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On Words of Rizdom, host Riz welcomes Pasquale Jungwirth, a seasoned trader known for his clear, no-nonsense approach to markets. This conversation digs into who he is, how he thinks, and why his process resonates with newer and experienced traders alike—simple rules, sharp execution, and a healthy respect for risk. If you’ve been hunting for a grounded voice that turns market noise into a repeatable plan, this interview is worth your attention.
You’ll learn how Pasquale frames bias, picks high-probability setups, and sizes positions so losers stay small while winners have room to run. We’ll cover his strategy building blocks—risk limits, entry/exit triggers, trade journaling, and the mindset that keeps a trader consistent under pressure—so you can adapt the same structure to your own playbook without getting overwhelmed.
Pasquale Jungwirth Playbook & Strategy: How He Actually Trades
Core Market Bias: how he frames the day
Before any chart work, he decides what kind of day it likely is—trend, mean-revert, or chop—based on overnight flows and key macro drivers. This matters because the bias dictates position size, targets, and how quickly to cut. No bias = random risk.
- By 8:30 AM ET, classify the session: trend if a major catalyst (CPI, NFP, FOMC, earnings) shifts expectations; range if no fresh data and balanced overnight; fade if a gap into prior value without continuation.
- Track DXY, US10Y, and VIX on the 30-minute to confirm risk tone; only trade risk-on instruments long when all three align (DXY ↓, US10Y stable/↓, VIX ↓).
- Define a line in the sand (LIS) from the previous session’s VWAP/POC or daily open; only take longs above LIS in trend-up days and shorts below it.
- If bias is unclear after the first 30 minutes, trade half size or stand down until the New York lunch drift resolves.
Instruments & Focus: simplify to amplify
He narrows to 1–3 instruments that cleanly express the day’s macro. Focus cuts noise and improves read on liquidity, spread, and typical rotations. Consistency beats breadth.
- Choose a primary instrument (e.g., XAUUSD, NASDAQ futures, or a single high-beta stock) and a backup that inversely correlates for confirmation.
- Skip symbols with wider than normal spreads, halt risk, or event landmines within 30 minutes.
- Only trade instruments with an average session range ≥ 1.2× their 20-day median—enough movement to pay for risk.
A+ Setup Definition: make it binary
He makes entries pass a checklist, so “maybe” trades get filtered out. The goal is to trade fewer but higher-quality swings where confluence stacks. If three conditions aren’t present, there’s no trade.
- Longs: higher-timeframe support (prior day’s value edge or 20/50 EMA cluster) + momentum confirmation (5-min HH/HL structure) + flow tell (tape acceleration or delta shift).
- Shorts: mirror logic—resistance + LL/LH + slowing tape at highs.
- Require at least 3 of 4: structure, momentum, level, flow. If only 2/4, pass.
- No trades within 2 minutes pre-/post scheduled red-folder releases.
Risk & Positioning: survive first, scale second
Risk is predefined per idea, not per feeling. Losses are capped, winners are given room, and size ramps when the read is hot. This keeps the equity curve smooth.
- Risk 0.5% per standard trade, 1.0% max on A+ with event tailwind; cap daily loss at −2% or three strikes, whichever hits first.
- Initial stop = beyond invalidation, not arbitrary pips: place past the last swing or opposite side of value (e.g., 0.5–0.8× ATR(14) on the execution timeframe).
- Use one-third position probing at the level, add two-thirds only after the first +0.5R move with structure intact.
- If the spread widens or liquidity thins unexpectedly, halve the size or skip the add.
Entry Triggers & Timing: precision over prediction
He lets price come to him, then waits for a micro confirmation so the stop is defensible. Good timing shrinks risk and multiplies R multiples.
- Prefer limit entries at level with a one-bar confirmation (engulf or strong close) on the 1–5 minute chart.
- If the first touch misses, don’t chase; wait for retest or VWAP pullback with cumulative delta agreeing.
- On news spikes, wait at least one full 1-minute candle to avoid knee-jerks before deciding.
Trade Management: mechanical beats emotional
Once in, the plan handles partials, stop movement, and exit logic. This reduces second-guessing and revenge trades.
