OVERNIGHT EDGE.

  • INSTRUMENTS TRADED: S&P 500 & Nasdaq 100. Implemented using ETFs. Subscriber can choose which ETFs to trade based on return/risk preference (see table below).
  • TRADING FREQUENCY: Signals generated daily approximately 15 minutes prior to market close. Positions are entered near 4pm New York time and exited Market-On-Open at 9:30am New York time.

CONCEPT

OVERNIGHT EDGE is a short term strategy that trades long and inverse S&P 500 and Nasdaq 100 ETFs in the overnight session (enter at market close, exit following day at market open). The strategy focuses on this timeframe due to several unique overnight edges and driving factors that are not present during the day session. Some factors include:

  • Overnight reaction to changes in trailing stock market volume and breadth
  • Overnight reaction to intraday upside/downside volatility in prior day session
  • Effect of external shocks such as government economic releases

The strategy is long/short and takes positions in long exposure and inverse exposure ETFs. It can only be invested in one asset at a time - either S&P 500 or Nasdaq 100. Subscribers can choose which ETFs to trade based on their return/risk preference:

RETURN/RISK S&P 500 ETF Nasdaq 100 ETF
OvernightEdge Plus UPRO/SPXU (3X / -3X) TQQQ/SQQQ (3X / -3X)
OvernightEdge Moderate (2/3 ret. & 2/3 risk of 'Plus') SSO/SDS (2X / -2X) QLD/QID (2X / -2X)
OvernightEdge Conservative (1/3 ret. & 1/3 risk of 'Plus') SPY/SH (1X / -1X) QQQ/PSQ (1X / -1X)


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