Table of Contents
On the Words of Rizdom podcast, the host sits down with Paladin and Omar for a candid talk about trading, social media, and building something that actually helps traders. These two aren’t faceless marketers—they’ve posted real payouts, learned publicly from losses, and are now channeling that experience into Smart Funded Trader with transparent rules and trader-first conditions. If you’re new, this is a rare look at how credible traders think about craft, brand, and responsibility.
You’ll learn why Paladin and Omar say “master the craft first, content later,” how posting verified payouts and honest fails builds trust faster than flexing, and simple filters for avoiding noise (like muting comments and focusing on the positive). They also break down practical prop-firm edges—no time limits, realistic targets, sensible drawdowns—and why multiple income streams matter once trading becomes consistent. By the end, you’ll have a beginner-friendly checklist for growing skill, brand, and account the right way.
Paladin Playbook & Strategy: How He Actually Trades
Core Market Framework
This section spells out how Paladin reads the market before touching the keyboard. It focuses on timeframe alignment, trend bias, and the levels he respects, so you’re never “guessing” direction.
- Top-down: Weekly → Daily → H4 to set directional bias; execute on M15/M5.
- Bias rule: Trade only in the direction of the Daily candle while it remains above/below its prior day’s value area (previous day’s high/low and VWAP bands).
- Location first: Mark weekly and daily swing highs/lows, session VWAP (cash open), and prior day close; no trade if price sits between major levels with <0.5x ATR(14) expansion left.
- Volatility gate: If the current day range ≥ 0.8× Daily ATR(14) by NY lunch, new entries must be A+ or skipped.
- News filter: No new positions inside 5 minutes pre-high-impact or 10 minutes post unless already risk-free.
A-Setup Checklist (Must Pass All)
Here’s the simple, repeatable pre-trade checklist Paladin runs before committing risk. If any box fails, he stands down—no exceptions.
- Bias aligns across Daily and H1; the lower timeframe signal agrees.
- Price is at a pre-planned level: prior day high/low, session open, VWAP/AVWAP, or H1 fair-value gap.
- Momentum confirmation: M15 structure shift + M5 impulse close; RSI(14) crosses its midline in bias direction.
- Liquidity cue: Stop-run or equal-high/low sweep into level, then rejection (wick + close back inside).
- Risk: Reward ≥ 2R to first target using most recent swing for stop placement.
Risk & Sizing Rules
This section keeps you alive long enough to let the edge play out. It defines how much to risk, where to place stops, and when to cut size.
- Fixed fractional risk: 0.25% per A- setup; 0.10% for B- setups; 0% for “looks good.”
- Max daily drawdown: 0.75% on funded; hit it and you’re done for the day—platform closed.
- Initial stop: Beyond invalidation structure (last swing + buffer = 0.15× Daily ATR); never arbitrary pips.
- Size formula: Position = (Account × Risk%) / (Stop distance in ticks × tick value).
- Scale-in only at planned adds after partials taken; never widen stops to “make room.”
Entry & Exit Mechanics
These are the nuts-and-bolts rules for getting in, taking profits, and getting out—without second-guessing in the heat of the moment.
- Trigger: Limit/stop order only at pre-marked level; no market “chase” entries.
- First target (T1): Opposing intraday liquidity (e.g., prior swing or session VWAP). Take 50% off at +1.5R to +2R.
- Stop to breakeven: Move to BE after T1 prints or when M5 closes beyond the next structure in your favor.
- Trail logic: For trend days, trail under/over M15 higher-low/lower-high; for range days, hard target at edges—no trailing.
- Hard exit: If M15 closes beyond your invalidation level or news volatility invalidates the structure, flatten immediately.
Daily Routine (Pre, During, Post)
Consistency beats intensity. This routine frames the day so every trade comes from a plan, not impulse.
- Pre-market (20–30 min): Mark levels, define A/B setups, write “if-then” scenarios, and set alerts—no charts during breakfast scrolling.
- During session: Execute only on alerts; 2-trade hard cap before lunch unless both were A+ wins (then 1 additional max).
