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In this interview, Etienne Crete, a trader and the host of the Desire to Trade podcast, shares insights into his trading journey and strategy. From his humble beginnings in the world of trading, Etienne takes us through his progression from learning to trading full-time while balancing his podcast and other ventures. His story is one of perseverance, learning from mistakes, and the pursuit of consistent improvement. Etienne has a unique approach to the market, blending concepts from various mentors, with a focus on swing trading based on multiple time frames, including daily and weekly charts.
Through this post, readers will learn the key elements of Etienne’s trading approach, including his swing trading techniques, how he uses Bollinger Bands for market analysis, and the importance of building a solid learning process. You’ll also hear about his mindset towards setbacks, how he stays motivated through challenging times, and why consistency is the ultimate goal. Etienne’s strategy and lessons are especially valuable for traders who are looking to cultivate their own trading style while staying patient and disciplined in their journey.
Etienne Crete Playbook & Strategy: How He Actually Trades
The Core of Etienne Crete’s Trading Strategy
Etienne focuses on swing trading, using multiple time frames to get a clearer picture of market trends. He looks at the bigger picture before zooming in on specific entry points. This section outlines the core aspects of his trading strategy, including time frames, chart setups, and his philosophy on risk management.
- Swing Trading Focus: Etienne primarily uses a swing trading strategy, meaning he holds positions for several days to weeks. His goal is to capture medium-term price movements without getting caught in the noise of intraday fluctuations.
- Multiple Time Frames: Etienne uses daily and weekly charts to analyze broader market trends. He then drills down to the 4-hour chart to find specific entry points. This method helps him avoid the temptation of overtrading while still finding profitable setups.
- Price Action and Indicators: He combines price action with technical indicators, particularly the Bollinger Bands, to identify potential reversal zones. Etienne looks for the price to reach the upper or lower band and confirms the setup with candlestick patterns that suggest a reversal.
- Risk Management: Etienne emphasizes the importance of risk management and limiting the size of each position. He suggests not risking more than 1-2% of your account on a single trade, ensuring that one loss won’t drastically affect the overall capital.
How Etienne Analyzes the Markets
Etienne’s analysis is rooted in identifying market phases and then looking for specific setups within those phases. This section delves into how he uses his preferred indicators and the mindset behind each trade setup.
- Big Picture First: Before getting into specific trades, Etienne takes a step back to understand the broader market trend. This helps him avoid fighting against the larger move and aligns his trades with the prevailing market momentum.
- Bollinger Bands for Reversal Zones: Etienne uses the Bollinger Bands to find potential reversal points. When the price hits the upper or lower band, he looks for candlestick formations like engulfing patterns or pin bars to signal a trade setup.
- Market Phases: Etienne uses a market phase approach, analyzing whether the market is trending or consolidating. He then tailors his strategy based on whether the market is in an expansion or contraction phase. This helps him identify the best time to enter a trade.
- Trend Confirmation: After identifying a potential setup, Etienne ensures that the trade is in line with the market’s overall trend. If he’s looking to enter long, for example, he confirms that the overall trend is bullish.
Etienne Crete’s Trade Setup: Step-by-Step
Now that we understand how Etienne analyzes the market, let’s break down the specific steps he takes when entering a trade. This process ensures that every trade is part of a repeatable system that’s easy to follow.
- Step 1: Identify the Market Phase: Etienne starts by identifying whether the market is in an uptrend, a downtrend, or a consolidation phase. This helps him determine which direction to trade.
- Step 2: Find a Key Support or Resistance Level: Etienne looks for price action at key support or resistance levels that align with the trend. These levels often act as reversal points, especially when combined with other technical indicators.
- Step 3: Confirm with Candlestick Patterns: Once the price reaches a key level, Etienne watches for specific candlestick patterns such as engulfing patterns or pin bars. These patterns act as confirmation signals for his trades.
- Step 4: Check Bollinger Bands: He ensures the price is reaching the upper or lower Bollinger Band before taking the trade. If the price is outside the bands, it could be a sign that the price is overextended and ready for a reversal.
