What is the OHS?

A screener created by Stonks Twin Danny that gives suggestions for stocks that are likely to go up overnight.

The OHS is ideal for portfolios of all sizes. Sub $25k accounts don't need to worry about Day Trading Restrictions, as positions are not intended to be sold until the next morning.

It is also ideal for those who don't have a lot of free time to trade.

How do I use the OHS?

As per the name, the screener suggests that you hold these positions overnight.

There will be an alert in the #stonks-skans Slack channel every weekday shortly before market close.

Set rules/limits for yourself before you buy based off of the overnight screener.

How many positions am I going to buy?

How much do I want to invest overnight?

At what time am I going to buy?

Do I care if I have multiple stocks from the same sector?

Common practice is to diversity the total amount you'd like to invest, equally across all your positions.

Go through each ticker, and preform some quick Technical Analysis. Sorry, but the screener isn't perfect

Do I see any patterns?

Does it look overbought? Oversold?

Is it trending down long term?

Has it broken through support/resistance? It it going to soon?

Remember: Number of shares means nothing! Don't get hung up on price. It doesn't matter if you have 10k shares, or 10 shares. With the same amount of equity in each, +10% is the same.

How Accurate is the OHS?

This screener was crafted and tuned by backtesting the overnight hold strategy. The results of which make a a couple assumptions;

• Position is bought AT the close price.
• Position is sold AT the open price the next morning.

This means there is a 15 minute difference between when the screener posts to Slack, and what is backtested.

The backtesting, and the screener don't do much technical analysis. Performing some of your own might allow you to beat the backtested results.

Backtesting Results

There are a couple ways to backtest results.

1. Steady Investor

   Strategy Details:

   • Invests $10k every single day.
   • Split $10k evenly across ALL available positions (max of 50)

   Results:

   Days Traded: 1457 (Jan2015-Jan2021)

   Total Positions: 16,520

   Total Growth: +$117715 (+1,077%)

   Best Day: +57.17%

   Worst Day: -18.15%

   Avg Positive Day: 2.11%

   Avg Negative Day: -1.45%

   Positive Days %: 57.72%

   Positive Positions %: 59.49%

   

   Takeaways:

   • 59.4% of all suggested positions would have been positive overnight.
   • The best day is much more positive than the worst day is negative.
   • The average positive day is much better than the average negative day.

2. YOLO Investor

   Strategy Details:

   • Start with $10k
   • Divide entire portfolio evenly across all available positions.
   • Max position size of 100k shares or $500k. Whichever comes first

   Results:

   Days Traded: 252 (Jan2020-Jan2021)

   Total Positions: 6,388

   Total Growth: +$910,290 (+9,003%)

   Best Day: 40.69%

   Worst Day: -18.1%

   Avg Positive Day: 3.8%

   Avg Negative Day: -2.07%

   Positive Days %: 65.87%

   Positive Positions %: 60.91%

   

   Takeaways:

   • Over the past year, the screener has a high accuracy of 65.87% of the days being positive.
   • Exponential growth is nuts. Just be sure to manage your risk. Exponential wins, also mean exponential loses are possible.
   • If something seems too good to be true, it probably is. That being said, this data is not made up.