- Take first partial at +1.0R (20–40%) and move stop to breakeven − ticks to account for spread.
- Trail remainder using structure: below/above the last swing or a 5-minute 20 EMA close against you.
- If price stalls for 15–20 minutes without making new highs/lows and delta flattens, trim another 20–30%.
- Hard exit at news time unless already locked with BE+; no fresh adds inside the last hour of the session.
Scaling & Compounding: earn your size
He sizes up only after a sequence proves the edge is currently in phase. Scaling is conditional, not automatic.
- After 3 consecutive green days or +5R net in a week, increase per-trade risk by +0.1–0.2%; reset to base after a −2% day.
- Never add size to a losing strategy variant—tag your setups and only scale the ones running win rate ≥ 50% and expectancy ≥ +0.3R over the last 30 trades.
- Weekly cap: no more than 6–8 A-quality trades per instrument; protect selectivity.
Session Structure: repeatable routine
A predictable routine keeps decisions sharp and reduces fatigue. He blocks time into prep, execution, and debrief.
- Pre-NY open (30–45 min): mark key levels (overnight high/low, prior day value, LIS, news times), set alerts, write bias in one sentence.
- Active window: first 90 minutes after cash open and power hour; avoid mid-day unless trend day persists above VWAP.
- End of day (15–20 min): screenshot winners/losers, tag setup, write one mistake and one keep-doing.
Prop Rules & Slippage: play the game right
If trading under evaluation or with tight daily drawdowns, execution and risk need tweaks. He adapts to the rules instead of fighting them.
- Aim for fewer, higher-R trades; avoid scalps that require many tickets—commission + slippage will erode stats.
- Keep intraday drawdown ≤ 50% of the account’s daily limit; stop for the day at −70% to avoid breaches.
- During volatile news windows, use limits only or skip; widen stops slightly and cut size to 0.3–0.5%.
Psychology & Discipline: make rules run you
He externalizes discipline so emotions don’t steer decisions. The goal is to make the next trade from a neutral state.
- If you break a rule (early entry, moved stop), flatten and time-out for 20 minutes—no exceptions.
- Use a pre-trade checklist (bias, level, trigger, risk) and a post-trade score (0–5) for execution quality; only increase size when the average score ≥ 4.0 over 10 trades.
- When two rule breaks occur in one day, end the session—protect confidence.
Data & Journaling: turn logs into edges
He treats the journal like a lab notebook, tagging variables so patterns show up quickly. The point is to iterate the playbook, not to write essays.
- Tag each trade by setup, market condition (trend/range), time block, instrument, R multiple, and rule breaks.
- Review every weekend: cut bottom-decile setups, double down on the top 20% by size or frequency.
- Track MAE/MFE to refine stops and partials; tighten where MAE is consistently small, loosen where MFE regularly extends.
Specialization in Volatility: when to press
He looks to press hardest when volatility is directional and liquidity is decent. That’s when the edge expands.
- When ATR(14) on the execution timeframe is ≥ 1.3× its 3-month median and your bias aligns with macro tone, allow a second add after +1R with stop trailed to BE.
- If VIX spikes > 20 and tape is whippy, reduce position count to one trade at a time and widen take-profit to 1.5–2.5R.
- Avoid pressing during quarter-end and holiday weeks—historically lower follow-through; keep risk at base.
Size Risk First: Fixed Percent, A+ Only, Never Martingale
Pasquale Jungwirth hammers one principle before anything else: decide the loss in percent before you even think about entries. He risks the same small slice each trade, so variance is manageable and the edge can play out without blow-ups. Only A+ setups get full risk; everything else is either half-size or skipped to keep the distribution clean. Martingale is off the table because adding to losers multiplies uncertainty, not expectancy.
His workflow is simple: define the invalidation level, measure the distance, and let the position size be the variable, not the stop. A base risk like 0.5% per trade goes to 1.0% only when conditions align and recent execution scores are strong. If he takes three planned losses or hits a preset daily draw limit, he stops—protecting emotional capital as much as financial capital. He never averages down, and he only scales after the trade proves itself with structure and +0.5R momentum.
