4 Overnight Trading Strategies In The S&P 500 in 2024 (Night Strategies From Close To Open)

The overnight edge in the stock market is well documented:

By using the tailwind from the close until the next open, you can develop some good short-term trading strategies. In this article, I present 4 overnight trading strategies in the S&P 500. The strategies buy at the close and sell the next day’s open. Because the holding period is short, the drawdowns are also small.

(The strategies in this article were written in 2012. The test period is from October 2005 until 2012. We have an updated version of this article on our Substack service that includes the logic in plain English. Alternatively, you can buy the code for ALL our free strategies)

Table of contents:

Overnight trading strategy number one:

The first strategy buys when it makes a new n-day low and has an additional two variables. We go long at the close and exit at the open the next day.

P/L in %	#trades	#wins	Avg.
8.4	35	29	0.24

The criteria about the close must be above the 20