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This interview features Stacey Burke on the Desire To Trade podcast, hosted by Etienne Crete. Burke is a former chiropractor turned full-time market operator who battled through a decade of mistakes before distilling a clean, repeatable approach to trading. He matters to retail traders because he blends classical charting with ruthless risk control, borrowing mindset lessons from pros like Peter Brandt and Brent Penfold while keeping the playbook simple enough to run around real life and family.
In this piece, you’ll learn exactly how Stacey Burke structures an end-of-day, rules-driven strategy: why being the “best loser” powers long-term profitability, how to target asymmetrical reward (think 3–5R) using straightforward horizontal breakouts, and the routines he uses to stay consistent. We’ll cover his money-management rules, daily workflow, journaling habits, and the psychology that keeps him out of the chop and focused on defense first—so you can adapt the same process without living at the screens.
Stacey Burke Playbook & Strategy: How He Actually Trades
Core Philosophy: Defense First, Simplicity Always
This is the mindset Stacey uses to stay consistent without living on the screens. It’s about protecting downside, waiting for the obvious, and letting asymmetric reward do the heavy lifting.
- Risk a fixed fraction per trade: 0.25%–0.5% of equity for swing trades; never more than 1%.
- Never widen stops after entry—only tighten or exit; losers are cut at the initial stop, period.
- Trade only clean, repeatable patterns you can explain in one sentence.
- Expectancy over ego: pass on “maybe” setups; only take A-setups that historically yield ≥2R.
- Track process metrics (rules followed) ahead of P&L; P&L is a lagging indicator.
Market Universe & Timeframes
Stacey focuses on instruments that trend cleanly and respect levels. The aim is to reduce noise and increase the odds of clear signals.
- Prioritize liquid FX majors/crosses, index CFDs/futures, and top-volume equities/ETFs.
- Use the daily chart for signal generation; confirm context on weekly; time entries on 4H/1H.
- Avoid news-spiked small caps and illiquid pairs unless they meet strict liquidity and spread criteria.
- Skip earnings week for single-name equities unless position size is halved and risk is pre-defined.
Chart Prep: Levels, Structure, and Volatility
Clean preparation lets you act quickly when the price reaches your zone. This section lays out how to mark the map before the day begins.
- Draw horizontal S/R from weekly and daily swing highs/lows; mark only the 2–3 most obvious.
- Add an ATR(14) on the daily to gauge volatility; note today’s ATR as a proxy for stop/target sizing.
- Identify structure state: trend (HH/HL or LH/LL), range, or transition; only trade with state-appropriate tactics.
- Pre-plan “if-then” triggers at levels (e.g., “If price closes above 1.0850 on D1, then look for 1H pullback entry”).
Entry Triggers: Breakouts and Pullbacks That Actually Hold
Entries are chosen to minimize false starts and maximize staying power. You’ll use confirmation on the higher timeframe and execution on the lower.
- Breakout entry: Daily close through a clearly defined level + next session 1H pullback that holds prior resistance-turned-support.
- Pullback entry: In trend, buy/sell the first higher low/lower high into a level with a 1H rejection wick + volume/impulse confirmation.
- Require confluence: level + structure + ATR context; skip trades missing any leg of the tripod.
- Enter only if stop ≤ 1×ATR(14) (daily) from entry; if wider, reduce size or skip.
Initial Stops and Position Sizing
Your stop defines the idea. Keep it where the setup is invalidated, not where it “feels” comfortable.
- Place the stop beyond the structure that proves you wrong (below the last swing low for longs; above the last swing high for shorts).
- Size position so 1R equals your fixed risk (e.g., 0.5% of equity); position size = (Account × Risk%) ÷ (Stop distance).
- If the planned stop exceeds 1.25×ATR(14) (daily), either drop to a better entry on 1H/4H or skip.
- No pyramiding on day one; add only after price moves +1R and forms a fresh, valid structure point.
Trade Management: From +1R to Letting Winners Run
Managing the middle is where most traders give back edge. Here’s how Stacey keeps it systematic.
- At +1R: move stop to breakeven only if the higher-timeframe level has flipped and the 1H structure confirms; otherwise hold.
- Partial at +2R or first major daily level; trail the remainder using 1×ATR(14) “chandelier” or last swing structure.
