The setup starts with the stacking ball (you can see the divot on the top of the blue ball in this picture) near the side pocket. I put it a half ball width from the pocket cut. Align the 1 ball to the short rail point of the corner pocket to compensate for throw, and then balance another ball on top of the stacker.

The pool cue setup is not trivial since it will slide when the cue ball hits it. The amount it slides depends on where the cue ball contacts it and how fast it's going. I like to put the shaft across the center of the side pocket and point the butt at the 1 ball. In competition, the butt has to be at least 4 ball widths away.

I like to put the cue ball three ball widths from the rail, against the 3rd diamond. Aim for just less than a 1/2 ball hit on the stacking ball with a 1/2 tip top and a 1/2 tip left. Medium speed is all you really need. If the cue stick gets pushed too far, aim a little thicker or hit is a little slower. You can also adjust the initial starting point of the cue.