How to Cash In on After-Hours and Premarket Trading

Are any traders working this angle?



How to trade After-hours and premarket techniques
https://www.dogpile.com/serp?q=How+to+trade+After-hours+and+premarket+techniques

 

How (in)efficient is after-hours trading?

• A. Raudys, Esther Mohr, G. Schmidt
• Published 16 April 2013
• Economics
• 2013 IEEE Conference on Computational Intelligence for Financial Engineering & Economics (CIFEr)

In this paper we analyze US stock market after-hours trading. This is a trading outside the regular trading hours of 09:30-16:00. During this time the market is thinly traded and the possibility of price (in)efficiency arises. Price spikes up or down sometimes reaching several percent can be observed. This pattern can be exploited by a simple automated trading strategy that buys low if market drops and closes the position high on the next day when the market reopens. An empirical study using the most liquid stocks and exchange traded funds listed in NASDAQ and NYSE exchanges for the years 2000 to 2012 is conducted. We create a portfolio of ~400 automated trading strategies. The average portfolio performance is a 23 percent per annum with a Sharpe ratio of 4. This shows that prices are inefficient during after-hours trading in the US stock market. To test for significance we run an out-of-sample test from 2012 onwards.

https://ieeexplore.ieee.org/document/6611693

 

Why are you trading stocks on sierrachart and not on IB´s Tws? I´m still evaluating if third party products for IB are better than TWS itself. I tested Sierrachart, Motivewave, Medvedtrader and Tradingview.

 

I've been definitely considering making a separate algo for after hours.

 

You'd need a lot of money and brass balls.

 

To do what exactly?

 

to play there where big boyz play...

 

Wow tough guy Internet talk. Never seen that before.

 

for thick ETF's, one would be able to get his order filled, sometimes, market maker would make you to pay up for those large order like 10K (he'd keep raising the bid to make you chase it), but if one breaks the order into two 5K orders, then one 'd be able to get in on the bid price.

for thinly traded ETF's, your order won't be filled immediately, market maker d give some odd lot shares, it'd take hours in afterhours for your order to get filled. sometimes, only 1/5 of the order is filled.
I think if you have IRA account with Fidelity, they won't let you trade afterhours. (at least for my case).
not sure about the cash account, ...