Table of Contents
Etienne Crete—founder of Desire To Trade—sits down for a straight-shooting interview on turning scattered chart watching into a clean, repeatable trading process. He’s not selling magic indicators; he’s showing why pros think in systems, not single candlesticks. If you’ve ever chased moves or mixed signals until your plan vanished, this convo is the reset: who Etienne is, how he coaches traders, and why his approach has helped so many get consistent.
Here’s what you’ll get from this piece: how to define a complete strategy with a signal, a precise entry, and a disciplined exit; how to read market phases so you stop forcing one setup into every condition; when to favor pullbacks/retracements in trends versus breakouts or reversals in ranges; and why confluence beats “perfect confirmation” if you want real risk-reward. You’ll also learn practical exit thinking—staying in winners long enough to let the edge pay—plus common mistakes Etienne sees (over-reliance on price action alone, counter-trend stabs in strong trends) and how to fix them fast.
Etienne Crete Playbook & Strategy: How He Actually Trades
Process: a repeatable routine you can run daily
A solid routine removes guesswork and keeps your attention on execution. This section shows the daily flow Etienne uses, so you stop improvising and start operating like a pro. Follow it step by step until it’s second nature.
- Morning scan (15–30 min): index → sectors → watchlist. Note trend/volatility regime for each.
- Define bias per market: uptrend, range, or downtrend only—no “maybe.” If unclear, mark “neutral” and skip.
- Pick 1–2 playbooks for the day: e.g., trend pullback or range reversal. No mixing styles.
- Pre-plan triggers and exits before the open: write them; don’t decide on the fly.
- Limit of 3 active ideas at once: avoid dilution of focus.
- End-of-day review (10 min): log outcomes vs. plan; tag mistakes and wins.
Market regime first: trade the environment, not your hopes
Most mistakes happen when a trader uses the wrong tactic for the wrong market. Here you’ll label the environment first, then match a fitting strategy. That simple match-up improves win rate and stops overtrading.
- Trend test: price above/below 50 & 200 EMA and making higher highs/lows (uptrend) or lower highs/lows (downtrend).
- Range test: 50 EMA flat, swing highs/lows holding; ATR contracting.
- Only run trend setups in trends; only run runmean-reversion setups in ranges.
- If regime flips mid-trade, exit on plan breach; don’t “hope” it reverts.
- No trade if the regime is mixed across timeframes (HTF trend, LTF range) and you’re not trained for multi-timeframe plays.
Set up selection: Confluence beats single signals
One indicator won’t save a weak idea. This section shows how to stack independent edges—structure, levels, momentum—so the odds lean your way. When two or three elements agree, you’ve got a trade worth taking.
- Structure first: HTF SR levels, swing points, and trendlines must be clear on the 4H/D.
- Level + signal rule: only consider entries at pre-marked levels (prior high/low, VWAP, weekly open, Fib 50–61.8).
- Momentum check: RSI crossing 50, MACD zero-line push, or fresh HH/LL candle close.
- Location filter: no chasing entries in the middle of nowhere—price must touch your area.
- News/vol filter: avoid low-liquidity windows and high-impact events unless it’s a dedicated news strategy.
Entry triggers: simple, testable, binary
Entries should be obvious in real time. Below are triggers you can backtest and execute without hesitation. If it’s not binary, it’s not a trigger—wait.
- Trend pullback long: in an uptrend, buy on bullish engulfing (or strong close) off the 20–50 EMA zone at a pre-marked level.
- Range fade: at range high, short on reversal candle with wick rejection; at range low, mirror long.
- Breakout with confirmation: enter on close above/below the level, plus retest that holds; no retest, halfsizez, or skip.
- Time filter: first 90 minutes of the session or the London/NY overlap only (whichever is your edge window).
- One shot per level: if invalidated, do not re-enter until a new structure forms.
Exits: protect the downside, harvest the upside
Exits separate gamblers from operators. Set your stop and targets before you click buy. This section gives you fixed rules that keep losers small and let winners breathe.
- Initial stop: beyond invalidation (below swing low for longs/above swing high for shorts) or 1× ATR from entry—whichever is farther.
- First scale-out: at +1R take 30–50% off; move stop to breakeven only after a confirmed structure break in your favor.
- Let the runner ride: trail behind swing lows/highs or a 20 EMA close; no trailing if it cuts edge (e.g., in choppy ranges).
- Hard exit: if opposite signal prints at your level or ATR collapses below threshold, close remainder.
- Daily loss stop: stop trading for the day at −2R realized; process over revenge.
