It's a good question...the last draw down in TQQQ from Nov 2021 to Jan 2023 was 80%+ percent. Most of us would not have had the discipline to hold or the liquidity to continually buy the dip. That is why our strategy works so well, it keeps our emotions out of it and we would have had the liquidity to deploy on the upswing.
It does very well. The Nasdaq and SP500 can be backtested back 24 years. See this video here we did about a month ago ua-cam.com/video/jMfvWrTSMDk/v-deo.html
It does splendidly overall. However, the largest drawdown is ~79% between Jan and Dec 2022; among other periods when it dropped significantly. You need diamond hands to be able to ride out such downturns, but it's also a great time to buy TQQQ at a bargain and lower your average cost basis. Another strategy is to sell all your shares once the 50-day average of the underlying QQQ/M stock drops below the 200-day average (aka Death Cross), which is a strong signal of an impending bear market. That happened in March 2022. Then once the 50-day average goes above the 200-day average (which happened in March 2023 and is a strong bull signal), you can start trading TQQQ again. This allows you to ride out the bear market on the sidelines and keep some money in cash or a volatility investment.
Yes, the 50d/200d crossover is a good basic swing trade strategy...emotions are the hardest to control and why we love the automatic trading, you can set it and forget it. Thanks for the comment, @jzen1455.
So glad to hear....we are very proud of our strategy and hope you consider trying us out for 30 days free. You can make the decision yourself whether or not our strategy is worth it. Please keep in mind, this is not a get rick quick process....slow and steady is the game. Thanks for the comments.
The allocation to TQQQ would depend on your risk tolerance...since it's triple leverage, consider this one with care. Keep in mind its decay over time too. Other ETFs we like are SPY, QQQ, ARKK and SOXL. ETFs (Exchange-Traded Funds) and ETNs (Exchange-Traded Notes) are both traded on stock exchanges, but they differ in structure and risk. ETFs are investment funds that hold a collection of assets like stocks or bonds, giving investors ownership of those assets and lower issuer risk. ETNs are unsecured debt instruments issued by banks, providing returns based on an index without ownership of the underlying assets, which results in higher issuer risk but no tracking error. ETFs may have dividends and capital gains taxes, while ETNs are more tax-efficient but rely on the issuer's creditworthiness. Choosing between them depends on your investment goals, risk tolerance, and tax preferences.
The best part is you can apply our strategy is you can apply it too a number of different stocks and EFTs, depending on your tolerance. Some are very risky even with our strategy applied. Liquidity: slippage and bid-ask spreads) can crush you quickly so we have to be careful as applying our strategy to a good stock and/or EFT. This is not a get rick quick method, steady as she goes. Good luck with your trades.
Using buy and hold even as a regular strategy is not correct for unleveraged funds. Simply follow macro trends and you'll reduce drawdowns and increase gains.
The buy and hold strategy is very good...but we don't recommend using the buy and hold on the leverage ETF like TQQQ...the decay will not reap the best results. Our strategy is a swing strategy so we are in and out of trades anywhere from a day to a week or so....no buy and hold here. One example, if you held the QQQ during the Dot.com bubble, you would have lost 70+ of your money and would have waited 600+ days to make your money back. This would definitely test your will power and diamond hands, and most people would have sold to early and bought back in too late. Thanks for the comment.
The buy and hold strategy is a very good one and definitely hard to beat. One of the ways our strategy is better than the buy and hold is due to the low draw down over the 20+ year back testing...that is hard to beat.
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Are you gonna actually share the strategy?
Yes, you can have access to the strategy for 30 days free! Hope you join and to see you in our Discord soon!
What if you held it and kept adding to it during the draw down? What would the come up have been?
It's a good question...the last draw down in TQQQ from Nov 2021 to Jan 2023 was 80%+ percent. Most of us would not have had the discipline to hold or the liquidity to continually buy the dip. That is why our strategy works so well, it keeps our emotions out of it and we would have had the liquidity to deploy on the upswing.
