Last Updated on 14 March, 2021 by Samuelsson
Catching Night Swings With IBS
Catching Swings at night is a great way of diversifying your portfolio. In this edge, we catch night swings in the SPY that tracks the S&P.
A Closer Look
As can be seen in the infobox above, this edge trades the S&P 500 through the SPY. However, it should work well on other securities that track the same index as well.
The edge is composed of:
- An Oscillator
- A Market Regime Filter
Why Care For Night Edges?
New traders normally find daytrading to be the most alluring trading form. However, there are other trading forms that are easier while still holding great profit potential.
One form of strategies that is often overlooked, is strategies that trade only during the night. That is strange, considering how profits have been distributed historically. Actually, if you would have held the S&P 500 from open to close every day 20 years back, you had been pretty much breakeven. Instead, if you would have bought on the close and sold on the open, you had profited as you would expect from a rising index market.
Most of the returns of investments in the stock markets are made during the night. That’s why night strategies should be part of every trader’s portfolio.You need to be a Silver member to have access to this post.
Below the rules of this very edge are defined for you to replicate in your own testing;You need to be a Silver member to have access to this post.