Trade Volatility, Not Opinions: Allocate More When Range Expands
Pasquale Jungwirth doesn’t pay your hot take; volatility does. He watches daily range and ATR like a speedometer, upping risk only when the market is actually moving, not when he “feels” it should. If range compresses, he cuts size and expectations; if range expands with clean structure, he authorizes full risk and lets targets breathe.
He’ll tag conditions as “quiet,” “normal,” or “hot” and match allocation to the tag—never the storyline. Pasquale waits for proof: expanding ATR versus its 20-day median, rising session range, and orderly pullbacks that respect VWAP. When those align, he presses winners and widens profit targets; when they don’t, he trades smaller or not at all. Opinions are optional; volatility is the rulebook.
Diversify Smart: Mix Underlyings, Strategies, And Holding Durations
Pasquale Jungwirth spreads risk across what he trades, how he trades it, and how long he holds it. Instead of five similar tech longs, he balances uncorrelated underlyings—an index future, a metal like XAUUSD, and one high-beta stock—so a single theme can’t sink the day. He also mixes strategy styles: one trend-follow slot, one mean-revert slot, and one breakout/continuation slot, each with its own checklist and risk budget.
Duration is the third lever Pasquale pulls to smooth the equity curve. He keeps a short-hold play (minutes), a standard day trade (hours), and an occasional swing (multi-day) running from separate risk buckets, so dry spells in one bucket don’t halt progress. If correlations spike, he cuts to the best idea in each bucket, caps total exposure, and lets the system—not the mood—decide when to press or pause.
Rules Over Predictions: Mechanical Entries, Predefined Stops, Automated Exits
Pasquale Jungwirth doesn’t try to outguess the market; he out-executes it. He builds a simple entry checklist—bias, level, trigger candle, and tape confirmation—and only clicks when all boxes are green. Stops are placed at structural invalidation the moment they’re filled, never moved wider, and never “given a little room.” His exits are scripted too: partial at +1R, trail under the last swing, and a time stop if momentum dies.
Because the rules run the trade, Pasquale’s emotions don’t. If a rule is broken—early entry, late exit, or tinkering with stops—he flattens and takes a time-out before the next decision. The scoreboard is execution quality, not P&L, and that keeps him consistent through chop, trend, and news shocks alike.
Choose Defined Risk Setups; Avoid Unlimited Loss And Platform Slippage
Pasquale Jungwirth keeps risk boxed in from the start. He favors trades where max loss is known—hard stops at structure for directional trades and, when using options, defined-risk spreads over naked short premium. He never “hopes” through an invalidation; once the level breaks, the position is flattened. That certainty lets him size with confidence and prevents one freak move from nuking the account.
To dodge slippage, Pasquale uses limit or stop-limit orders at preplanned prices, avoids thin books and rollover hours, and stands down during the first seconds of major news. He won’t add size if spreads widen, and he caps order count to minimize ticket drag on prop accounts. If a fill comes with abnormal slippage, he immediately reduces exposure and recalibrates targets rather than forcing the original plan. Defined risk and disciplined execution turn random platform quirks into manageable costs, not career-ending events.
In the end, Pasquale Jungwirth’s edge isn’t a magic indicator—it’s a stack of boring, repeatable decisions executed without drama. He sizes risk first and keeps it constant, builds a macro-tinted bias around USD and gold flows, then waits for structure to confirm before committing. He trades fewer instruments, so he actually knows their rhythm, respects scheduled catalysts, and treats stops like circuit breakers—not suggestions. In prop environments, he adjusts to the rulebook, protects daily draw, and refuses to let one bad fill or a streak of slips pull him into revenge mode.
The deeper lesson is that consistency beats cleverness. Volatility—not opinion—dictates when he presses; defined risk—not hope—decides when he’s done. He diversifies across what he trades, how he trades it, and how long he holds, so one theme can’t sink the week. And he journals like a scientist: tag setups, score execution, cut the bottom decile, scale only what’s working. Put simply, Pasquale turns uncertainty into a series of small, high-probability bets—and then gets out of his own way.
