Small overnight edges in EEM
Here’s a trade idea
Go long EEM at the close and sell at next day’s open if:
- Today’s close is at least 1% below 10 day simple moving average
- Previous overnight gain is less than 1%
Below is an equity curve assuming $100K per trade and no commissions or slippage.
And some stats…
I’ve attached an Excel file that allows you to adjust the parameters to see how performance changes as a result. Change cells N3 and N4 to try out different combos. Data is from Yahoo finance.
Download file here –> EEM Overnight Trade
This strategy works to a degree on other indexes but not nearly as good from my tests so far.