SPY Trading Strategies and Systems | ETF and Futures – (S&P 500 + ES)

Last Updated on June 19, 2022 by Quantified Trading

SPY Trading Strategies and Systems

SPY (SPDR S&P 500 Trust ETF) is the oldest ETF still in existence. It started trading as long back as 1993 and has thus a long track record. SPY tracks the S&P 500 and you can thus use it both for short-term trading and long-term investing.

SPY is a great alternative to trading futures. Two good reasons for that are low slippage and commissions. Moreover, you can easily adjust the size to reflect your overall capital. For example, the futures contract may be too big for you, but the minimum size is one contract. Opposite, you can just buy an odd lot in SPY – one share (or more). Most brokers allow that and for very low commissions, like Interactive Brokers, for example.

We are trading SPY and the S&P 500 mini contract (ES), and we have since 2012 published many free trading strategies. Why do we trade SPY and stocks?

One of the reasons why we trade SPY, is that mean reversion trading strategies work well. It has not historically worked all the time, but over the last three decades, this type of trading has worked extremely well. Another advantage is the overnight tailwind. Since SPY’s inception in 1993, practically all the gains have come from owning SPY from the close to the next morning. We have covered this in a separate article about night trading startegies.

Below are some of the free SPY trading strategies we have published over the years. Additionally, we offer our best trading edges as a subscription service where we send you one potential strategy (idea) every month. You can find more info on our Monthly Trading Edges.

Free SPY trading strategies: