneous positions: 3; avoid correlated names (same sector) in the same direction
- News filter: If a ticker has earnings within 48 hours, only day-trade it—no overnight
- Weekly paycheck habit: Withdraw a portion of profits each Friday to reinforce process > PnL
Setup Selection: Gaps, Trends, and Key Levels
This section covers Jerremy’s bread-and-butter setups—clean gaps, trend continuation, and level breaks. You’ll narrow the noise to two repeatable patterns and a simple way to build a daily watchlist.
- Watchlist builds from premarket: liquidity + gap > 1.5% + fresh catalyst (ER, upgrade/downgrade)
- Two primary setups:
- Gap-and-Go: Open above/below prior day’s range with strength through premarket high/low
- Trend-Retest: Pullback to 9/20-EMA or prior breakout level within a clear daily trend
- Key levels: Prior day high/low, premarket high/low, weekly open, and round numbers ($25, $50, $100)
- Confirmation: First 15 minutes must hold the bias level (e.g., above premarket high for longs)
- Avoid chop: If the first hour’s true range < 0.75× 20-day ATR percentile, skip the ticker
Entry Triggers: When to Click the Button
Now we turn the setups into triggers. Jerremy keeps entries mechanical to reduce hesitation: a break-and-retest pattern plus one momentum cue. No guessing, no “feel.”
- Break-retest-go: Enter on the first clean retest of premarket high/low with a 5-minute higher low (for longs) or lower high (for shorts)
- Momentum add-on: 5-minute candle must close in your direction with above-median volume
- Alternative trigger: VWAP reclaim (long) or VWAP rejection (short) after the first 30 minutes
- No entry in the first 3 minutes unless it’s a planned gap-and-go with a stop already staged
- If price travels > 1R without you after trigger, skip the trade—do not chase
Risk & Position Sizing: R-Multiples First, Dollars Second
This is about how Jerremy sizes so he can survive long enough to thrive. You’ll set fixed risk per trade and hard loss limits that stop tilt before it starts.
- Fixed risk per trade: 0.5R–1R = 0.25%–0.5% of account; funded accounts cap at 0.25%
- Daily max loss: −2R; hit it and you’re done for the day
- Weekly max loss: −6R; if reached by Wednesday, reduce size by 50% for the rest of the week
- Initial stop: Always beyond the invalidation point (below retest low for longs / above retest high for shorts)
- Slippage buffer: Add 0.05–0.15 ATR(14, 5-min) to stops on fast movers
- Position size = (Account × Risk%) ÷ (Entry − Invalidation distance + buffer)
Trade Management: Scaling, Stops, and Staying Paid
Here you’ll learn how Jerremy lets winners breathe while getting paid early. The rules are simple: scale out into strength, protect the core, and trail with structure—not hope.
- First scale: Take 30% off at +1R; move stop to break-even on the remainder
- Second scale: Take 30% off at +2R; trail remainder using the 9-EMA (5-minute) or prior candle low/high
- If price closes against your trail twice in a row, exit the rest—no debate
- Time stops: If trade hasn’t reached +0.5R within 30 minutes, cut it to free mental capital
- News spike protection: If a surprise headline prints and spreads widely, reduce it to half size immediately
- End-of-day rule for day trades: Flatten before the close unless you have a planned swing with daily confirmation
Time-of-Day Playbook: When the Edge Is Highest
Not all minutes are created equal. Jerremy concentrates risk when the market tends to trend and avoids the chop windows that chew up P&L.
- Primary windows: 9:35–10:45 ET and 13:30–15:30 ET
- First three minutes: Observe only unless it’s a pre-planned gap-and-go with pre-staged stop
- Midday rule: If ATR-per-hour drops below morning pace, cut size in half or pause
- Power-hour add-on: Re-entries allowed only if the daily bias is still intact and VWAP is aligned
Options Overlay: Simple, Directional, and Liquid
When Jerremy uses options, he keeps it straightforward: liquid weeklies, tight spreads, and stock-like behavior. The aim is clean execution, not complexity.
