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Bryan Bottarelli’s (Monument Trader’s Alliance) “Secret Profit Window”

Bryan Bottarelli’s (Monument Trader’s Alliance) “Secret Profit Window”

February 10, 2024 by Theodor

Trading tactician Bryan Bottarelli tells us not to put another $1 into the market until we know about his “Secret Profit Window.”

Studies have shown it allows anyone to own stocks during periods that have been proven to deliver the biggest returns.

 

The Teaser

This “Secret Profit Window” also automatically reduces our exposure during the market periods proven to deliver negative returns.

Source: monumenttradersalliance.com

Bryan Bottarelli started his trading career duking it out in the packed Chicago trading pits and has been operating his own independent trading research service for the past 15 years.

We have previously reviewed his firm, Monument Traders Alliance – Scam or Expert Speculators as well as other trading strategy teasers they have published, such as Nate Bear's One Ticker Payouts here at Greenbull.

Bryan believes this could become the greatest moneymaking “cheat code” of our lives.

I'm thinking…here we go again, I've heard this before. But Bryan dropped one statistic that made me drop my ice-cold juice drink.

Over the past 30 years, this one time of day has been responsible for ALL of the positive returns in the market.

Wow!

Take away this one Secret Profit Window, and the 30-year return on the S&P 500 is negative.

Here is an example of the Secret Profit Window in action, using everyone's favorite meme stock, AMC Entertainment.

If we had owned AMC only during the Secret Profit Window, we would have made a return of more than 30,000%.

Source: monumenttradersalliance.com

A $1K investment could’ve grown into $306,000 in only three years.

But, had we only traded AMC outside of the Secret Profit Window, we would have lost 99.6%.

Source: monumenttradersalliance.com

Every $1,000 would be worth only $3.87.

Before the Federal Reserve released a blockbuster memo, the general public was entirely in the dark when it came to the Secret Profit Window.

This is all about to change.

The Fed Helping Regular Investors?

Without getting too technical, the Fed's 96-page memo has one major takeaway.

If we can invest in the markets only during the Secret Profit Window and skip the times when stocks don’t perform well, we could make far more money than we do today.

What Bryan is teasing here is a way to do just this.

There is a new “index” in town, just like the Dow, the S&P, and the Nasdaq, that we can invest in.

But it has one major difference.

This new “index” automatically buys stocks for us during the Secret Profit Window and automatically sells them during times when stocks have been proven to perform poorly.

Bryan calls it the Next Major American Index.

 

The Pitch

A report has been published detailing how we can profit from this index called “Overnight Drift: How to Profit Using the Next Major American Index.”

Source: monumenttradersalliance.com

Inside this report, the exact ticker symbol for this “index” is revealed, and the only way to get it is by joining Bryan's weekly stock-picking newsletter called Trade of the Day Plus for $49 for the first year.

Included in the offer is a full one-year, money-back guarantee, two bonus reports, including one called “Options for Dummies 101”  and 52 new trade recommendations per year.

 

What in the World is the “Secret Profit Window”?

It all started with the introduction of electronic trading in the late ’90s.

This essentially allowed index futures on the S&P 500 to trade nearly 24 hours a day.

It created a situation where all the stock buys and sells that were left over from the previous U.S. trading session were settled overnight by the 24-hour computers before we woke up and the markets opened again the next day.

In the process, a phenomenon called “Overnight Drift” was also created.

As outlined in the Fed memo linked above, almost all market gains happen overnight, this is the “Secret Profit Window.”

The real return of the stock market during the day, when day traders are buying and selling stocks is negative.

Source: monumenttradersalliance.com

The answer as to why this happens lies in when the markets experience their highest levels of trading volume.

This is right at the market open and right at the market close, as we can see in this chart:

Source: monumenttradersalliance.com

Wall Street knows overnight is when the big bucks are made and they have programmed their high-frequency trading computers to take advantage of Overnight Drift.

A Look Inside the Secret Profit Window

At around 3:45 p.m. ET at the end of each trading day, Wall Street’s electronic computers start to make millions of trades.

All the big institutions program their computers to get their last-minute orders in before they’re off to their private clubs and $80 martini specials.

The orders pile up and the closing bell rings, creating a massive backlog of trades that are simply waiting to be filled.

At the close of trading, many of those trades remain unfilled.

But during the night, the computers work around the clock filling those trades, which immediately bumps up the asking price of those stocks.

This happens all night long and when the market opens the next day, wham!

Prices have miraculously spiked up, creating huge profits for Wall Street firms.

I have personally seen this happen and if you've spent any time in the market, you probably have too.

Starting now, we can profit from Overnight Drift and it’s as simple as buying an index fund.

 

Revealing Bryan Bottarelli's Next Major American Index

There are two ways to play the “buy the close, sell the open” strategy.

The hard way, which entails buying S&P futures at the close and then immediately selling them at the open of trading the very next day. This way is both expensive and time-consuming.

The easy way is to buy the Next Major American Index and forget about it.

No real clues are provided about the index other than that:

  • It is an index fund that was initially listed in late 2022
  • We can buy it for less than $35

Based on this brief description, I was able to track down the security Bryan is talking about.

It was the NightShares 500 ETF (NSPY).

  • NSPY was initially listed in late June 2022
  • The ETF traded in a narrow range between $31 and $27.

I am referring to it in the past tense because the actively managed ETF was delisted on July 31, 2023. So, it looks like it's back to the hard way of playing “buy the close, sell the open” for us.

But what about the strategy itself, is it as lucrative as Bryan suggests? Let's find out.

 

Is The Secret Profit Window The Real Deal?

Unlike other Johnny-come-lately market strategies we have reviewed here, the Secret Profit Window is backed up by a body of academic research.

One recent study from Bruce Knuteson, a former quant trader at D.E. Shaw, showed that from 1991 through 2021, the S&P 500's overnight session delivered a cumulative return of more than 1,700%, while the intraday sessions delivered a negative cumulative return.

Charles Schwab has also acknowledged the market's two most volatile trading hours, noting that this is largely because end-of-day trading tends to be dominated by institutional investors.

So, if the strategy works, then why did NSPY and another ETF designed to profit from overnight gains shut down?

The ETF lost just 7% in its only year from June 2022 to July 2023, so I suspect it was a case of lack of trading volume due to not enough individual investors being aware that it even existed.

In its summary prospectus, fund management did note that it sought to replicate the night performance of a portfolio of 500 large-cap U.S. companies. Perhaps a total market index like the Russell 3000 should have been traded instead for better results.

It appears retail investors can't have anything useful.

The Secret Profit Window is the real deal, we're just forced to trade it the hard way now.

 

Quick Recap & Conclusion

  • Trading tactician Bryan Bottarelli teases a “Secret Profit Window” that allows anyone to own stocks during periods that have been proven to deliver the strongest returns.
  • We come to learn that the “Secret Profit Window” is the overnight period between the market closing and opening the next day, as that is when nearly all market returns are generated.
  • Bryan published a report detailing how we can profit from this phenomenon simply by buying into an index fund, it's called “Overnight Drift: How to Profit Using the Next Major American Index.”
  • The good news is, we were able to reveal the index as NightShares 500 ETF (NSPY). The bad news is, it no longer exists, as the actively managed ETF was delisted on July 31, 2023.
  • A body of research shows the Secret Profit Window is the real deal, unfortunately, there is no buy-it-and-forget-it way to play it now.

Would you buy a “Secret Profit Window” ETF if it existed? Tell us in the comments.

Theodor


Theodor is an old school value guy, when he's not looking for great companies and great prices you can find him on the basketball court hooping.

  • i would totally do the overnight profit window. i’m so adhd and ocd that if i don’t control my amateur trading & over-researching times i can lose myself all day trying to sift thru the muck to make a much needed buck. happy i found u Theodore! Thx for doing you!

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