I was playing with some goofy ideas from the net and I ran across this little anomaly:
Buying SPY 5 minutes before close and selling it 5 minutes after open every day yields almost all the returns, but avoids half the drawdown during major crashes. In other words: For the period tested (2006 - 11/2015) most of SPY's gains are at night, and most of it's major crashes happen during market hours.
Strangely, the same doesn't hold true for DIA or QQQ.
A use case for Robinhood-Quantopian, since there are no commissions? I guess the problem would be the T+3 settlement?
T+3 settlement issue can be solved with robinhood instant but can this trigger patter day trading (PDT)? PDT can be an issue if robinhood account value is less than 25K.
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