Gold Trading Strategy: Overnight & Night Trading – Video, Rules, Backtest

As with the S&P 500 index, gold also shows an overnight bias — the tendency for the gains to accrue during the night. As such, night trading and overnight trading strategies in gold or the gold miners ETF can be potentially profitable. But what exactly is the gold overnight trading strategy?

The Gold trading strategy (Overnight) is a trading strategy that is used to take advantage of the overnight price movements in the gold market. The strategy involves buying gold futures contracts or the gold miners ETF at the close of the market and selling them the next day at the open.

In this post, we look at the gold overnight trading strategy. We end the article with a backtest.

Understanding the Basics of the Gold Overnight Trading Strategy

The Gold Overnight strategy is a trading strategy that is used to take advantage of the overnight price movements in the gold market. The strategy involves buying gold futures contracts (or GLD) or the gold miners ETF (GDX or GDXJ) at the close of the market and selling them the next day at the open.

The idea behind the strategy is to capture the price differential that occurs overni