Overnight Star - A trading strategy in SPY and ES (Since 1998)
@ES(.D) & SPY
Profit Factor: 2,7
Avg Trade: $175
Winning Trades: 67%
A Closer Look into the trading strategy
This trading strategy makes use of a unique time pattern to detect when the market has strayed away too far from its average. In fact, this tendency is only visible during the short time that the time pattern is active.
Looking at the profit factor we also see that we have some healthy margin, with a value residing around the three-mark. In markets, with an upwards bias we generally want a higher profit factor, to be really sure that we are observing a real edge. And as you see, this is the case here!