8 Night Strategies Trading (Overnight Trading Strategies + Video)

Since 1993, all the gains in the S&P 500 have come from owning the index from the close to the open the next day. We see the same tendency in the gold markets. Thus, we can develop night trading strategies to take advantage of this bias. At the end of the article, we update the results of an overnight trading strategy we published in 2014.

Night and overnight trading strategies


Overnight stock trading strategies are popular for a good reason: they offer good risk and reward. All markets are different and have their own seasonalities and tendencies, but in the stock market, the tendency is for the gains to accrue during the night – ie. an overnight bias. This means that night trading and overnight trading strategies in stocks get a boost from this effect/bias.

Here you can find more than 200 trading strategies similar to the above strategies.

What is night trading?

By night trading we mean holding positions overnight – from the close of the trading day until the open the next day. In other words, night trading is the same as overnight trading.

Let’s give you an example:

The official market hours for the stock market are 0930 to 1600 Eastern US time. Thus, night trading owns the “stock market” from 1600 until 0930 the next day.

In this article, we refer to the stock market as the S&P 500 or Nasdaq.

Overnight Trading Strategy (+Backtest) | NIGHT TRADING video

Night trading and overnight trading is not after-hours trading

After-hours trading is when you buy and sell between the official market hours.

Overnight trading is not like that. You place orders at the close or just seconds before the close. You sell at the open the next day or put in a limit or market order at or very near the opening bell.

Why night trade?