Summary

The SPENCER PROGRAM employs two trading strategies: (1) Breakout strategy in the EUR/USD. Looks for entries long above an identified range through resistance and short below range through support. This strategy usually gets trades during the London session when we see breakouts. Uses a very tight stop loss of between 20-60 pips depending on the daily range. Look to let profits run on this strategy and add new positions if the breakout continues. This allows for easing into the position in case a false breakout occurs and reverses immediately so we don't get hurt badly. This strategy has about a 1:2.5 risk/reward ratio. 2) Trades the GBP/USD and EUR/USD and looks for entries on pullbacks always trading with the overall trend. This is a short term scalping strategy. Profit targets are from 20-30 pips. The trade is closed early if it doesn't develop to reduce exposure to the market. The hard stop loss is 100-120 pips but is rarely hit as trades can be closed at a much smaller loss depending on time exposure.