- Step 5: Execute the Trade with Proper Risk Management: When everything aligns, Etienne enters the trade, setting stop-loss levels just beyond the key support or resistance area. He uses a risk-to-reward ratio of at least 2:1 to ensure that potential profits outweigh potential losses.
Etienne’s Approach to Staying Consistent
Consistency is a core principle of Etienne’s approach to trading. He stresses the importance of maintaining a disciplined routine, learning from mistakes, and continually refining your strategy.
- Daily Review and Reflection: Etienne spends time each day reviewing his trades, analyzing what went well and where he could improve. This helps him refine his strategy and avoid repeating the same mistakes.
- Focus on One Setup: Etienne only trades one setup consistently, which helps him avoid jumping between strategies and keeps him focused. By focusing on a single setup, he can repeat the same actions every day, gradually improving his performance over time.
- Avoid Comparisons: Etienne emphasizes the importance of not comparing your results to others. Each trader’s journey is different, and focusing on your own progress is key to long-term success. He advises staying focused on your own trading plan and avoiding the trap of comparing results.
Etienne Crete’s Mindset: Staying Motivated and Moving Forward
Trading is not just about technical skills; it’s also about mindset. Etienne discusses how he stays motivated, especially during tough times when the market isn’t behaving as expected.
- Learning from Mistakes: Etienne is a big proponent of learning from mistakes. He views each loss or setback as an opportunity to improve. He suggests journaling your trades and reflecting on what you can learn from both your wins and losses.
- The Importance of Patience: Etienne talks about the need for patience in trading. He advises sticking with a strategy over the long term rather than jumping from one method to another after a few losing trades. Consistency over time leads to profitable outcomes.
- Staying Connected with Other Traders: Etienne finds motivation by interacting with other traders. By exchanging ideas and learning from others’ experiences, he keeps his mind sharp and stays focused on his goals. He suggests joining trading communities and attending events to stay connected and inspired.
How Etienne Crete Uses Multiple Time Frames for Better Trade Entries
Etienne Crete’s approach to trading is deeply rooted in the use of multiple time frames, which helps him get a clearer and more reliable view of market trends. By starting with a higher time frame, such as the daily or weekly charts, Etienne can identify the broader market direction before diving into more granular charts for specific entry points. This process helps him avoid getting caught in short-term price movements and ensures that he’s trading with the overall market trend, not against it. The larger time frames give him a sense of where the market is heading, while the smaller time frames provide the precision needed for execution.
This multi-time-frame strategy is essential to Etienne’s swing trading style. He prefers to focus on the daily and weekly charts for the big picture and then uses the 4-hour chart to pinpoint entries. By doing so, he can time his trades more effectively, entering positions when the market is poised to move in his favor. Etienne’s method not only helps him reduce noise but also ensures that each trade is aligned with the market’s underlying momentum, improving his chances of success. This layered approach to time frames allows him to stay focused, stay patient, and avoid the temptation of jumping into trades that don’t fit his strategy.
Mastering Swing Trading: Combining Price Action with Technical Indicators
Etienne Crete has built his trading strategy around swing trading, a method where trades are held for several days to weeks to capture medium-term price movements. A key component of his strategy is combining price action with technical indicators, specifically Bollinger Bands. Etienne uses Bollinger Bands to identify potential reversal zones in the market, looking for the price to touch or exceed the upper or lower bands. He then confirms the setup with price action signals like candlestick patterns, which act as indicators of potential reversals. By focusing on these setups, Etienne aims to enter trades when the market is at an inflection point, ensuring that his trades are well-timed and in line with the market’s momentum.
What makes Etienne’s approach to swing trading effective is his ability to blend these two elements—price action and technical indicators—seamlessly. He doesn’t rely on just one tool; instead, he uses them in conjunction to confirm his trade decisions. By waiting for the price to reach significant levels and confirming it with price action, Etienne reduces the risk of false signals and increases his chances of success. This disciplined approach, along with his preference for higher time frames to identify the broader trend, gives Etienne a distinct edge in his swing trading strategy. It’s a method that allows him to trade with confidence, knowing that each trade is backed by both technical analysis and solid price action.
