The Gift of Multi-strategy Trading

Corona Del Mar, CA

Howdy Ellen!

Warning: Once you see this stat, you can't unsee it.

It turns out that nearly all the gains in the stock market occur during the after hours…

…when the stock market is closed.

In fact, major indices like the S&P 500 hardly makes a dime from 9:30AM to 4PM during normal hours.

The numbers below are from buying the close…let's say on Monday…then selling the open the next day…such as Tuesday morning.

Buying the close Friday and selling Monday morning is typically negative for stocks.

Isn't that bizarre?

But wait, it gets weirder — the same phenomena occurs in gold and crypto.

The only difference is that buying Friday at the close and selling Monday's open is slightly positive.

The best (and simplest) explanation of this anomaly is that you get paid to take on overnight risk. But even that explanation falls apart since stock returns are negative from Friday to Monday on average.

Let's get into even more spooky action: Dark pool short selling.

I decided to experiment with a long/inverse Bitcoin strategy since we have about 3.5 years of history in the BITI inverse ETF.

I struck out using normal indicators and TAP data (ETF mispricing).

But hit pay dirt using short sale data from dark pool exchanges.

And as you'll discover in just a minute, the edge makes A LOT of sense.

And a lot of money in this test with a 179% CAGR. That's even better than the new ETHE strategy that has absolutely been nailing gains and sitting at new all-time highs while crypto craters.

My main concern with this BITO/BITI strategy is and always will be over-fitting to the past. That's why in addition to setting 20% of the data aside for verification, I set aside an entire year.

That's right, I set up the tests so both the computer and ME could only see data through December 2024. And only after the strategy passed my checklist did I un-blind all the data to see that it kicked ass during the recent crypto bear market.

Now here's the interesting part where this strategy makes sense in my ‘lil ‘ol noggin'.

It uses short sale data from a US Dollar ETF (UUP). Makes sense that there would be some sort of relationship between the dollar and what some believe will replace it.

I've already shown you markets move in mysterious ways, but the inner working of the markets get creepier when I sic machine learning on them to expose their secrets.

Right now, only a small percentage of Portfolio Boss members have access to Dark Pool data. Soon, I'll be launching a new trading strategy package with full access to dark pool data AND this new BITO/BITI Bitcoin strategy and a whole lot more.

In the mean time, make sure to grab your Christmas gift trading pack. It's free. No strings attached. I'm sure others would charge thousands for it if they could.

My goal is to provide real value up front before asking for moolah… and introduce you to the consistency that comes with multi-strategy trading and machine learning.

Go ahead and grab it here >>

Portfolio Boss Strategy Performance

All-weather Alpha: +37.0 for 2025. +0.1% for December

Easy Ai Profit System: +28.8%. +2.2% for December

Outlier Method: +27.4%. -0.5% for December

Expect about 0.1% slippage per month on these numbers for market impact and commissions. Slippage can be greatly reduced by using our included order types for Interactive Brokers. We specialize in scaling larger accounts.

Trade smart,

Dan “Prince of Proof” Murphy

One of the Craziest Market Stats You’ll Ever See

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