- Post-market (10–15 min): Screenshot entry/exit, annotate context, tag outcome (setup passed/failed), and record emotions in one sentence.
Journal Tags & Metrics
Paladin tracks a few simple metrics that actually move the needle. Use these tags to spot which rules are paying the bills.
- Tags: Setup(A/B), Bias(With/Against), Location(VWAP/PDH/PDL/AVWAP), Volatility(>/< 0.8×ATR), News(Yes/No).
- Metrics to track weekly: Win rate by setup tier, Avg R per setup, Session of day PnL (London/NY), Slippage vs plan.
- Kill/scale rules: If Avg R of a setup < +0.3 over 20 samples, kill it; if > +1.2 over 30 samples, scale size by 20%.
Prop Evaluation & Funded Account Rules
Evaluating survival is its own skill. These rules cut the risk of breaches while still letting the edge play out.
- Target pacing: Divide the objective by 15 trading days; daily goal = objective/15. Stop trading once the daily goal is hit.
- Drawdown buffer: Keep equity ≥ 1.5× the daily drawdown limit; if equity approaches 1.2×, cut risk in half.
- News discipline: If the firm forbids red-folder trading, flatten 5 minutes before; if allowed, trade only if already risk-free.
- Consistency cap: No single day > 30% of total evaluation profit; if exceeded, stand down the next day.
Playbook Setups (H3)
This is where ideas become templates. Two bread-and-butter plays with exact criteria so you can replicate them.
H3: VWAP Reversion after Stop-Run
This play catches the snap-back after a liquidity grab around the session open.
- Context: Range-bound conditions; price sweeps prior day high/low in first 60–90 minutes.
- Entry: After the sweep, wait for M5 to close back inside value; enter on a minor pullback toward the wick.
- Stop: Beyond sweep high/low + 0.1× Daily ATR buffer.
- Targets: T1 = session VWAP; T2 = opposite value edge or mid-range; trail under/over M15 swing if momentum persists.
H3: AVWAP Trend Pullback (From Session Open)
For trend days, this catches the first clean pullback to anchored VWAP from the cash open.
- Context: Clear Daily bias + strong impulse away from open; breadth/structure confirms.
- Entry: Limit at AVWAP touch with M5 bullish/bearish rejection wick in trend direction.
- Stop: Below/above pullback swing + AVWAP breach buffer.
- Targets: T1 = prior impulse high/low; T2 = 1.0× intraday ATR projection; trail with M15 swings.
Trade Management Scenarios
Things won’t always go to plan. These if-then rules reduce hesitation and protect your equity when market conditions shift.
- If spread widens or slippage spikes beyond plan → cancel pending orders until it normalizes for two consecutive M5 closes.
- If price stalls within 0.3R of T1 for two M5 candles → take 25% off proactively and keep original T1 for the remaining.
- If bias flips (Daily candle engulfs against you) → no new trades against the new bias for the rest of the session.
- If two consecutive losses on the same setup → stop trading that setup today; review tags post-market.
Omar Playbook & Strategy: How He Actually Trades
Core Market Thesis & Bias
This section explains how Omar frames the day before he even thinks about entries. The goal is to define a clear directional bias and the key levels that will actually drive decision-making, so you aren’t improvising mid-session.
- Top-down sweep: Weekly/Daily for trend, H1 for structure, M15/M5 for execution.
- Bias rule: Only trade in the direction of the Daily candle while price remains above/below the prior day’s value area (PDH/PDL and prior day VWAP).
- Key levels on the chart before open: PDH/PDL, session open, cash-session VWAP, anchored VWAP from major highs/lows, and H1 swing points.
- Volatility gate: If realized range hits ≥0.9× Daily ATR by New York lunch, downgrade all new setups to “B-only.”
- News guardrails: No fresh risk 5 minutes before red-folder events and 10 minutes after; existing positions must be at breakeven to remain open.
Trade Selection Filters (A vs. B Setups)
Here’s how Omar separates “take it now” trades from “maybe later” ideas. These filters keep you focused on the 1–2 best looks instead of watering down your edge.