Risk & position sizing: durability first
Sizing turns a decent idea into a professional trade. You’ll cap downside per trade and per day, so a cold streak can’t take you out. Consistency is the edge multiplier.
- Risk per trade: 0.25–0.75% of equity; beginners stick to 0.25–0.5%.
- Max daily draw: 1.5–2R; hit it and you’re done—review only.
- Volatility-adjusted size: lots = (risk $) / (stop distance in $); wider stops = smaller size.
- Correlation cap: if two trades are highly correlated, they count as one idea—halve each or pick one.
- Weekly risk budget: pre-allocate risk units across A+ vs. B setups (e.g., 70% to A+, 30% to B).
Trade management: rules for when the price moves
Managing open risk is where emotions creep in. Use these protocols to standardize decisions while the trade is live so you don’t sabotage good entries.
- No add-ons until +1R: add only on planned pullbacks at structure; keep total risk ≤ original planned risk after BE move.
- If momentum stalls: partial at the next stall/inside-bar cluster; tighten stop under last higher low/lower high.
- News surprise: if a shock event hits, either flatten or reduce to a runner; resume normal rules after volatility stabilizes.
- Time stop: if price hasn’t moved ~0.5R within your strategy’s average lead time, exit or reduce.
Journal with tags: make the edge measurable
You can’t fix what you don’t measure. Tag every trade so you can see which combos pay and which drain. This section gives a simple schema that turns your history into a roadmap.
- Mandatory tags: regime (trend/range), setup (pullback/fade/breakout), level type (SR/VWAP/Fib), trigger (engulfing/retest/etc), session (LO/NYO/US AM), result (R multiple).
- Error tags: chased, oversized off-plan entry, late exit, news.
- Review cadence: weekly—rank setups by win rate and expectancy; cut bottom 10% of variants.
- Screenshot rule: save entry bar, exit bar, and HTF context for each trade.
- Playbook updates: promote any setup with >100 trades and positive expectancy; demote those that lose over the last 50.
Weekly planning: stack the deck before Monday
Preparation beats reaction. Here’s how to enter the week with clarity on what you’ll hunt and what you’ll ignore. You’ll trade less but earn more per decision.
- Top-down map: Monthly/Weekly trend → Daily key levels → 4H structure. Mark 3–5 A+ zones only.
- Scenario scripts: “If price pulls back to X with momentum Y, I’ll do Z.” Write 2–3 per instrument.
- Calendar filter: mark high-impact events; trade around them only if in your plan.
- Watchlist trim: no more than 6 instruments; drop anything mid-quality or redundant.
Psychology: rules that protect your state
Mindset isn’t fluff when it’s codified. These rules keep you from tilting, forcing trades, or avoiding good ones after a loss. Treat them like risk rules for your head.
- Pre-trade check: slept ≥ 6 hours, no rush, clear stop/target defined—otherwise no trade.
- One loss rule: after a −1R, take a 10-minute reset and review the plan before the next click.
- Green-to-greed guard: if up ≥ +2R on the day, reduce size to half for any new trades.
- Social media blackout: no feeds during active sessions; review educational material after close only.
- Confidence bank: Reread your top 10 textbook trades before the session to prime execution.
Instruments & timeframes: keep the universe tight
Edge scales when your universe is small and familiar. This section helps you pick products and timeframes that fit your availability and temperament.
- Core list: 3–6 instruments you actually know (e.g., 2 indices, 2 FX majors, 1–2 commodities).
- Primary timeframe: execute on 15M/1H with 4H/D as context; scalpers stick to 5M with 1H/4H context.
- Session alignment: trade the session that naturally moves your instruments (e.g., London for FX, US morning for indices).
- Spread/slippage cap: Avoid instruments whose average cost exceeds 10–15% of your typical target.
Playbook evolution: controlled changes, not constant tinkering
Your system should evolve, not swing wildly. Make small, testable adjustments and promote only what proves itself. This is how you grow without breaking consistency.
- One change per month: adjust a single element (entry, exit, filter) and track the impact.
- Forward test 30–50 trades before adopting; no conclusions sooner.
- Keep a “graveyard” list of retired rules and why they failed, so they don’t sneak back in.
- Quarterly reset: revalidate core setups against current volatility and regime distribution.
Codify Your Playbook: Mechanics Over Prediction, Every Single Trade
Etienne Crete pushes traders to stop guessing and start running a written playbook like clockwork. He wants your edge defined in plain language so you can execute under pressure without second-guessing. That means spelling out the exact setup, trigger, stop, and exit logic before the session starts. If it isn’t on the page, it doesn’t get traded.
