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Ali Crooks— a 22-year trading veteran—joins the Words of Wisdom podcast to unpack the real journey behind longevity in the markets. From early options missteps to a measured approach across FX, indices, and oil, Ali explains how mentorship, deliberate practice, and ruthless record-keeping shaped his edge. Why listen? Because he’s been through multiple cycles, built resilience the hard way, and shows exactly how to move from “chasing wins” to running a professional process.
In this piece, you’ll learn how Ali structures a trader’s day around data—why journaling, backtesting, and understanding your strategy’s typical losing streaks calm decision-making when it matters. You’ll see how expanding your time horizon (from “today’s P&L” to quarterly and yearly metrics), keeping a six-month living buffer, and avoiding strategy-hopping help you trade with steadier psychology and cleaner risk. It’s a practical roadmap for newer traders who want results without the burnout.
Ali Crooks Playbook & Strategy: How He Actually Trades
Core Philosophy: Professional Process Over Hot Takes
Ali trades like a pro athlete—repeatable routines, clear play calls, and zero romance about any single trade. The edge comes from knowing his numbers and sticking to them when the market gets loud.
- Trade only defined playbooks; no “vibes” trades—ever.
- Risk a fixed at 0.25%–0.5% per idea; never more than 1R on initial risk.
- Weekly target: positive R, not dollars. If R is green, the week is a win.
- Avoid strategy-hopping: review results quarterly, not daily.
- One market = one plan. If the plan’s unclear, skip it without debate.
Daily Routine & Prep: Win the Day Before the Open
He preps so execution feels boring. The goal is to remove surprises and spend decision-making energy only on A+ moments.
- Pre-market (30–45 min): mark HTF levels (weekly/daily), session highs/lows, and trend context.
- Define “if–then” scenarios for both directions before the bell.
- Set alerts at levels; no constant chart staring.
- Write a one-sentence trading intention: “Only take A-setups with clean risk.”
- Confirm news windows; flatten 2 min before high-impact releases unless it’s a news strategy.
Playbook Setups: A, B, and Pass
Ali tiers setups to protect focus. You don’t need more trades—just better ones.
- A-Setups (trade): trend pullback into HTF level + fresh momentum confirmation; minimum 1:2 projected R.
- B-Setups (consider): structure is good, but momentum is mixed; half size or pass.
- Pass: overlapping chop, unclear trend, or news drift—no exceptions.
- Predefine invalidation: the candle/level that proves the idea wrong.
- If you can’t explain the setup in one sentence, it’s not a setup.
Entries: Precision Without Perfectionism
He times entries where risk is smallest and the narrative is clean. No chasing.
- Enter at the level, not “near” it; use limit orders at pre-marked zones.
- Require fresh impulse (break of minor structure or velocity burst) to confirm.
- If price runs away, let it go; missed trades don’t get a second chance.
- One retry max if the level holds and context is unchanged.
- Never add to a loser; scaling is for winners only.
Stops & Targets: Math First, Ego Last
Stops live where the idea is invalid, never where it “feels” okay. Targets are based on structure, not hope.
- Initial stop: beyond the level that, if tagged, disproves the thesis.
- First target at 1:1 to pay yourself if volatility is average; otherwise, 1:1.5.
- Trail behind the structure only after partials are booked; don’t outrun the play.
- If ATR compresses, tighten expectations; if ATR expands, widen targets—keep R intact.
- Hard daily max loss (e.g., −1.5R); hit it, shut it.
Risk & Sizing: Stay Dangerous, Not Reckless
Ali sizes so a losing streak is emotionally and financially survivable. That’s how he stays in the game for decades.
- Position size = account × risk% ÷ stop distance (in ticks/pips/points).
- Cap total open risk at 1R across all positions.
- No more than two correlated instruments at once.
- After 3R on the week, cut the size by 50% until back to break-even.
- Add size only after two consecutive green weeks with clean execution notes.
Trade Management: Scale With Structure
Scaling in is earned by structure, not by “confidence.” Scaling out protects the equity curve.
- Scale in only after the first partial is banked and structure advances in your favor.
- Keep average price honest—never average down.
- Move stop to breakeven only after the market proves it (e.g., HH/HL sequence).
- If momentum dies at a key opposing level, exit remainder—no negotiation.