- A-Setup must-have: Daily/H1 bias aligned, at pre-planned level, and a liquidity event (stop-run/sweep) just occurred.
- Momentum confirmation: M15 structure shift + M5 impulse close in bias direction within the last three candles.
- R-math first: Minimum 2R to T1 using invalidation swing + 0.1× Daily ATR buffer for the stop.
- B-Setup allowance: Bias aligned but missing either the sweep or the impulse close; risk capped at 40% of A-Setup size.
- Hard pass: If price sits mid-range between PDH/PDL and VWAP with <0.5× ATR left to expand, no trade.
Risk, Sizing, and Drawdown Control
This section gives the exact numbers Omar uses to stay funded and scalable. The idea is to define risk up front so execution is calm and consistent.
- Base risk: 0.30% per A-Setup, 0.12% per B-Setup; never stack more than two concurrent positions.
- Daily stop: −0.90% realized or three consecutive losers—terminal for the day.
- Stop placement: Beyond invalidation swing plus 0.1× Daily ATR; never widen a stop after entry.
- Size formula: Position = (Account × Risk%) ÷ (Stop distance in ticks × tick value).
- Add-ons are allowed only after T1 hits and stop is at breakeven; adds are half-size and must occur at fresh signals.
Entry & Exit Mechanics
These are the nuts-and-bolts rules Omar uses to systematize entries, partials, and exits. They reduce hesitation and prevent “hope mode.”
- Entry trigger: Limit/stop orders at pre-marked levels; no market chasing if candle closes beyond price.
- First take-profit (T1): Opposing intraday liquidity—prior swing or session VWAP; scale 50% at +1.5R to +2R.
- Breakeven rule: Move stop to entry after T1 or after an M5 close beyond the next structure in your favor (whichever comes first).
- Trailing logic: Trend day → trail under/over M15 swing lows/highs; Range day → fixed targets at range edges, no trailing.
- Hard exit: If M15 closes beyond invalidation or if high-impact news dislocates spreads, flatten immediately.
Daily Routine & Play Execution
Omar treats routine like a performance warm-up. These steps keep the day predictable and prevent emotional trades.
- Pre-market (20–30 min): Mark levels, write two “if-then” scenarios per instrument, set price alerts, and pre-calc position sizes.
- Session rules: Max two trades before lunch; a third only if both prior trades were A-Setups and at least one banked ≥1.5R.
- After entry: Hands off until alert or T1; no tinkering with stops unless your invalidation is structurally broken.
- Post-market (10–15 min): Screenshot, annotate context and emotions in one sentence, tag setup quality (A/B), and log R-multiple outcome.
Journaling Tags & Performance Metrics
This is how Omar measures what’s actually working. You’ll use these tags to spot patterns and scale the right edges.
- Tags: Setup(A/B), Bias(With/Against), Location(VWAP/PDH/PDL/AVWAP), Liquidity(Sweep/No), Volatility(>/<0.8×ATR), News(Yes/No).
- Weekly metrics: Win rate by setup type, Avg R per setup, Session PnL split (London vs. New York), Planned vs. Actual stop distance.
- Governance: If a setup’s 20-trade rolling Avg R < +0.3, bench it; if 30-trade rolling Avg R > +1.0 with drawdown < −2R, scale risk by +20%.
Prop Evaluation & Funded-Account Constraints
Passing and keeping accounts mean pacing profits and respecting limits. These rules balance aggression with survival.
- Objective pacing: Divide the target by 15 trading days; stop when the daily slice is met to avoid overtrading.
- Consistency cap: No single day may exceed 30% of evaluation profit; if it does, trade half-risk next day.
- Drawdown buffer: Maintain equity ≥1.5× daily DD limit; if it drops near 1.2×, cut risk by 50% until back above buffer.
- News compliance: If the firm bans red news trading, be flat 5 minutes prior; if allowed, hold only risk-free positions through it.
