I don't particularly care for the name, but that's probably due to a negative association. I do like that it comes from an era of names that aren't really used right now, so by the time your child comes of age it may seem very fresh. I don't think that era of names is due for a revival any time soon, so you won't have to worry about there being 4 other Traceys in her class at school.
If you don't like
Tracey, you could try using part of the name --
Trace, Tralena, Tracinda, Trava (Czech, "spring grasses") -- or using it as MN. Or you could use
Teresa or
Theresa, which is where
Tracey comes from in the first place. I knew a girl in elementary school called Tressie, a family NN for
Teresa. It's similar to
Tracey, but less common.
Hope this helps!
M.