- Use calls/puts that are 0.30–0.45 delta, next weekly expiry, bid-ask spread ≤ $0.10 or ≤ 5% of premium
- Risk with premium paid; never average down options premium
- No multi-leg structures during earnings week; stick to singles or trade common shares
- Exit options at +1R/+2R targets or if underlying breaks your stock-based trail rules
- If IV rank > 50 and the trend is unclear, skip options and trade the stock to avoid IV crush games
Funded & OPM Safety: Rules Before Dollars
If you’re trading prop capital or any kind of OPM, Jerremy makes the rules even tighter. Protect the account first, build a sample size, then scale.
- Two-week probation: Trade 0.25% risk until you log 20 trades with a win rate ≥ 45% and an expectancy ≥ +0.2R
- Hard stops only; platform server-side if available
- Daily withdrawal habit: Pay yourself every profitable Friday; never “let it ride” over weekends
- No friends-and-family money—ever; if you must, use a formal structure with hard daily/weekly loss caps
- Break the firm’s daily limit? Log out immediately and do a post-mortem before the next session
Psychology & Process: Keeping the Edge When It’s Hard
The mindset piece is about doing what works even when you don’t feel like it. Jerremy’s approach turns discipline into a checklist so emotions don’t run the show.
- Pre-market routine: 10 minutes of replay/markups + state check (sleep, stress, expectations)
- “Two-strike” rule: Two execution mistakes (not losses) = you’re done for the day
- Language audit: Replace “I think” with “If/then” statements on your plan and journal
- Loss reframe: Every 1R must produce a screenshot and one process improvement before the next trade.
- Environmental control: HideP&LL during the session; focus on R and process metrics
Journaling & Metrics: What to Track and Why
Data makes the playbook real. Track the metrics that tie directly to your edge so you can scale with evidence, not vibes.
- Log for every trade: Setup type, trigger condition, entry/stop/targets, R result, time-in-trade, screenshots.
- Weekly review: Top three winners and losers—distill what was repeatable vs. lucky
- KPI targets: Win rate ≥ 45%, avg winner ≥ 1.7R, loss capped at −1.1R, profit factor ≥ 1.4
- Edge filter: If a setup falls below break-even expectancy over 30 trades, sideline it for two weeks
- Scale rule: Increase risk by 10–20% only after 40 trades with positive expectancy and no rule breaks
Playbook Checklist: Your If/Then Cards
Turn all of the above into quick “if/then” cards you can read before the open. This is how Jerremy keeps execution crisp and repeatable.
- If daily is above 20-EMA and we gap up > 1.5%, then bias = long and I trade the first clean break-retest of premarket high.
- If the first 15 minutes close below VWAP against my bias, stand down until VWAP is reclaimed.
- If trade hits +1R, then take 30% and move stop to break-even; if +2R, take another 30% and trail with 9-EMA
- If I hit −2R on the day or make two execution mistakes, I’m done, and I journal before leaving the desk.
- If the setup doesn’t move +0.5R in 30 minutes, I reduce or exit and free up focus for the next A-setup
Size Every Trade by R, Not Dollars, to Survive Drawdowns
Jerremy Newsome hammers one habit above all: fix your risk per trade in R and keep it there. When you size by R, every position is calibrated to the distance to your stop, not to how rich or scared you feel that day. This keeps small losses small and stops a red streak from ballooning just because you “liked” a setup. It also makes your stats clean—win rate, average winner, and profit factor actually mean something when each loss is capped at the same R.
In practice, Jerremy treats R like a seatbelt—clicked in before the engine starts. He decides the invalidation level first, calculates the size from that, and only then enters. If the plan breaks, he’s out at −1R, not negotiating with hope or widening stops. And he only scales R higher after a verified sample of trades shows the edge is real, turning growth into a math decision, not a mood swing.
Let Volatility Dictate Position Size, Not Ego or Hopes
Jerremy Newsome keeps size tethered to volatility, so a “normal” wiggle doesn’t knock him out or overexpose him. He measures recent range, sets the stop beyond that noise, and then shrinks or expands position size so a full stop equals the same R every time. When range expands, size contracts; when range contracts, size grows—simple math that protects the account from regime shifts. This kills the bad habit of adding size just because a setup feels great.