Playbook Setups (H3)
These are Omar’s two bread-and-butter plays. Each one includes context, the exact trigger, stops, and targets so you can replicate them without guesswork.
H3: London Sweep to New York Continuation
This play uses the early stop-run in London to load the move that extends in New York. It’s great for days when the higher-timeframe bias is clear but the open is noisy.
- Context: Daily/H1 bias aligned; London session sweeps PDH/PDL and snaps back inside value.
- Trigger: M15 structure shift + M5 impulse close in bias direction; enter on a small pullback to the impulse body/wick.
- Stop: Beyond sweep high/low + 0.1× Daily ATR buffer.
- Targets: T1 = session VWAP or prior intraday swing; T2 = measured move equal to the first impulse leg; trail with M15 swings on trend days.
H3: AVWAP Pullback from Cash Open
This is the go-to for strong trend days where the open creates a clean anchor. It keeps you out of mid-range chop and into the engine of the move.
- Context: Strong impulse off cash open with breadth/structure confirming trend; AVWAP from open is respected.
- Trigger: First clean pullback to AVWAP with an M5 rejection wick closing in trend direction; place a limit at AVWAP ± a small buffer.
- Stop: Below/above pullback swing plus AVWAP breach by one tick increment.
- Targets: T1 = prior impulse extreme; T2 = 1.0× intraday ATR projection; if momentum fades at VWAP bands, bank and stand down.
If–Then Management Rules
When markets shift, Omar leans on if–then statements to remove emotion. Use these to standardize reactions to common scenarios.
- If spread widens or slippage exceeds plan → cancel pending orders and wait for two consecutive M5 candles with normal spreads.
- If price stalls within 0.3R of T1 for two M5 closes → take 25% off, leave the rest for original T1 and T2.
- If two consecutive losses on the same setup occur → stop trading that setup for the day; review tags after close.
- If Daily candle flips against your bias (true engulf) → no new positions against the new bias for the rest of the session.
Size Risk First: Position With Volatility, Not Your Ego
Omar says the trade isn’t the decision—the risk is, and Paladin backs it up by sizing every position to volatility before thinking about payoff. They treat ATR and expected range like seatbelts, adjusting size so a normal move doesn’t knock them out, and an abnormal move can’t end the day. When the tape is quiet, size can nudge up; when it’s wild, they scale down or pass entirely. Both traders stress that conviction doesn’t change the math—only volatility and distance to invalidation do.
Practically, Omar starts with a fixed percent risk, then divides by stop distance measured in real, current volatility rather than arbitrary pips. Paladin adds a “condition factor,” cutting size when spreads widen or news is near, so slippage can’t snowball a small loss into a big one. They each predefine a daily drawdown stop, which turns a bad morning into a controlled red day instead of a spiral. The result is consistency: the same trade rules produce similar outcomes across calm and stormy markets because risk, not ego, sets the size.
Diversify By Underlying, Strategy, And Timeframe To Smooth Equity Curves
Omar explains that diversification isn’t owning “more stuff,” it’s owning different return streams—ES momentum isn’t the same as GBPUSD mean-reversion or a volatility breakout in crude. Paladin adds that he maps correlation first, then allocates risk so no single theme—dollar strength, tech beta, or energy—can hijack the day. They each cap exposure per underlying and per idea type, so a trend trade in NAS100 doesn’t get doubled accidentally by a parallel setup in SPX.
In practice, Omar runs a three-bucket mix: trend continuation, VWAP/AVWAP reversion, and catalyst/volatility expansion, with small, pre-set risk slices for each. Paladin staggers duration—scalps on M5, intraday swings on M15/H1, and occasional holds into the close—so PnL isn’t tied to one session’s mood. Both review rolling 20-day correlations and tighten risk when strategies start moving together, then widen when they decouple. They avoid stacking proxies (e.g., EURUSD and DXY at once) and won’t carry more than one trade per theme unless the second has a truly independent trigger. The outcome is a smoother equity curve: when one lane chops, another can carry the day.
