Table of Contents
On this Words of Rizdom podcast, the guest is Ibby—head coach at Falcon Trading—sitting down in London to unpack how he went from teenage dropout to mentoring traders under Mark Hutchinson’s wing. He’s candid about early wins, crushing setbacks (including burning through investor capital and prop challenges), and the mindset shift that kept him in the game. You’ll hear how community, loyalty, and repetition shaped a trader who prizes clean charts, routine, and integrity as much as entries and exits.
Read on to learn the actual strategy beats: why a one-system focus compounds faster than system-hopping, how to set hard drawdown rules you’ll actually obey, and how to close the gap between pristine backtests and messy live execution. We’ll also break down Ibby’s process goals (track record first, capital later), his “critical thinking over crowd noise” filter, and the psychology drills that keep you calm when a losing streak tries to hijack your plan.
Ibby Playbook & Strategy: How He Actually Trades
Core Beliefs & Edge
This is the foundation. Ibby keeps his playbook simple: one clean, rules-based approach, executed the same way every time. The goal is consistency and scalability—not dopamine spikes.
- Trade one primary system; if a setup doesn’t fit, pass.
- Price action and structure lead; indicators are optional and secondary.
- Edge = repeatable pattern + strict risk + disciplined execution.
- No “idea chasing”: if the pre-defined criteria aren’t met, no trade.
- Track record first, capital second—performance attracts funding, not the other way around.
Market & Timeframe Focus
A narrow focus helps you see the same pictures repeat. Ibby keeps a small universe, so decisions are faster and quality stays high.
- Pick 3–6 liquid markets you know well (e.g., major FX pairs or top indices).
- Primary timeframe: 4H for structure; 1H/15M for precision; daily for context.
- Only trade your A and A-minus patterns; B setups are journaled, not traded.
- Limit to 1–2 correlated positions at a time; if in EUR-heavy exposure, skip duplicate risk.
- Predefine session windows when you’re allowed to execute (no off-hours impulse trades).
Risk & Drawdown Guardrails
Survival is the edge multiplier. Ibby hard-codes drawdown limits so he never negotiates with himself mid-pain.
- Risk 0.5% per trade when cold; up to 1% only after two weeks of clean execution.
- Daily max loss: 1.5% total. Hit it → stop trading for the day.
- Weekly max loss: 3%. Hit it → halt until next week and run a review.
- Hard equity drawdown cap: 10%. If reached → automatic 2-week reset and sim-only.
- After 3 consecutive losses, reduce risk by 50% until +2R net is booked.
Entries, Stops, and Trade Management
Clear mechanics keep emotions out. Ibby treats stops as non-negotiable and lets the math do the talking.
- Place stops beyond the structure, not at the structure; add a small buffer (e.g., ATR(14) × 0.25).
- Target placement: minimum 2R; if you can’t structure 2R, don’t take it.
- Move to breakeven only after price closes beyond the first objective (e.g., 1R or key level), not mid-candle.
- Scale out: take 30–50% at 1R if volatility is elevated; otherwise hold for full 2R.
- One active management rule per trade: choose either trail-by-swing or partial-then-hold—never both.
The A-Setup Checklist (Pre-Trade)
A quick, repeatable checklist reduces hesitation. If any line fails, the trade is auto-disqualified.
- Structure aligned on a higher timeframe (daily/4H) with the intended direction.
- Clear catalyst level: break/retest, channel touch, or consolidation range edge.
- Risk: Reward ≥ 1:2 at entry using real stop distance.
- No conflicting news within your “danger window” (e.g., 30m before/after tier-1 data).
- Correlation check passed; exposure fits portfolio limits.
The B-Setup Protocol (Pass Intelligently)
You will see tempting B setups. Ibby captures them for learning—without paying tuition.
- Screenshot and annotate the setup; write what would make it an A-grade next time.
- Log theoretical entry/exit and R result—no execution allowed.
- Review B-setups weekly to refine your A-criteria.
- If a B-setup type proves statistically strong after 30+ samples, promote it with rules.
- Never “upgrade” a B to an A in real time; upgrades occur only during scheduled reviews.
Journaling & Review Loop
Data beats memory. Ibby journals to separate edge issues from execution issues and to build confidence the right way.
- Journal every trade with: setup tag, screenshots (before/after), reasons for entry, rule chosen for management, emotions (1–10).
- Tag outcomes by error type: analysis, execution, or discipline (AED).