Crypto investors have the discipline haha. Thanks for the response.
You Bet!
it would have been alot more than QQQ. Of course people dont want you to know this because it doesn't push their agenda.
We appreciate your comment.
How does the strategy do if you do a longer backtest, say the past 10 years?
It does very well. The Nasdaq and SP500 can be backtested back 24 years. See this video here we did about a month ago ua-cam.com/video/jMfvWrTSMDk/v-deo.html
It does splendidly overall. However, the largest drawdown is ~79% between Jan and Dec 2022; among other periods when it dropped significantly. You need diamond hands to be able to ride out such downturns, but it's also a great time to buy TQQQ at a bargain and lower your average cost basis. Another strategy is to sell all your shares once the 50-day average of the underlying QQQ/M stock drops below the 200-day average (aka Death Cross), which is a strong signal of an impending bear market. That happened in March 2022. Then once the 50-day average goes above the 200-day average (which happened in March 2023 and is a strong bull signal), you can start trading TQQQ again. This allows you to ride out the bear market on the sidelines and keep some money in cash or a volatility investment.
Yes, the 50d/200d crossover is a good basic swing trade strategy...emotions are the hardest to control and why we love the automatic trading, you can set it and forget it. Thanks for the comment, @jzen1455.
@@jzen1455Your idea is a strategy I was also contemplating.
So glad to hear....we are very proud of our strategy and hope you consider trying us out for 30 days free. You can make the decision yourself whether or not our strategy is worth it. Please keep in mind, this is not a get rick quick process....slow and steady is the game. Thanks for the comments.
What percent of your portfolio do you allocate to trade TQQQ? What are other leveraged ETFs do you suggest? Also, how does an ETF differ from an ETN?
The allocation to TQQQ would depend on your risk tolerance...since it's triple leverage, consider this one with care. Keep in mind its decay over time too.
Other ETFs we like are SPY, QQQ, ARKK and SOXL.
ETFs (Exchange-Traded Funds) and ETNs (Exchange-Traded Notes) are both traded on stock exchanges, but they differ in structure and risk. ETFs are investment funds that hold a collection of assets like stocks or bonds, giving investors ownership of those assets and lower issuer risk. ETNs are unsecured debt instruments issued by banks, providing returns based on an index without ownership of the underlying assets, which results in higher issuer risk but no tracking error. ETFs may have dividends and capital gains taxes, while ETNs are more tax-efficient but rely on the issuer's creditworthiness. Choosing between them depends on your investment goals, risk tolerance, and tax preferences.
Whole portfolio in leveraged etfs ... follow macro trends. Easy $.
The best part is you can apply our strategy is you can apply it too a number of different stocks and EFTs, depending on your tolerance. Some are very risky even with our strategy applied. Liquidity: slippage and bid-ask spreads) can crush you quickly so we have to be careful as applying our strategy to a good stock and/or EFT. This is not a get rick quick method, steady as she goes. Good luck with your trades.
Using buy and hold even as a regular strategy is not correct for unleveraged funds. Simply follow macro trends and you'll reduce drawdowns and increase gains.
The buy and hold strategy is very good...but we don't recommend using the buy and hold on the leverage ETF like TQQQ...the decay will not reap the best results. Our strategy is a swing strategy so we are in and out of trades anywhere from a day to a week or so....no buy and hold here. One example, if you held the QQQ during the Dot.com bubble, you would have lost 70+ of your money and would have waited 600+ days to make your money back. This would definitely test your will power and diamond hands, and most people would have sold to early and bought back in too late. Thanks for the comment.
All those taxes incurred if anyone actually did this compared to buy+hold and selling covered calls or cash secured puts.
The buy and hold strategy is a very good one and definitely hard to beat. One of the ways our strategy is better than the buy and hold is due to the low draw down over the 20+ year back testing...that is hard to beat.
Interesting
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