#1) Moving Average BreakOut
This is a very simple, effective and widey used spreadbetting strategy. Many professionals and non-professionals use the the Moving average to identify the trend of the trade, or direction to spreadbet.
Entry Rules:When the candlestick of the time frame you are trading closes above the Moving Average, You can take a long position in your online spread betting account.
If instead the candlestick of the time frame you are trading closes below the MA, take a short position in your online spreadbetting account.
Exit Rules: You can use your money monangement rules, that is placing a stoploss at a certain % loss of your accounts or once the trade has turned around a certain number of points. This is you discreation.
Others wait for a sell signal to change the position around. This will always keep you in the market. When the market is not trending you could suffer a lot of turn arounds.
Professional traders use Moving Average Breakout strategy to help them determine the trend. If the trading occurs above the Moving average. They prefer spread trading to the long side, and vice-versa. The most common and widely used Moving averages are the 200 MA, 100AM, 55 MA and 25 MA.
Advantages: You Spread trade with the trend. Going against the trend could put you in difficulty.
Disadvantages: The moving average is a lagging indicator, and it can put you late into a trend.
Spread betting Examples
25MAis on GBP/USD Daily & 1hr on DAX and WTI Crude
