There is an article back from 2018 that says that most gains for $SPY happen overnight stating that you could have done overnight hold since 1993 and be more profitable than running the same by marker hours.
I thought why not to review this thesis in a bit more detailed way. I set a simple backtest that is not going back to 1993 but rather just to Jan 1, 2010, holds overnight and sells in the morning.
The Setup
I thought why not to review this thesis in a bit more detailed way. I set a simple backtest that is not going back to 1993 but rather just to Jan 1, 2010, holds overnight and sells in the morning.
The Setup
- $10,000 to trade daily (nightly actually)
- Trading only $SPY
- Buy at 3:59 using a market order
- Sell at 9:30, 9:31, 9:32, 9:33, 9:34, 9:35 (let's see which one does better) using a market order
- Do not trade on early close days
![](https://preview.redd.it/hnkgjkb0jlg81.png?width=2468&format=png&auto=webp&s=aa942219dcd8b094e0e6d953d4a6b4a646b507ac)
Strategy setup
The Results![](https://preview.redd.it/dgxff1z4jlg81.png?width=1220&format=png&auto=webp&s=3fe0c414fdccd5db3615c6e501871a8438dfe5f4)
Cumulative gain since Jan 1, 2010
![](https://preview.redd.it/6thwzrj8jlg81.png?width=1864&format=png&auto=webp&s=8eb4cda196305b3b4fc3430c737b9f80ba3e77d1)
Gain by year
Disclaimer: This post is for fun and educational purposes only with no attempt to beat buy and hold. Do not use this is trading/investment advice.