The recent TQQQ trade closed at the open today. It was a quick trade with the TQQQ Trading system only holding TQQQ for two days.
The result was a 1.01% profit.
TQQQ Trade Details
The trade was opened on November 16th, after a Green Bar was signaled the day before. This was the first Green Bar signal, so a 25% position was established.
The entry price was $144.75. The TQQQ headed higher on November 16th and ended up closing at $148.48.
The next day was mixed, however the uptrend in the TQQQ was not strong and a the price action got weak and a Red Bar Signal was automatically generated by the system.
Based on the strict system instructions, the system exited the TQQQ today (November 18th) at the open for a price of $146.26.
On a $25,000 account value allocated to the TQQQ Trading System, that generated a 1.01% return. Not bad for a two day trade.
Here is the trade output from Amibroker, which helps me backtest and see watch the ongoing performance of the system. You can see the purchase on November 16th and the sale on November 18th:
Here is what the trade looked like in TradingView. You can see the Green and Red Bar signals. In addition, I have highlighted the consolidation period that we are in right now. Not a lot of action, especially for the TQQQ!
What is interesting about the trade today is that the system got out at the open, as it is designed to do. The TQQQ continued to bounce around all day, and ended up closing below the trade’s entry price. If the system had held, the account would have been negative.
We Continue to see Whipsaws in the Technology Markets (TQQQ Trade)
The TQQQ is a leveraged ETF that tracks the performance of QQQ, which tracks the the Nasdaq. The Nasdaq has been stuck in a range over the past week and the system has been getting in and out of positions relatively quickly.
This happens from time to time. I wrote about it last week in my article about Whipsaws, and gave some suggestions on how to deal with it.
I am confident that at some point the TQQQ will break out of this consolidation and the system will see even more profitable trades.
Current Equity Chart for the System
For the purposes of tracking the system for the Robotic Investing site, the current portfolio started on February 3rd, 2020. The system continues to outperform the SPY since that time.
Here is what the equity chart looks like as of November 18, 2020.
Learn More About the TQQQ Trading Strategy
I developed the TQQQ Trading Strategy to meet one of my needs: to trade a system that allows me to continue to work my day job.
The TQQQ Trading System only requires me to check the signals in the evening, and if signals are generated to enter the trades to trigger at the open in the morning.
It also helps me with one of my problem areas – trading emotionally.
If you want to learn how to trade the TQQQ Trading Strategy yourself, please check out the full details here. All the details of the system are outlined in the book, and only requires TradingView as your charting platform.