Table of Contents
This interview features Tanz from Vertex on the Words of Rizdom podcast—an experienced trader, mentor, and practicing physiotherapist who built his edge around mechanical, step-by-step rules rather than hype. He talks candidly with host Riz about starting with small accounts, ditching signal groups, learning to “wait for your rules,” and why keeping trading boring is often the point. You’ll hear how he balanced a career in physio with trading, paid homage to mentors, and evolved into an educator focused on clarity over marketing.
In this piece, you’ll quickly learn the backbone of Tanz’s strategy: define a handful of entry drills, execute only when the picture matches, and protect your psychology by keeping expectations realistic. We’ll unpack how he uses simple, mechanical rules to manage risk, why patience beats constant trading, how compounding from 5R–10R partials actually grows accounts, and what beginners should do before chasing funding or “secret patterns.” The goal: help you copy the parts that scale—rules, routines, and accountability—so you can stop hunting magic and start trading like a professional.
Tanz Playbook & Strategy: How He Actually Trades
What He Trades & When
Here’s the quick lay of the land so you can mirror the routine without guessing. Tanz keeps his focus tight, trades during the most liquid hours, and uses a clean chart to avoid decision clutter. The aim is consistency: same markets, same sessions, same checklist—every day.
- Pick 1–3 liquid markets you actually understand; keep them for at least 90 days before adding anything new.
- Anchor to two sessions only (e.g., London and New York opens); avoid off-hours trading.
- Use higher-timeframe (HTF) levels from the daily/4H, but execute on the 15m–5m (or your chosen pair).
- Keep your chart minimal: price, a session marker, yesterday’s high/low, and a 20/50 EMA or a VWAP—no more than two aids.
- Pre-mark HTF supply/demand and major swing highs/lows before the session starts.
The Setup Picture (Define It, Then Wait)
This section clarifies the exact “picture” he needs before a trade. If the picture isn’t there, he simply doesn’t trade—no forcing, no FOMO. The edge comes from repeating one image, not chasing many.
- Trade only a break-and-retest or a failed-break reversal—pick ONE as your A-setup and master it first.
- For break-and-retest longs: HTF level below, session momentum up, clean break of intraday structure, then retest that structure holding; enter on rejection candle close or limit at the retest.
- For failed-break shorts: sweep above a marked HTF/SR, impulse down back inside range, lower-high forms; enter on the lower-high confirmation.
- If two consecutive candles close against your setup right at entry, stand down—picture invalid.
- No “almost” setups: if any one of your mandatory checklist items is missing, skip the trade.
Risk & Position Sizing
You win by staying in the game long enough for your edge to express. This part nails down how much to risk, where the stop goes, and how to handle losing streaks so you never spiral.
- Risk a fixed 0.25%–0.5% per trade until you have 100 live trades logged; then reassess.
- Hard stop is always beyond the invalidation of the setup picture (not a random round number).
- Daily loss cap = 1% (or 2 losing trades max); hit it and you’re done for the day.
- Weekly loss cap = 3%; if reached, reduce risk by half for the next 10 trades.
- If you book 3 losses in a row, take a 30-minute break and review screenshots before any new entry.
Entries, Exits & Active Management
Execution should feel boring: get in where the plan says, manage with prewritten rules, and let the math work. This section gives you a simple management tree you can run every time.
- Enter only at your pre-marked level; no mid-move chasing.
- First scale-out at 1R to de-risk: close 30% and move stop to breakeven only after structure confirms (new HH/LL in your favor).
- Second take-profit at the next HTF level or session range boundary; trail behind minor swing structure if momentum accelerates.
- If price stalls for two full candles at your entry level after trigger, scratch for ≤0.2R loss.
- News within 5 minutes? Skip new entries; if already in, reduce size by half or flatten if your stop would be within the typical news wick.
HTF Context & Session Bias
Your best trades align with the broader map. Here’s how he builds a simple top-down bias so lower-timeframe signals aren’t fighting the tide.
- Start of day: mark D1/4H trend (higher highs/lows = bullish, lower highs/lows = bearish).
- Draw liquidity pools: prior day high/low, weekly open, and obvious equal highs/lows.
