Overnight Trading Strategy (+Backtest) | NIGHT TRADING

In this video, we will show you how to make money overnight with the Overnight Trading Strategy in SPY, which tracks the S&P 500. An overnight trading strategy is invested from the close until the open or close the next trading day, making it a great way to make passive income.

Our strategy involves buying the close if today is the third lower close in a row and selling at the open the next day. Since 1993, this strategy has made 643 trades with an average gain of 0.13% per trade and a win rate of 65%. The max drawdown is 8%.

Some may argue that the gains are too small to trade, but with SPY trading at $400, this is more than enough to offset slippage and commissions.

If you exit at the close the next day, you can increase the average gain per trade to 0.24%. However, the win rate drops to 60%, and the max drawdown doubles to 17%.

At our website, you can find plenty of similar ideas to improve your trading strategy. We are trading a variant of this strategy ourselves, where the average gain is 0.35% per trade, but with a reduced number of trades.

Overnight trading strategies like this are very tradable, and we hope this video helps you make more informed trading decisions. Don't forget to like, comment, and subscribe to our channel for more trading strategies and insights.

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You can read more about it here:
https://www.quantifiedstrategies.com/overnight-trading

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