- Use time stops: if the idea hasn’t moved in two sessions, flatten.
Data & Journaling: The Real Edge
Ali treats data like oxygen. Journaling turns random trades into a measurable business.
- Journal fields: date/time, instrument, setup tag (A/B), entry/stop/target, R planned, R realized, screenshots (before/after), emotions (1–5), rule score (1–5), mistakes.
- Weekly review: win rate, avg R, max adverse excursion, time-in-trade, and which setup carried the week.
- Track losing-streak distribution; know your worst six-month sequence.
- Build a “Mistake Tax” chart—how many R lost to rule breaks; aim to cut it in half next month.
- Promote or retire setups based on 50+ sample outcomes, not anecdotes.
Drawdown Protocol: Automatic, Not Emotional
When equity dips, Ali shifts into preservation mode. The rules are prewritten to protect confidence and capital.
- At −5R from equity high: size −50%, A-setups only.
- At −8R: trade 3 days/week max; review journal before each session.
- At −10R: pause for 5 trading days; run sim/backtest, refine one setup.
- If a green week exists, the protocol; otherwise, continue until two green weeks.
- No discretionary overrides—ever.
Markets & Timeframes: Fewer, Better
He focuses on a small roster, so pattern recognition stays sharp. Depth beats breadth.
- Primary instruments: one FX pair or index future, plus one secondary.
- HTF bias from daily/4H; execution on 1H/15m; confirmations on 5m only if needed.
- If HTF and LTF disagree, skip or trade smaller.
- Volatility filter: if realized ATR < 20th percentile for the month, reduce targets or stand down.
- One session per day; no revenge sessions.
News & Volatility Windows: Respect the Spike
He doesn’t fear news; he respects it. The goal is to avoid accidental coin flips.
- Flatten 2 minutes before tier-1 events unless running a specific news strategy.
- For post-news trades, wait for the first pullback after structure reforms.
- Double-check spreads/slippage on FX around news; widen stops accordingly if trading.
- Avoid initiating positions late Friday—gap risk is real.
- If VIX (or your chosen vol proxy) explodes, cut size until structure normalizes.
Capital & Lifestyle: Build a Buffer, Trade Cleaner
Money stress ruins decision-making. Ali keeps living costs and account risk separate.
- Maintain a 6–12 month living-expense buffer outside the trading account.
- Withdrawals are quarterly and formulaic (e.g., 30% of profits if account > high-water mark).
- Keep prop accounts and personal accounts on the same rules to avoid “double standards.”
- Taxes, fees, data, and platforms are budgeted upfront—no surprises.
- Sleep, hydration, and training logs sit next to P&L in the weekly review.
Mindset & Execution: Boring Wins
The goal is not excitement; it’s reliability. He treats each trade as a small business decision.
- One-page rules visible during the session; check them before any click.
- 3-strike system for mistakes: warning → half size → session off.
- Post-trade: 60-second debrief—what rule created the result?
- Celebrate rule-following, not P&L; reinforce the behavior you want repeated.
- End-of-day reset ritual: mark levels, set alerts, shut it down.
Risk First, Returns Second: Size Positions to Survive Every Losing Streak
Ali Crooks keeps the scoreboard in risk, not dollars, because staying alive beats swinging for home runs. He builds every trade from the stop outward, then backs into size, so one hit never dents the account. Losing streaks are expected, not feared, because the risk per trade is small enough that ten losers in a row are survivable. That mindset lets him trade calmly when others press the panic button.
His playbook starts with fixed fractional risk and clear invalidation, then measures results in R, so emotions don’t hijack decisions. He caps total daily and weekly drawdown, shuts it down when limits are hit, and reviews execution instead of chasing it back. By treating volatility honestly—wider stops, smaller size; tighter stops, normal size—Ali Crooks preserves edge across regimes. The outcome is simple: live to take the next A-setup, compound steadily, and let risk control make the returns possible.
Volatility Sets the Bet: Dynamic Risk When Hot, Fixed Risk When Not
Ali Crooks treats volatility like a thermostat for risk—he dials position size to the environment, not his mood. When ATR or range expansion is in the top quartile, he cuts size and widens stops so one candle can’t erase a week. In quiet markets, he keeps size fixed and targets modest, high-probability moves rather than forcing stretch goals. He avoids impulse trades during the first minutes after a major news shock, letting spreads normalize and structure re-form.
