Price & Market BehaviorExtended setlive in productionNew

afternoon drift

Updated dailyData needs: highlong onlyshort onlylong short
paper
2016
Source
Bogousslavsky, V. (2016). Infrequent Rebalancing, Return Autocorrelation, and Seasonality. Journal of Finance; Lou, D., Polk, C., & Skouras, S. (2019). A Tug of War: Overnight Versus Intraday Expected Returns. Journal of Financial Economics.
Citation only, paper link pending.

In plain terms

When a stock pushes hard in the afternoon (when the big institutions trade), it tends to keep moving the same way the next day.

How it works

Afternoon returns are dominated by informed institutional flow, unlike the noisier overnight-reaction morning session, and these time-of-day return components persist. A strong afternoon push tends to continue into the next day's open.

No live results for this strategy yet. Charts appear once it has earned a top spot on at least one stock, either on its own or as part of a blend of several strategies.
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Data dependencies

  • Intraday features daily

    A data feed this strategy reads, refreshed on its normal schedule.

  • Daily prices

    Adjusted-close OHLCV for every US-listed ticker; primary price feed.

Expected edge

Informed late-day flow persists overnight, so a strong afternoon move predicts next-day continuation.

Related families

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For informational and educational purposes only. Not financial advice. Learn more