- If momentum stalls and prints two consecutive 1H lower highs (for longs) against you near resistance, reduce to core size.
- Never let a +2R open gain turn into a loss; trail to at least breakeven once +2R is tagged intraday.
Exits: Objective and Pre-Committed
Exits are planned before you click buy. This section makes sure profits don’t evaporate into “I’ll just see what happens.”
- Hard exit if daily closes back inside the broken level (failed breakout) and 1H confirms with a lower high/higher low against position.
- Time-based exit: if no progress after 3–5 trading days and the structure is flat, close, or cut in half.
- Profit targets anchored to structure: prior daily swing, measured move equal to stop distance (2R–5R), or ATR-projected move.
- News filter: flatten ahead of high-impact events if the stop would be inside the typical event range (e.g., CPI, NFP for USD pairs).
Daily Workflow: End-of-Day Edge
Consistency beats intensity. Here’s the daily cycle to keep the playbook tight without burnout.
- Pre-market (15–20 min): update levels, ATR, and watchlist; write two sentences per symbol (“if-then” triggers).
- Mid-session check (optional): 5-minute sweep for alerts only; no chart surfing.
- End-of-day (30–40 min): review signals, place/adjust orders, update journal, and set price alerts for tomorrow.
- Max 3 concurrent positions; correlation cap: avoid >2 positions with ≥0.7 positive correlation.
Weekly Review: Sharpen the Edge
The review cements what’s working and prunes the rest. Keep it short, honest, and data-driven.
- Grade each trade A/B/C based on rule adherence, not outcome.
- Compute weekly expectancy: Win% × AvgWinR − (Loss% × AvgLossR); aim for ≥0.4R per trade.
- Identify the top 2 setup contexts (e.g., daily breakout with 1H pullback) and allocate 70% of risk budget to them next week.
- Archive 3–5 annotated charts of best/worst trades with one-line lessons.
Psychology & Risk Boundaries
The goal is durable performance, not heroics. These rules prevent tilt and protect capital during inevitable drawdowns.
- Daily loss limit: 1R; weekly loss limit: 3R; hit either and stop trading until the next session/next week.
- “Three strike” rule: three consecutive rule breaks trigger a mandatory day off and a checklist reset.
- Use a decision checklist before entries (state, level, ATR, trigger, stop, size); no checklist, no trade.
- Keep position sizes boring; if you feel excited or scared, size is too big—cut it.
Journal & Metrics That Matter
If you can’t measure it, you can’t manage it. Track only what improves decisions.
- Log: setup type, timeframe alignment, ATR multiple of stop, R multiple planned/realized, and whether you followed each rule (Y/N).
- Score “clarity” from 1–5 based on how obvious the level/trigger was; don’t trade <3 cClarity
- Monitor distribution of outcomes by setup; drop bottom-quartile setups for a month and re-test later.
- Review median R per setup monthly; reweight capital toward the top two performers.
Playbook Templates & Alerts
Templates reduce friction so you can execute fast and clean. Set these up once and reuse forever.
- Create order templates: breakout-pullback, trend-continuation, and range-reversal, each with default stop logic and risk%.
- Pre-build alert scripts at key levels (break, retest, failure); alerts should include the if-then text you wrote in prep.
- Use standardized tags in your journal (#breakoutD1, #pullback1H, #ATR1x) to filter data quickly.
- Keep a one-page “Rules Card” visible: risk % per trade, loss limits, entry checklist, and exit triggers.
Scaling & Capital Efficiency
As the equity curve climbs, scale methodically without changing the feel of execution.
- Increase risk per trade in 0.1% steps only after 20-trade samples show positive expectancy and max drawdown <5R.
- Cap total open risk at 2R; if adding a third position, reduce existing risk so the sum stays ≤2R.
- Add to winners only on fresh structure after +1R, never on momentum spikes; each add must have its own invalidation.
- Withdrawals and deposits: adjust position sizing immediately so risk% always maps to current account equity.
Size risk is small and consistent; compound edge with fixed R
Stacey Burke stresses that your edge comes alive only when your risk is tiny and repeatable. He treats each trade as one standardized bet, measured in R, so results are comparable and emotions are dialed down. With a fixed fraction per trade, a losing streak is survivable, and a winning streak compounds without sudden leaps in size.