Trade Mechanics Over Predictions: Rules, Triggers, And Invalidation Drive Decisions
Omar says the edge lives in repeatable mechanics, not in guessing where price “should” go, and Paladin echoes it with his if–then checklist for entries and exits. They both anchor trades to pre-planned triggers—structure shift on M15, impulse close on M5, or a VWAP/AVWAP touch—so there’s zero hesitation when the market prints their signal. Invalidation is defined up front at the last meaningful swing plus a small volatility buffer; if that level breaks, the idea is wrong, no debate. Because prediction is optional and risk is mandatory, they refuse to widen stops or “give it a little room”—the plan beats hope every time.
Paladin treats targets the same way: T1 at opposing liquidity or session VWAP, then scale and trail only if the trend day criteria are met. Omar automates as much as possible—alerts at levels, bracket orders ready—so execution is fast and emotions stay out of it. When spreads blow out or news distorts price, both traders revert to rule-based pauses rather than gut feel. The result is consistency: mechanics handle the messy middle, while Omar and Paladin simply show up and follow the script.
Prefer Defined Risk Setups; Cap Tails On Undefined Risk Exposures
Omar says the easiest way to sleep at night is to know, in dollars, the most you can lose before you click buy. He favors defined-risk structures—tight invalidation with hard stops, bracket orders, and, when applicable, options spreads with capped downside—because tail events turn “probably fine” into “why did I do that” faster than traders expect. Paladin adds that undefined risk isn’t evil, it’s just expensive, so you must price the tail: smaller size, faster partials, and a hard exit if volatility breaches your threshold. Both traders agree that if you can’t state the max adverse excursion and where the trade is wrong, you’re not trading—you’re hoping.
Paladin’s rule is simple: for spot and futures, the stop lives beyond structural invalidation plus a small volatility buffer; never widen it after entry. Omar treats undefined risk like a hot stove: use it sparingly, hedge when spreads blow out, and stand down into binary catalysts unless you’re already risk-free. They each enforce a per-trade loss cap and a daily drawdown stop, so one freak candle can’t nuke the account. Result: defined risk gets normal size and room to work; undefined risk, when taken at all, wears a leash.
Build A Process: Pre-Plan Scenarios, Execute Checklists, Review Relentlessly
Omar keeps it simple: write two or three if–then scenarios before the open, then let price choose the path. Paladin echoes that the checklist is your boss—bias, level, trigger, risk, target—and if a box isn’t ticked, the trade doesn’t exist. They both set alerts at levels so execution is reactive, not impulsive, and pre-calc size so there’s zero math under pressure. When conditions change—spreads widen, news hits, volatility spikes—the fallback is a rule, not a feeling.
After the close, Omar snapshots the chart, tags the setup, and logs R multiple; Paladin adds one sentence on psychology to catch hidden tilt. They compare what was planned versus what actually happened and kill or scale setups based on rolling average R, not vibes. Missed trades get logged too, because consistency is built by fixing the gaps you can control. The process isn’t fancy, they say—it’s the repetition that compounds into edge.
In the end, Omar and Paladin make one message crystal clear: edge is built on discipline, not hot takes. Size to volatility, define invalidation before entry, and hard-cap the day with pre-set drawdown stops. They treat ATR, VWAP/AVWAP, PDH/PDL, and M15/M5 structure as the ground truth—mechanics first, predictions optional. When spreads widen or news hits, risk comes off, or positions must already be risk-free. That’s how they sidestep the sneak attacks that wipe out a week of progress in one candle.
Just as importantly, they diversify the ways they make money—by underlying, by strategy (trend continuation, VWAP reversion, volatility expansion), and by duration—so no single market mood owns their P&L. Omar and Paladin run checklists, log R-multiples, tag setups, and bench anything with a weak rolling average R; then they scale what proves itself. The playbook is simple but strict: plan two or three if–then scenarios, let price confirm, take profits at opposing liquidity, trail only on trend days, and review relentlessly. Do this, and—like Omar and Paladin—you stop chasing trades and start operating a repeatable, risk-first business.
