The 5-Day Low Overnight Trading Strategy Explained(S&P 500 Overnight)

This article looks at the performance of the overnight session when the S&P 500 opens at a 5-day low but at the same time, the close is higher than the open.

Here is the testable trading strategy in plain English:

1. SPY must open at a 5 day low.

2. The close must be higher than the open.

3. If 1 and 2 are true, then enter on the close.

4. Exit tomorrow’s open.

The profit curve is shown below.

You can find more info about this trading strategy here:
https://www.quantifiedstrategies.com/5-day-low-overnight-trading-strategy/