Ali Crooks defines “hot” and “cold” using simple, repeatable metrics—ATR percentiles, average true range compared to the past 20 sessions, and session range versus the 30-day mean. If volatility compresses, he takes partial profits sooner and accepts fewer trades; if it expands, he requires stronger momentum confirmation before entry. Targets and stop distances scale with volatility, but R stays constant, so the math stays honest. The result is a smoother equity curve that survives wild days and grinds higher when the tape is sleepy.
Trade Fewer, Better: A-Setups Only, Clear Invalidation, Preplanned Targets
Ali Crooks filters hard, so only A-setups make it onto the field. He wants a clean confluence—higher-timeframe level, directional bias, and fresh momentum—before he even considers clicking. If the narrative can’t be summarized in one sentence, he passes without debate. Every trade has a written invalidation level that proves the idea wrong, not a “comfortable” stop that invites tinkering.
Ali Crooks also preplans exits, so there’s no haggling with the tape mid-trade. Targets map to structure first, then to a minimum reward-to-risk that keeps the play worth running. If conditions slip to B-quality—mixed momentum, overlapping ranges—he halves the size or stands down. Fewer trades, higher average R, and a quieter mind create the space to execute like a pro.
Mechanics Over Predictions: If-Then Playbooks, Data-Driven Entries, No Chasing
Ali Crooks builds trades from mechanics, not forecasts. He writes simple if–then statements—“If price reclaims the daily level and holds on a retest, then enter with stop below structure”—so execution becomes a checklist. That turns analysis into repeatable action and kills the urge to guess where the market “should” go. Entries are only taken when pre-defined criteria light up; if they don’t, he does nothing.
Ali Crooks also bans chasing by committing to level-based limits and a one-retry maximum when the setup remains intact. He tags each trade with a setup code, logs the metrics, and reviews which mechanics actually pay so the playbook evolves with proof. Mid-trade decisions follow rules, too: partial at 1R or at the next structure, trail behind higher lows/lower highs, and flatten when momentum stalls at an opposing level. The result is a calm, rules-first workflow where outcomes vary, but behavior never does.
Diversify Smart: Separate Accounts, Uncorrelated Strategies, Mixed Timeframes for Balance
Ali Crooks spreads risk across what actually matters—different edges, instruments, and holding periods—not just more tickers. He prefers separate accounts for distinct strategies so one drawdown can’t contaminate the rest, and he caps correlation by avoiding overlapping bets on the same macro driver. The idea is simple: when one playbook is cooling off, another is heating up, and the total equity curve keeps walking higher.
Ali Crooks implements this with clear buckets: one trend-following system, one mean-reversion system, and a discretionary level-based play—each with its own risk, sizing, and review cycle. He mixes timeframes (daily/4H swing with 1H/15m execution) so the same headline doesn’t move every position the same way. Per-bucket max exposure, instrument caps, and a weekly rebalancing rule prevent drift toward unintended concentration. If correlation spikes or two strategies start duplicating signals, he parks one until the data proves it’s truly adding diversification again.
In the end, Ali Crooks leaves you with a simple, durable blueprint: treat trading like a professional sport where process beats prediction. He sizes from the stop outward, measures everything in R, and writes if–then rules so decisions are made before the heat of the moment. Volatility isn’t a mood shifter; it’s a setting—he widens stops and cuts size when the tape runs hot, trims targets and stays selective when it’s cold. He preps levels, sets alerts, respects tier-1 news windows, and won’t chase price once a move is gone. The work is front-loaded, so execution can be boring.
Equally important, Ali Crooks builds a business around his edge. Separate accounts, uncorrelated strategies, and mixed timeframes keep the equity curve steadier than any single “killer trade.” A strict drawdown protocol and a living-expense buffer protect confidence when variance bites. Every trade is journaled—setup tag, before/after screenshots, rule score, mistake tax—so quarterly reviews promote what pays and retire what doesn’t. If you copy nothing else, copy his discipline: fewer A-setups, fixed fractional risk, volatility-aware sizing, and a routine you can repeat on your worst day. That’s how you stay in the game long enough for skill and compounding to do their work.
