A strategy gives you a repeatable framework for making trading decisions. Without one, you are gambling. Here are five strategies that UK spread bettors are using successfully in 2026. Use our spread calculator to model costs before testing any of these.
1. Trend Following
The most reliable strategy over time. You identify the direction of the trend and trade with it, never against.
Entry: Price above the 50-period moving average AND the 20-period MA is above the 50-period MA. Buy.
Exit: Price closes below the 20-period MA, or your trailing stop is hit.
Best markets: Forex pairs, indices, commodities. Avoid ranging markets.
Risk: Choppy markets generate false signals. Use a filter like ADX above 25 to confirm a trend exists. See our chart reading guide for how to identify trends visually.
2. Breakout Trading
Trade the initial move when price breaks out of a defined range, support, or resistance level.
Entry: Price breaks above a key resistance level on above-average volume. Buy.
Exit: Fixed take-profit at 2x the risk distance, or trailing stop.
Best markets: Individual shares, indices around earnings or data releases.
Risk: False breakouts are common. Wait for a candle close above the level before entering, and always use a stop below the breakout zone.
3. Range Trading
In quiet markets, price often bounces between defined support and resistance levels.
Entry: Buy at support, sell at resistance. Look for candlestick confirmation (e.g. hammer, engulfing pattern).
Exit: Take profit at the opposite boundary of the range.
Best markets: Forex pairs during Asian session, indices in low-volatility periods.
Risk: The range will eventually break. Set stops just beyond the range boundaries and accept the occasional breakout loss.
4. News Trading
Economic data releases create sharp moves that can be traded.
Entry: Wait for a major data release (NFP, CPI, BoE rate decision). If the data surprises significantly vs consensus, trade the initial direction.
Exit: Quick take-profit within 15-30 minutes, or a tight stop.
Best markets: Forex (GBP for BoE, USD for Fed), indices.
Risk: Spreads widen dramatically around data releases. Use a guaranteed stop loss. Slippage can be severe.
5. Mean Reversion
Markets that have moved too far too fast tend to snap back.
Entry: RSI below 30 (oversold) on a daily chart. Buy with a stop below the recent low.
Exit: RSI returns above 50, or take profit at the 20-period moving average.
Best markets: Large-cap shares, major indices.
Risk: Markets can stay oversold for extended periods, especially during genuine bear markets. Use this strategy cautiously during broad market selloffs.
The Common Thread
Every successful strategy has defined entry rules, exit rules, and risk management. The specific strategy matters less than the discipline to follow it consistently. Start with one strategy, master it, and expand from there.
Between 51-82% of retail investor accounts lose money when spread betting. No strategy guarantees profits.
