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In this interview, Jake Trades (real name Jake Richie) breaks down how he climbed from a painful early drawdown to consistent futures payouts by stripping the noise and trading pure price action. He’s the guy who treats markets like “a game of runs,” grades every session A/B/C to avoid tilt, and leans on platform-level risk controls so bad days don’t become blowups. If you’re new or rebuilding, Jake’s story matters because it shows exactly how a retail trader can reset, focus on higher lows/lower highs, and start stacking clean, rule-based wins without overcomplication.
Here’s what you’ll learn in this piece: Jake’s four-part A+ setup (have a reference level, trade with the trend, use a candle-based trigger with a defined stop, and make sure the timeframes are aligned), his A/B/C day framework that rewards plan-following over P&L, and the “dynamic R” mindset for holding winners without handing back gains. We’ll also cover the practical stuff he wishes he’d done sooner—switching brokers to break bad loops, seeking real mentorship, and using rules that lock in discipline—so you can copy the parts that fit your playbook and skip the years of trial and error.
Jake Trades Playbook & Strategy: How He Actually Trades
Core Edge: Read the tape, trade the story
Price action is the source of truth in Jake Trades’ approach. He builds a simple narrative around levels, trend, and who’s in control, then waits for the price to confirm before committing risk.
- Define the session’s reference level (prior day high/low, session open, VWAP, or clear swing S/R).
- Label trend on the higher timeframe (up, down, balance). Only take longs in uptrends and shorts in downtrends; in balance, trade the edges back to the mean.
- Write a one-liner: “If price holds above <level> and buyers defend pullbacks, I’m long toward <target>.” If the one-liner isn’t obvious, skip the trade.
The A+ setup: Reference + trend + trigger + alignment
His “A+” trade checks four boxes: you have the level, you have trend, you get a clean trigger, and your timeframes tell the same story. Anything less gets passed.
- Reference: Price retests your marked level and respects it (wick rejection or close back through).
- Trend: The immediate trend on execution timeframe matches the higher timeframe bias.
- Trigger: Enter on a candle-based signal (break and close, engulfing, or rejection bar) with the stop beyond the invalidation (past the level/structure, not an arbitrary pip count).
- Alignment: At least two timeframes agree (e.g., HTF direction, LTF trigger). No alignment = no trade.
Risk first: Fixed-R sizing and non-negotiable stops
Jake sizes to a fixed R so he can judge performance by process, not dollars. Stops are placed where the idea is wrong, then left alone.
- Risk 0.25R–1R per trade (pick one and keep it constant until you hit a multi-week target).
- Hard stop goes beyond the structure that defines the idea (beneath swing low for longs / above swing high for shorts).
- If price immediately violates the trigger bar’s extreme, scratch at −0.3R to −0.5R; otherwise, let the full stop do its job.
Dynamic R: Let runners pay for the week
Small losses and full winners compound only if you actually hold the good ones. Jake scales rules, not emotions.
- First scale or lock at +1R only if structure stalls; otherwise move stop to break-even at +1R and hold for the HTF target.
- Trail behind swing structure or last confirmed HL/LH; never trail by a fixed pip.
- If momentum expands after +2R, partial at +2R–+3R, then let a runner target the next HTF level.
A/B/C day framework: Grade execution, not P&L
He grades each session to prevent tilt. The goal is stacking A and B days; C days reveal process leaks to fix tomorrow.
- A day: Took only plan-aligned trades, respected stops, and managed per rules (P&L irrelevant).
- B day: One deviation (late add, early exit, FOMO entry), documented with a fix.
- C day: Two+ deviations—immediate shut-down and written post-mortem before the next session.
Pre-trade checklist: Green lights only
A short, strict checklist kills impulsive clicks. If any box is red, the trade is passed without debate.
- Bias matches HTF and session context ✔️
- Clean level identified with measured stop location ✔️
- Trigger candle present; no news risk in next 10–15 minutes ✔️
- RR ≥ 2:1 to first target; liquidity isn’t thin ✔️
- Position size conforms to fixed-R; order type chosen ✔️
Timeframes & sessions: Map on HTF, execute on LTF
He maps the day on a higher chart and executes on a faster one to get precise entries without losing the big picture.