In real terms, Jerremy looks at ATR or the day’s opening range and prices the risk first, not the target. If ATR jumps after a catalyst, it halves in size until the chart calms down. If the trade moves faster than expected, he resists the urge to pyramid blindly—no adds unless new risk can be defined. By letting volatility steer size, he keeps outcomes consistent and emotions quiet, turning chaotic days into controlled R-based decisions.
Diversify by Setup, Duration, and Ticker—Cut Correlation Fast
Jerremy Newsome doesn’t spray and pray; he diversifies with intention so one market mood can’t sink the day. He spreads risk across different setups—say, a gap-and-go, a trend retest, and a reversal—so the same mistake can’t repeat three times in a row. He also mixes holding periods, pairing quick intraday trades with measured swings to smooth equity curve bumps. If two tickers move like twins, he picks the cleaner one and drops the other before it bites.
Jerremy Newsome treats correlation like hidden leverage, because it is. When a sector heats up, he’ll cap exposure to one name or split size among uncorrelated themes rather than doubling down on the same narrative. If a position starts mirroring another he holds, he reduces or exits to restore independence between bets. By diversifying across setup type, time horizon, and ticker, he protects R-multiples from clustering losses and keeps compounding steady.
Trade the Rules, Not Predictions: Clean Triggers, Hard Invalidations
Jerremy Newsome trades what the chart proves, not what he hopes. His focus is simple: define the trigger, define the stop, and let price decide. A clean break-and-retest, a VWAP reclaim, or a higher low against a prior level are valid entries; opinions about “where it should go” are not. If the trigger doesn’t fire, he doesn’t enter—no front-running, no guessing, no FOMO.
Once in, Jerremy Newsome anchors the trade to a hard invalidation that lives on the chart, not in his head. If price violates that line, he’s out—no averaging down, no bargaining for “one more candle.” He trails only when the market earns it with structure, and he scales out into strength at pre-set R targets. By reducing decisions to if/then rules, he keeps emotions from rewriting the plan mid-trade and turns uncertainty into a series of controlled, repeatable actions.
Prefer Defined Risk in Uncertain Environments; Scale Only With Evidence
When volatility gets jumpy or news risk is lurking, Jerremy Newsome leans into defined-risk structures and tight, chart-based invalidations. He treats uncertainty as a reason to simplify, not to swing bigger, using clear stops and position sizes that cap downside at a fixed R. If spreads widen or headlines hit, he prioritizes survival over ideas and reduces exposure without hesitation. Defined risk keeps the worst day small enough to come back from tomorrow.
Scaling is never a vibe call for Jerremy Newsome—it’s earned by data. He increases in size only after a meaningful sample shows positive expectancy and clean execution, not after one hot streak. Each bump in size is incremental, with the same rules and the same R math applied. If performance slips or rules get broken, he dials back immediately and rebuilds the sample, proving the edge again before stepping up.
Jerremy Newsome’s core message lands hard and clear: protect relationships, protect capital, and make trading boringly professional. He draws a bright line between structured capital and emotional capital—use formal programs and contracts, not friends’ or family money. Start by mastering your tools: practice in a simulator, learn order types cold (limit, stop limit, MOC/LOC), and only step up when you can execute without guessing. For OPM and prop setups, keep it simple—equities are clean, options are already leveraged, and defined stops keep the downside known. Pair that with fixed-R risk, daily and weekly loss caps, and the habit of taking steady withdrawals so trading actually pays you.
From there, Jerremy Newsome makes consistency the edge. Build a small set of repeatable setups, size by volatility, and avoid correlation that can turn one bad theme into three losses. Let price action trigger you—break, retest, go—and let invalidation kick you out without debate. If uncertainty spikes, reduce the size or step aside; if performance slips, cut risk and rebuild the sample before scaling again. The punchline is simple but rare: treat trading like a professional service with rules, audits, and accountability. Do that, and OPM becomes a growth tool—not a grenade.