- Weekly review: compute win rate, avg R, expectancy, and AED counts; set one improvement goal.
- Keep a “playbook wall”: top 20 textbook examples of each A-setup, printed or on a board.
- If two execution errors occur in a week, a mandatory simulator day is required to recalibrate entries.
Prop & Funding Tactics
Funding multiplies what already works. Ibby treats prop capital like a regulated environment with zero wiggle room.
- Trade smaller than the firm’s max; keep risk at or below 0.5% until you’re +4R on the account.
- Respect platform quirks: always verify stops are placed; no market closures near TP/SL adjustments.
- Pass-phase posture: take only A-setups with ≥2R; no stacking multiple new trades on the same day.
- Post-phase posture: add size only after a +5R cushion; cut back to baseline after any −2R day.
- Maintain a separate personal account to test tweaks—prop is for production, not experimentation.
Psychology & Identity
Mind follows rules when identity is set. Ibby works from the identity of a professional who executes a process, not a gambler hunting fireworks.
- Daily priming: read your “I am” identity statement before charts (30 seconds).
- Pre-trade breathing: 3 slow breaths before clicking; if heart rate spikes, step away for 2 minutes.
- Banter blackout: no social feeds when managing an open trade.
- Loss reframe: Say out loud, “I paid for information,” then log the lesson in one sentence.
- Success criteria: 20 straight trades executed rule-perfectly > short-term PnL.
Weekly Routine & Process Goals
Consistency lives in the calendar. Ibby locks routine blocks so edge compounds without drama.
- Sunday map: 60–90 minutes to mark higher-timeframe structure, key levels, and A-zones.
- Daily open: 15-minute prep (levels, news window, plan A/B/C) before any orders.
- Midweek audit (Wed): if below plan or execution slips, cut risk by 50% for Thurs–Fri.
- Friday close: archive charts, compute weekly stats, and write one “Keep/Stop/Start” line.
- Monthly: 10 best/10 worst trades, update playbook, and retire one weak behavior with a written rule.
Scaling & Portfolio Construction
Growth is deliberate. Ibby scales only when the recorded process can handle it.
- Increase per-trade risk by +0.25% only after two consecutive green weeks without execution errors.
- Cap open risk at 1.5–2% across the book; trims first, adds later.
- If the instrument’s win rate dips below 45% over the last 30 trades, place it on probation (journal only).
- Add a new market only after 50+ backtested samples of your A-setup on that instrument.
- Raise the monthly target slowly (e.g., from 2R to 3R) only after three months of hitting the prior target.
News & Volatility Handling
Volatility is an opportunity if planned, a landmine if not. Ibby codifies how he behaves around data and sessions.
- No new positions 30 minutes before/after tier-1 events for that instrument.
- If already in a trade into news, pre-plan: either reduce size to flat risk or widen stop only if R remains ≥1:2.
- During high-vol weeks, take partials earlier (at 1R) and trail by swings; in calm weeks, aim for full 2–3R.
- Spread check: if spread > average × 2 at entry time, wait for normalization.
- If slippage occurs, log the size and broker/time; adjust future session windows accordingly.
Execution Hygiene
Clean inputs = clean outputs. Ibby removes preventable errors with a tight execution routine.
- Confirm ticket: direction, size, stop, TP, and account (prop vs personal) before sending.
- Use limit orders for precision; market orders only for planned breakout rules.
- One chart template per system; hide non-essential tools during execution hours.
- If you change any rule mid-trade, close the position and journal why—no “on the fly” edits.
- End of day: flatten any trade that no longer meets the checklist on a candle close.
Size Risk First: Fixed R Per Trade, Hard Daily Stop
Ibby doesn’t start with entries—he starts with risk. Before any chart work, he sets a fixed R per trade so position size snaps to the stop, not the other way around. That way, his losers are standardized and his winners scale cleanly when the edge shows up. The effect is simple: Ibby’s equity curve is protected from one bad impulse or a “felt right” oversized bet.
He also runs a non-negotiable daily stop, and when it’s hit, he’s done—no “one more try.” This forces discipline on tough days and keeps psychological capital intact for the next session. Ibby treats the daily stop like a circuit breaker: it prevents tilt, revenge trades, and slipping from plan to hope. By sizing through R and obeying the daily cap, he gives variance less room to wreck him and more room for the math to work.
