Reduced volume means finding a trading strategy that works well in a flat market. To this end, Shadowtraders has developed the “Dog Park” strategy. This is tailored especially for off hours trading and relies on a flat market to be profitable. This is an easy trade to put on and as long as the market remains flat, can be very profitable.

One thing to consider while you are nite trading is greater price fluctuations. With fewer traders, should someone appear with 500 contracts, the impact of that on the futures contract could be greater than during normal trading hours when so many contracts are being processed that 500 contracts is just a drop in the bucket.

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