- Session plan = “If price sweeps liquidity into HTF level and gives my picture, I trade with HTF bias; if not, I wait.”
- One bias per session; do not flip sides mid-session unless the HTF structure actually breaks.
- If HTF is choppy (no clear trend, overlapping candles), cut risk by 50% or stand aside.
Pre-Market Routine (The Playbook Pass)
Consistency starts before the bell. This routine sets your brain on rails so you don’t improvise when money’s on the line.
- In 10 minutes, complete: HTF mark-up → session bias → two if-then scenarios → alert levels on your platform.
- Screenshot the plan with levels labeled “Alert A/B/C.”
- Write your trigger sentence: “I enter long only on retest hold with rejection close at [level].”
- Set a timer to re-check every 15 minutes; no chart staring between alerts.
- Disable platform sounds/notifications unrelated to your alerts.
Journal & Review (Fast, Not Fancy)
The edge compounds when you learn from your last 20 trades. This section gives a lightweight journal that actually gets done and a weekly review that upgrades your rules.
- Capture three images per trade: pre-trade plan, entry candle, and final exit.
- Log five fields only: setup type, R result, reason to enter, rule violations (Y/N), and emotion (1–5).
- Daily: tag each trade “A, B, or C” quality; new trades allowed only if the last entry was A or B.
- Weekly (30 minutes): tally win rate and average R for each setup; delete the lowest-performing variant.
- Promote any rule that saved you money 3+ times in the week to “non-negotiable.”
Psychology & Energy Management
Tanz keeps trading deliberately “boring” so his decision quality stays high. These rules help you protect focus, avoid impulse, and keep the process sustainable.
- Maximum screen time per session: 90 minutes; add a 10-minute walk at halftime.
- No social media or P&L tab open during live risk.
- If you feel the urge to “make it back,” shut the platform and write a 3-line debrief instead.
- Keep a small “win stack”: print or list three perfect-process trades and read before each session.
- Sleep and food are part of the system: no trading on <6 hours of sleep or when you’ve skipped a meal.
Funding, Scaling & Drawdown Rules
Growth matters only if you keep the curve smooth. This section lays out when to add size, how to protect payout months, and what to do when the slump hits.
- Increase risk by 25% only after 20 consecutive trades with positive expectancy (win rate × avg R > 0).
- On funded accounts, prioritize longevity: risk ≤0.25% per trade and obey the firm’s max daily loss with a personal buffer of 20%.
- Payout month: reduce frequency, focus only on A-setups, and stop trading after the first +2R day.
- Drawdown protocol: at −3R in a week, switch to replay/sim for the next session, and review the top 10 screenshots.
- Never stack correlated positions; if you must, cap combined risk to your single-trade risk.
The One-Page Checklist (Run It Before Every Trade)
This final section condenses the process so you can glance once and act. If all boxes aren’t ticked, you don’t trade—simple.
- Market & session match my plan.
- HTF bias aligned; key liquidity/levels marked.
- Picture present (break-retest or failed-break) with all conditions.
- Risk pre-set, stop at invalidation, targets defined.
- News checked, alerts set, journal ready.
Size Risk First: Fixed-R and Daily Loss Caps Protect Longevity
Tanz makes risk sizing the first decision, not an afterthought. He sets a fixed-R per trade so outcomes are measured in clean multiples, not in dollars that trigger emotion. His stop sits at true invalidation—not a round number—so every losing trade teaches the right lesson instead of a lucky dodge. A firm daily loss cap closes the platform before tilt begins, turning bad days into controlled scratches rather than account dents.
When variance bites, Tanz downshifts instead of pressing harder. After a few reds or a hit to the daily cap, he cuts size, reviews screenshots, and won’t re-enter until his setup picture is back on the screen. Wins are allowed to grow per plan, but position size only scales after a statistically meaningful sample shows positive expectancy. That’s how Tanz buys longevity with discipline—and how longevity unlocks compounding that the impulsive never get to see.
Let Volatility Lead: Adjust Position Size by ATR and Session Range
Tanz frames size around the market’s current noise level, not a fixed pip or dollar target. He checks the instrument’s ATR and the live session range, then scales the position so a normal fluctuation won’t knock him out. If ATR expands, his size contracts; if volatility compresses, he allows a touch more size while keeping risk per trade constant in R. This keeps stops at true invalidation while making sure the distance to stop aligns with what price is actually doing today.