Trade What’s Repeatable: Mechanics Over Prediction, Rules Over Opinions
Ibby builds his edge around repeatable mechanics, not clever market calls. He wants a setup he can describe in one sentence and execute the same way on Monday and Friday. If the trade requires a “feel” for macro or a hunch about headlines, he passes. For Ibby, repeatability beats brilliance because it scales, audits cleanly, and survives bad days.
He also separates analysis from execution: the checklist decides, not his mood. Once the rules say “go,” Ibby inputs the order, places the stop, and steps back—no fiddling mid-candle. If the rules say “no,” he screenshots it and moves on without FOMO. By keeping mechanics above prediction and rules above opinions, Ibby turns trading from a guessing game into a consistent, testable process.
Let Volatility Lead Position Sizing, Targets, And Exit Timing
Ibby sizes trades off current volatility, so the same setup isn’t treated the same in wildly different markets. When ATR expands, he widens stops, reduces size, and accepts that the first target may come quicker; when volatility contracts, he tightens structure and only takes trades that still clear a clean 2R. He treats volatility as the metronome: it sets the tempo for entries, risk, and expectations—never vibes or hope.
On exits, Ibby lets volatility choose between partials and trails. If ranges are explosive, he takes a portion at 1R to bank realized edge, then trails by recent swing lows/highs; in calmer conditions, he holds for full targets and avoids overmanaging. He won’t enter if spread or slippage spikes beyond his volatility thresholds. By letting volatility steer size, targets, and exit timing, Ibby keeps his process adaptive without changing the core strategy rules.
Diversify By Underlying, Strategy, And Duration—Not By Random Tickers
Ibby doesn’t diversify by throwing darts at a watchlist—he diversifies by risk drivers. He spreads exposure across different underlyings (FX majors vs. indices), different strategy types (trend continuation vs. mean reversion), and different holding durations (intraday vs. swing), so one bad regime doesn’t nuke the whole book. If two trades move on the same catalyst, he treats them as one risk unit. That’s why Ibby limits correlated positions and caps total open risk across similar instruments.
He also staggers time-in-market. Ibby might pair a high-conviction swing with a smaller intraday scalp in an uncorrelated asset, or skip the scalp entirely if it just doubles the same risk. He avoids stacking similar patterns back-to-back unless the data shows independent expectancy. When correlations spike, he scales down or goes “one-and-done” until dispersion returns. For Ibby, diversification isn’t owning more trades—it’s owning different risks.
Build Process Discipline: Pre-Trade Checklist, Post-Trade Review, Weekly Audits
Ibby treats discipline like a system of systems: prep, execute, review. Before he clicks, he runs a pre-trade checklist that covers structure alignment, risk: reward, news windows, and correlation—if any one box fails, it’s an automatic pass. He sets intent for the session in one sentence (“Take only A-setups to 2R”), so he isn’t inventing rules mid-trade. During execution, Ibby follows a single management rule per position to avoid emotional tinkering. The idea is simple: reduce decisions, raise consistency.
After the close, Ibby scores each trade on analysis, execution, and discipline, then tags errors so the fix is obvious. He holds a quick weekly audit to check win rate, average R, and how well he obeys risk limits; if the process slips, risk is cut until the numbers recover. Ibby keeps a “playbook wall” of his top textbook examples to anchor memory to evidence instead of feelings. He also journals B-setups he passed on to validate patience over time. For Ibby, process discipline isn’t motivational—it’s measurable, repeatable, and the only reason the edge survives rough patches.
In the end, Ibby’s edge isn’t a fancy indicator—it’s the way he runs himself. He turned early setbacks with investor money and prop evaluations into rules that now protect his downside: fixed-R risk, a hard daily stop, and strict drawdown brakes that force a reset before damage compounds. Add in a narrow market focus, a single management rule per trade, and a bias for clean structure over forecasts, and you get a playbook that’s simple enough to repeat but robust enough to scale. The Falcon coach also leans on community and mentorship—evidence over ego—to shorten feedback loops and keep the process honest.
If you take one thing from Ibby, make it this: professional results come from professional routines. Map higher-timeframe structure on Sundays, run a pre-trade checklist every session, tag every mistake by type (analysis, execution, discipline), and audit weekly with real metrics (win rate, average R, expectancy). Size by volatility, avoid stacking correlated bets, and treat prop capital like a regulated environment—test tweaks elsewhere. Do that, and the “secret sauce” stops being a mystery. It’s the compounding effect of small, non-negotiable behaviors that let your strategy survive bad days and capture the good ones.