He also insists on separating process from outcomes, so you judge yourself by execution, not random P&L noise. Track the routine the same way you track price: scan, bias, setup, trigger, manage, review. When a trade appears, you follow the mechanical checklist and let the probabilities do the heavy lifting. Prediction becomes optional; disciplined mechanics become the whole game.
Risk Small Per Trade, Expand Size Only When Volatility Shrinks
Etienne Crete is blunt about survival: keep your per-trade risk tiny so a bad streak can’t knock you out. He suggests anchoring size to recent volatility so your stop makes sense in the current market, not last month’s. When ATR widens, your position should shrink; when ATR contracts, you can carefully nudge size up. The point isn’t to be timid—it’s to stay in the game long enough for the edge to show.
Etienne also stresses consistency over hero shots. Decide your baseline risk in percent, compute size from stop distance, and stick to it until the data justifies a change. Only scale when market noise is lower and your execution has been clean, not because you “feel confident.” In other words, let volatility and process call the plays, not emotions. That’s how small risk compounds and big mistakes stay small.
Diversify By Underlying, Strategy, And Trade Duration To Smooth Equity
Etienne Crete treats diversification as a practical way to stop one market regime from owning your P&L. Spread your ideas across uncorrelated underlyings—think a couple of FX majors, one index future, and a commodity—so a single theme can’t wreck the week. Use a correlation cap: if two markets move together too tightly, cut one or halve both. When two instruments are highly synced, treat them as the same idea to avoid hidden overexposure.
Diversify by strategy as well: keep a trend pullback, a breakout, and a range mean-reversion in the toolkit so at least one setup fits the current environment. Add duration diversification by running an intraday play, a 1–3 day swing, and the occasional multi-week position to catch different volatility cycles. Allocate fixed risk units across these dimensions and rebalance weekly based on what’s actually paying, not on hunches. Review correlations monthly and cull overlapping trades so the equity curve stays smoother and more resilient.
Use Defined Risk Setups; Avoid Undefined Risk Without Firm Hedging Rules
Etienne Crete wants every trade framed with defined risk before you click. That means your stop lives beyond the true invalidation level, not where it “feels” comfy. Your position size is computed from that stop distance, so a loss is pre-capped and survivable. If you use instruments with built-in asymmetry, choose structures that cap downside—think debit spreads or futures with hard stops. Defined risk keeps you decisive and prevents the slow bleed that kills confidence.
He warns that undefined risk—averaging down, selling naked options, martingales—requires a separate hedging playbook, or it’s a ticking bomb. If you insist on it, you must pair it with strict hedges, max loss per day, and a circuit breaker that shuts you down automatically. Better yet, keep your core playbook to defined-risk setups and reserve experimentation for tiny size and strict time limits. The rule is simple in Etienne’s book: predefine where you’re wrong, never widen the stop, and let disciplined sizing turn small losses into tuition, not disasters.
Preplan Entries, Exits, And Reviews To Enforce Process Discipline
Etienne Crete wants the whole trade written before it exists: setup, trigger, stop, targets, and management rules. When the market is live, you execute the script, not your feelings. Define the exact candle, level, or retest that qualifies as a green light and ignore everything else. If the trigger doesn’t print, the trade never happened, and your focus moves on.
He also anchors performance with structured reviews. After each session, record the plan-versus-execution, tag errors, and screenshot the key moments so tomorrow’s decisions get cleaner. Weekly, rank setups by expectancy and cut the bottom tier until they prove themselves again. This loop—plan, execute, review—creates discipline on autopilot and keeps Etienne’s process sharp even when markets change.
In the end, Etienne Crete’s message is refreshingly simple: trade a complete strategy, not isolated signals. He hammers home the trio—signal, entry, exit—and makes you define each one before you put it at risk. That framing forces you to stop chasing candles and start executing plans. Pair it with market-phase awareness, and you’ve got a backbone: identify if price is trending or sideways, then run the fitting playbook instead of trying to make one setup work everywhere. When the phase shifts, your plan shifts—no debate, no hope.
Etienne also elevates exits from an afterthought to a profit engine. Your stop belongs at true invalidation, your target logic is prewritten, and your job is to sustain winners long enough for the edge to pay. That discipline blends with small, volatility-aware sizing so drawdowns stay survivable and confidence stays intact. Zooming out to the big picture—key levels, swings, and the broader phase—helps you avoid premature exits and “middle of nowhere” entries. Put it all together and the lesson is clear: codify the process, match tactics to the environment, cap downside, let upside breathe, and review relentlessly until the playbook runs itself.
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