Risk Management Secrets: Limiting Losses with Position Sizing Rules
Etienne Crete places a strong emphasis on risk management, especially when it comes to controlling potential losses through position sizing. One of his fundamental rules is never risking more than 1-2% of his total trading capital on any single trade. By adhering to this strict rule, Etienne ensures that no single loss can significantly damage his account or derail his trading progress. This approach is vital for traders looking to stay in the game long-term, as it allows them to withstand inevitable drawdowns without depleting their capital.
In addition to strict position sizing, Etienne also uses stop-loss orders to protect his trades. He sets these stops just beyond key levels of support or resistance, ensuring that if the market moves against him, his losses are capped. This level of discipline helps Etienne stay calm during volatile periods, as he knows his risk is always under control. His risk management strategy is designed not only to limit losses but also to ensure that his profits have the potential to grow steadily over time. By focusing on minimizing risk with every trade, Etienne keeps his capital protected, allowing him to stay consistent and profitable in the long run.
The Importance of Sticking to One Trade Setup for Consistency
Etienne Crete believes that the key to consistent success in trading lies in sticking to a single, proven trade setup. Rather than chasing after multiple strategies or constantly adjusting his approach, Etienne has honed in on one specific setup that he repeats day in and day out. This disciplined approach helps him stay focused, refine his skills, and avoid the distractions that often come with jumping between different strategies. By concentrating on just one method, he can assess it more thoroughly, understand its nuances, and improve his execution with every trade.
For Etienne, the simplicity of focusing on a single setup is crucial for maintaining consistency in his trading results. He believes that trying to master multiple setups at once dilutes attention and can lead to confusion or mistakes. By perfecting one method, Etienne has built a repeatable process that allows him to approach each trade with confidence and clarity. This commitment to consistency is something every trader can benefit from—by sticking with what works, they can avoid overcomplicating their trading and focus on refining a strategy that aligns with their style and goals.
Avoiding the Comparison Trap: Focus on Your Own Trading Journey
Etienne Crete is a strong advocate for staying focused on your own trading journey and avoiding the comparison trap that many traders fall into. In his experience, comparing your results to others can be detrimental to your progress, as each trader’s path, strategy, and timeline are unique. Etienne emphasizes that while it’s natural to look at other traders’ successes, it’s crucial not to measure your worth or progress against theirs. This kind of mindset can lead to frustration, unrealistic expectations, and ultimately burnout. Instead, he suggests focusing on personal growth and continuous improvement, no matter where you are in your trading journey.
By concentrating on your own trades, progress, and learning process, Etienne believes you’ll develop a more sustainable and effective approach to trading. He shares that his own success came from not looking at others’ results, but instead honing his own strategy, learning from his mistakes, and continually refining his process. For Etienne, trading isn’t about competing with others but about mastering your craft and making steady improvements. His advice to other traders is clear: stop comparing your results to others and stay focused on your own development. This mindset not only helps build confidence but also ensures long-term growth in trading.
Etienne Crete’s trading journey is a testament to the power of patience, discipline, and continual learning. Throughout his career, he’s emphasized the importance of developing a solid strategy, sticking to one proven trade setup, and focusing on long-term consistency rather than short-term gains. From his early struggles to his current success, Etienne’s story highlights the critical role that risk management, particularly position sizing, plays in ensuring that no single loss derails your trading career. His use of multiple time frames, combined with his reliance on technical indicators like Bollinger Bands and price action, has allowed him to refine his approach and make more informed, calculated decisions.
Equally important is Etienne’s mindset toward trading. He consistently advocates for learning from mistakes, maintaining a growth-focused attitude, and avoiding the trap of comparing your results to others. For Etienne, trading is a personal journey, and the key to success lies in remaining disciplined, keeping emotions in check, and never giving up—even when the going gets tough. His commitment to continual improvement, along with his focus on building a sustainable trading process, offers invaluable lessons for any trader looking to develop a reliable, long-term strategy.
