Ever tried using overnight futures and buying market open?

Like this...

See what the ES futures did between when aftermarket closes and before premarket opens.

Then buy a leveraged fund in the same direction for that day.

Do you think that would work >50% of the time?

 

No

 

I have a better one: After the close go the opposite in futures than what the market did that day.

Since March 1st (16 trading days) there were only 2 consecutive same colored days. Otherwise it is just green,red,green,red,etc. That is 1 in 8, so this would work 78% of the time.

 

Since March 1st!? Not a big enough N. Backtest this simple strategy from 1960 and report back on percent up and down days. Then let us know if it would be positive expectancy. I seriously doubt that this simple strategy is viable.

 

His point is since the crisis started not that the market generally does this all the time

 

I find it a bit risky to do.

 

Trading is risky, but last night you would have made good money, again.

 

Well... with quite a draw down in futures - went up a lot

 

True, but worked just fine last night with very little heat.

I am not saying this will work forever, but in the current volatile but undecided environment, fading the last move is a winner.