Burke’s rule is simple: decide the R before entry, place the stop where the idea is invalid, and size so a loss equals that fixed R. He never widens stops after entry and doesn’t “round up” position size to feel bigger. Over time, this uniform sizing turns small advantages into real equity growth while keeping drawdowns shallow. If a setup demands a wider stop, he just reduces the size of—edge stays, ego leaves.
Trade mechanics over prediction: rules, levels, and repeatable triggers
Stacey Burke says your job isn’t to predict, it’s to execute a repeatable process. He marks obvious daily levels, decides the “if-then” ahead of time, and waits for the price to confirm with structure. No level, no trade—he’d rather miss than guess. The goal is to trade the same play the same way, every time.
For entries, Burke looks for a clean daily break and then a 1-hour pullback that holds the flipped level. The stop goes beyond the invalidation point, not where it “feels” safe, and the target is framed in R multiples. If the trigger doesn’t appear, he does nothing; discipline is the edge. Prediction flatters the ego, but mechanics pay the bills.
Let volatility guide stops, targets, and position sizing decisions.
Stacey Burke anchors trade risk to what the market is actually doing, not what he hopes it will do. He uses volatility—think daily range or ATR—to place stops outside normal noise and to scale position size so each trade risks the same R despite changing conditions. In a calm regime, he’ll allow tighter stops with slightly larger size; in wild regimes, he accepts wider stops and cuts size to keep risk constant.
Targets follow the same logic for Stacey Burke: when volatility expands, he lets winners breathe and aims for higher R multiples; when it contracts, he banks profits sooner at nearby structure. If ATR swells and a planned stop would be beyond his maximum, he simply skips the trade. He won’t let low volatility lull him into overtrading either; if the range is too tight for a clean setup, he waits. Volatility sets the boundaries—his rules do the rest.
Diversify by market, strategy, and timeframe to smooth the equity curve.
Stacey Burke spreads risk so no single idea or market can hijack results. He mixes instruments—FX majors, indices, and select large-cap names—so correlated drawdowns are capped and winners can tag in when others stall. He also rotates play types, running both breakout and pullback variations, because different regimes reward different mechanics. The goal isn’t more trades; it’s multiple independent edges working quietly in the background.
Timeframe diversification is equally important for Stacey Burke. He takes signals from the daily and executes on the 1-hour, while keeping a weekly lens to avoid fighting the bigger structure. If one lane goes cold—say, breakouts—he dials back that bucket and lets pullbacks or range reversals carry more weight. Position sizing remains constant per trade, but he limits total exposure when correlations spike, keeping the equity curve steady and the stress level low.
Define risk upfront, never widen stops, trail winners intelligently
Stacey Burke commits to his risk before he ever clicks buy or sell. The stop goes where the idea is proven wrong, and the position is sized so that loss equals his fixed R—no exceptions. If the market moves against him, he takes the hit and resets; he does not widen stops, average down, or negotiate with price. This keeps emotions out and preserves the math of his edge.
When trades work, Stacey Burke shifts from defense to stewardship. He trails stops behind a fresh swing structure or an ATR-based distance, so winners have room to breathe. At key milestones—like +2R or a major daily level—he scales some profits and locks the rest to breakeven or better. If momentum fades and structure flips, he exits without debate. The result is clean losses, durable winners, and a process that compounds without drama.
Stacey Burke’s core message is disarmingly simple: play great defense, keep the process simple, and learn to be an exceptional loser so your winners can matter. He shifted toward an end-of-day, rules-driven workflow to reduce mistakes and screen-time stress, placing orders, parking them, and reassessing the next day. That cadence helps him avoid the chaos of live sessions, focus on obvious daily levels, and stay positioned for multi-day moves instead of scalping noise.
From there, the rules tighten: fix risk per trade in R, put stops where the idea is wrong, never widen them, and aim for asymmetry—think three, four, even five to one—so a handful of winners pays for the inevitable losses. He journals relentlessly to cut analysis paralysis, keeps execution checklists, and reminds himself that the “huge trade” probably won’t be; money is the by-product of doing the right work the right way. In short, Stacey Burke’s edge isn’t prediction—it’s structure, routine, and risk math that compound quietly over time.
