This journal is going to be quiet for a couple of months from now on after this post.

I had a good day yesterday and hoping to leave on a high note. It is not to be. I have a history of mediocre to terrible day after a spectacular day and this is likely because of my expectation of another trend day after a big trend day. i.e. recency bias.

Stats were bullish and I was long but I couldn't execute my bias well. This was mostly due to my attempt to scale-in without booking my partial profits. My hard-stop, which I don't use very often, cost me yesterday with wild swings. It's a messy looking entries & exits as it's just ONE big trade.

Though I lost less than half of what I made the previous day, the pain is equal to the pleasure of gain.

Daniel Kahneman is spot on.

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Sleeping night owl strategy in 2025.

I have been working on this pet project of mine for quite sometime now and it's ready for execution.

It's a simple strategy. Too simple actually but very effective.

I enter my trade @ market close and cover it @ RTH open. Essentially, I am holding position overnight and literally paying for the gap risk (or payoffs).

I have done extensive backtesting and it's clearly a profitable strategy in the past but forward testing is going to be a different beast. Let's see. I think Linda Raschke mentioned something similar to this strategy but I couldn't find any info in the web.

I am planning to test this strategy in the next 5 weeks when I'm a busy with my regular job. It literally takes less than 2 mins just before RTH close to check the criteria for long/short trade. I place the trade in my phone and that's it. My goal is to NOT check the market even once after I enter the trade. Since I'm executing this with SPY and not MES, I stay out of the trade during ETH

Mark Douglas' famous quote 'There is nothing to think about. Just place the trade'.

Anyone who is skeptical, just think about this. S&P500 gained more than 24% in 2024. If you were long only during the RTH, you would have lost 4%. Overnight moves were the main reason for a stellar 2024.