He also times entries around session volatility cycles, so he’s not sizing the same at open and at lunchtime drift. When a level breaks with momentum and range is stretching, Tanz takes partials sooner and trails tighter to respect fast tape. On slower days, he widens the stop to match ATR and aims for measured targets rather than hoping for a runner that the market won’t give. The principle is simple: let volatility set your distance, let distance set your size, and let size keep your risk steady.
Diversify Smartly: Mix Underlyings, Strategy Types, and Holding Durations
Tanz doesn’t spread thin; he diversifies with intention across a few uncorrelated levers. He’ll pair an index future with a currency and one commodity, avoiding clusters that all move on the same macro headline. Within that basket, he runs both breakout and mean-reversion plays, so one style can carry when the other cools. Duration is a lever too: a quick session trade can sit alongside a swing anchored to daily structure, so he isn’t forced to overtrade when intraday action is messy.
He keeps the rules consistent while the knobs change. If equities and FX start correlating hard, Tanz pauses one and lets the cleanest tape lead. When volatility rises, he lets the breakout system take point; in compressed ranges, he leans on mean reversion with smaller targets and tighter management. The result is a portfolio of edges that take turns—same process, different engines—so his equity curve depends less on any single market or regime.
Trade the Mechanics: Rules, Checklists, and Repeatable Triggers Over Predictions
Tanz doesn’t try to guess where the market “should” go; he trades a pre-defined picture or he does nothing. His checklist forces sequence: HTF bias set, key level marked, liquidity swept or structure broken, retest holds, trigger candle confirms—then and only then does he click. The same words live in his playbook and on his chart, so there’s no room for interpretation mid-trade. If one required element is missing, Tanz skips it, because a 90% setup is simply not his setup.
He also standardizes management so execution feels boring on purpose. Partial at 1R to reduce risk, stop to breakeven only after structure confirms, then trail behind swings or exit at the next HTF level—no on-the-fly heroics. Journaling tracks compliance with the checklist, not just P&L, so he can see whether a red trade was a bad outcome or a broken rule. The result for Tanz is calm repetition: fewer decisions, faster decisions, and more consistent results than prediction-driven trading ever delivers.
Choose Your Risk: Defined Spreads Versus Naked Exposure, Match Tactics To Context
Tanz is deliberate about how he takes risks: sometimes he wants bounded loss, other times he wants full directional torque. When volatility spikes or event risk looms, he favors defined-risk structures—option spreads or tight stop-and-reentry protocols—so a single wick can’t wreck the day. In smooth, trending tape, he’s comfortable with “naked” exposure (spot, futures, or a single-option leg) because the market is paying him with cleaner follow-through. The rule is simple: cap the downside when randomness is high; free the upside when structure is clear.
He also matches tactics to objectives before the session even starts. If he plans to harvest base hits, Tanz uses defined risk with pre-set partials and a mechanical trail; if he’s hunting a runner, he lets exposure breathe and manages via structure breaks. Funding or firm rules get factored in too—defined risk when limits are tight, more open exposure when drawdown headroom exists. By choosing the risk tool first, Tanz keeps the strategy aligned with the environment, not his mood.
In the end, Tanz’s edge isn’t a secret pattern—it’s the discipline to do the same boring, correct things every day. He trades a tight window when he’s sharp, comes in with a simple mechanical plan, and waits for the picture to form instead of trying to predict it. Risk is sized first, stops sit at true invalidation, and daily loss caps protect decision quality. He keeps expectations realistic, treats compounding like the real alpha, and uses journaling plus accountability to kill off the four or five impulsive trades that usually sink a week.
He also thinks like a portfolio manager, not a signal chaser: diversify across a few uncorrelated markets, match tactics to volatility, and pick defined or open risk based on context. Funding is a tool—not a finish line—and process beats marketing every time. If you copy just three things from Tanz, copy this: write a one-page checklist you can execute half-asleep, size every trade by risk, not hope, and only trade when your picture is actually on the screen. That’s how you convert “good ideas” into an equity curve that keeps climbing.
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