- Map on HTF (e.g., H1/H4 for FX or 30m/60m for indices) to set bias and levels.
- Execute on LTF (e.g., 1–5m for scalps, 5–15m for intraday swings) only in the direction the HTF has already defined.
- If HTF is range-bound, fade the edges; if trending, only take pullbacks in trend.
Two bread-and-butter plays: Retest and failed break
Keep the playbook tight. Master a retest continuation and a failed break reversal; both use the same risk logic.
- Retest Continuation (trend): Break through level → retest → trigger in trend direction; stop beyond retest low/high; target next HTF level.
- Failed Break (reversal at boundary): Price pokes above/below range, instantly reclaims; enter on reclaim close; stop beyond the extreme; target the opposite range edge or mean.
Trade management in motion: Rules for before/after entry
Management is scripted so you don’t negotiate with yourself mid-trade.
- If spread widens or volatility spikes against you, halve size or sit out until spreads normalize.
- No add-ons unless initial risk is covered (stop at break-even and structure confirms).
- No averaging down—ever. New info? New trade plan, not a rescue.
Weekly structure: Runs, not heroes
He treats the week like a game of runs. The aim is to catch a few quality moves, not trade every fluctuation.
- Cap at 1–3 high-quality trades per session, 10–12 per week max; stop trading after +3R day.
- After a −2R day, step down to half size for the next session; after a −4R week, reduce to simulator or micro size until you post two A days.
- Protect green weeks: if equity hits the weekly target, switch to runner-only mode or stop trading.
Journal & metrics: Measure what matters
The journal isn’t a diary; it’s a scoreboard that highlights edge durability and execution discipline.
- Track per-setup win rate, average R, max adverse excursion (MAE), max favorable excursion (MFE).
- Log time of day, session, and level type (open, prior high/low, VWAP, swing) to spot when your edge is strongest.
- Review weekly: kill or pause any setup with avg R < +0.5 or win rate < 35% after 30 samples.
Environment & guardrails: Make discipline automatic
He builds friction against bad behavior with platform and routine choices that make the right action the easy one.
- Pre-set daily loss limit = −2R and max trades = 6 on platform; platform auto-locks at either limit.
- Trade only predefined sessions (e.g., London/NY overlap for FX; first 2 hours for indices). Outside that window, the platform is closed.
- Keep a distraction-free layout: charts only, DOM/tape if you use it, and your checklist; remove P&L from the screen.
News, volatility, and “no-trade” filters
Edge is fragile around catalysts and dead markets. He uses simple filters to keep out of low-quality conditions.
- Stand aside 10 minutes before/after tier-1 releases (CPI, NFP, rate decisions) unless your plan explicitly trades them.
- Skip sessions with ATR < 60% of 20-day average or spread > typical by 50%+.
- If the level is messy (multiple whips on both sides) or HTF/LTF conflict, label No-Trade and move on.
Scaling up: Earn the right to size
Size comes after consistency. Jake increases risk only when process metrics say he’s ready.
- Requirement to scale: two consecutive green weeks, 85%+ A/B days, and avg trade ≥ +0.8R.
- When the criteria hit, increase risk by 25–33% and keep it there for a full month.
- If a drawdown hits 5R from the equity peak, cut size by half until you post five A days in ten sessions.
Size Every Trade by Volatility, Not Feelings—Fix R and Stick
Jake Trades—real name Jake Ricci—sizes every position off the market’s current volatility so his risk stays constant even when the tape speeds up or slows down. He defines a fixed R (risk unit) first, then lets ATR or recent range determine the stop distance, and the position size scales to fit that stop. That means the idea dictates size, not mood or “high conviction,” which keeps him from oversizing just because a setup looks pretty.
Ricci’s rule is simple: choose your R, measure the volatility, and calculate shares/contracts so a full stop equals exactly that R—no exceptions. He re-checks volatility each session, avoids stacking correlated positions that would secretly multiply risk, and won’t take a trade if the stop required by structure makes RR unattractive. By anchoring to volatility, his losers are uniform, his winners breathe, and his equity curve reflects edge—not emotion.
Build a Diversified Playbook: Underlying, Strategy, and Duration Working Together
Jake Ricci keeps his edge durable by diversifying in three dimensions: what he trades, how he trades it, and how long he holds it. He splits his universe into a few liquid underlyings that move differently, then matches each with a specific strategy type so no single market condition can wreck the week. That means trend plays ride expansions, mean-reversion handles chop, and breakout/fade tactics rotate in or out depending on regime. The goal is simple: one player struggles, another picks up the slack.
Ricci also varies duration on purpose—scalps around the open, intraday swings into session targets, and occasional multi-day holds when higher timeframes align. He won’t run duplicate risk, so if two plays rhyme (same driver, same level), he picks the cleaner one and sizes it properly. Every position must have its own thesis, trigger, and invalidation; overlap is trimmed before entry, not after pain. When the tape shifts, he doesn’t force a single method—he dials up the strategies that historically win in that environment and dials down the rest. That’s how the playbook works together: diversified inputs, defined methods, and durations that match the market’s rhythm.
Trade the Mechanics, Not Predictions: Rules, Triggers, and Invalidation First
Jake Ricci doesn’t guess where price “should” go—he executes rules. He defines the setup, waits for a trigger, and places the stop where the idea is objectively wrong. If the trigger doesn’t print, he passes and keeps his powder dry. Predictions are free; only mechanics protect capital.
Ricci’s checklist is tight: clear level, higher-timeframe bias, specific trigger (close through level, engulfing, or rejection), and a stop beyond structure—not a random number. Position size is computed so a full stop equals his fixed risk unit, and he refuses to move the stop unless the structure truly shifts. If the price is invalid immediately, he scratches small; if it confirms, he lets targets work and trails behind swings, not feelings. No averaging down, no revenge adds, and no “one more try” after invalidation. The market decides—his job is to follow the mechanics.
Choose Defined Risk When Possible; Control Undefined Risk with Hard Stops
Jake Ricci prefers defined risk whenever the market lets him—think debit spreads, verticals, or tight-structured positions where the max loss is capped on entry. He likes that the worst-case is known, the position size is cleaner, and psychology stays calmer because the number can’t expand. When he’s in products with undefined risk—like outright futures or spot—Ricci flips to strict hard stops at structural invalidation and refuses to widen them.
Ricci’s rule set is blunt: if he can cap risk at the start, he does; if he can’t, the stop is placed beyond the level that proves the idea wrong and never moved. He also ties undefined-risk trades to platform guardrails—daily loss limits, max trades, and auto-lock after tilt triggers—so one mistake can’t snowball. If slippage is likely (news, thin liquidity), he either converts the idea to a defined-risk structure or skips it. The principle is simple: define the downside first, then let edge and management work on the upside.
Discipline That Compounds: A/B/C Day Grading, Limits, and Shutdown Protocols
Jake Ricci treats discipline like a system, not a mood. He grades every session A/B/C to keep the focus on execution, not P&L. An A day means he followed the plan end-to-end, regardless of dollars. A B day allows one clean miss—documented with a fix before the next bell. A C day is two or more process breaks, which trigger a hard shutdown and a short written post-mortem before he’s allowed to trade again.
Ricci backs the grading with guardrails that make good behavior automatic. He sets a daily loss limit (e.g., −2R) and a max trades cap, and the platform auto-locks if either is hit. After a −2R day, he trades the next session at half size; after a +3R day, he stops to protect gains and reset. Every session starts with a pre-commit checklist and ends with a five-minute review so the rules get stronger, and the edge compounds through consistency—not heroics.
In the end, Jake Trades’ edge isn’t a magic indicator—it’s a tight operating system. He sizes every idea to a fixed R, anchors stops to structure, and lets volatility determine position size so losers are uniform and winners have room to breathe. His playbook stays deliberately small: a retest continuation in trend, a failed break at boundaries, and a handful of clear triggers that don’t require guesswork. That simplicity lets him trade the story, not his opinions, and it’s why his best days look boring on paper—rules executed, targets hit, risk contained.
What really compounds for him is discipline. He grades each session A/B/C, shuts it down when the process slips, and protects green weeks with hard limits and platform guardrails. He diversifies where it matters—underlying, strategy type, and duration—so one regime can’t wreck his month, and he scales size only after the journal proves the edge is durable. If you boil his approach to a single sentence, it’s this: define the downside with structure and rules, earn the right to hold the upside, and let consistency—not conviction—do the heavy lifting.
