The most recent 3x ETF TQQQ Trading Strategy trade chalked up a 9.12% win ($13.78 per share) win. This was an easy trade to execute where following the rules played out nicely.
It ended up staying in the trade until a Red Bar was signaled on Dec 3rd. December 3rd was an interesting day, as the market moved around a lot and the Red Bar signal kept turning on and off throughout the day.
Have a look at this tweet I sent out on December 3rd at around noon:
As you can see, there is no Red Bar signal on Dec 3rd (last candle on the chart). However, as things progressed we ended up with a sell signal at the close.
That meant that a trade at the open the next day was required. The system got out at the open on December 4th for a nice gain.
Quick Wins in 3x ETFs
The average holding period for a win with the TQQQ Trading Strategy is 11 days. Sometime the system buys only once, other times it buys up to 4 times.
This was a trade that only bought once, and ended up holding for 6 days which is right in the middle of the holding period range.
As you can see from the chart, the TQQQ did bounce around a lot during the days (notice the wide range on each candle), but consistently closed higher each day.
3x ETF Performance Since February 3, 2020
So how is the system performing since things kicked off here in February 2020? Really strong.
As you can see the system is beating the S&P500 and taking advantage of the very strong performance of the tech stocks that we have seen this year.
It has also done this with much lower drawdowns than the S&P500. Since February 2020, the S&P500 has seen drawdowns as high as 33%.
In comparison, the TQQQ Trading Strategy has only experienced a 8.73% drawdown.
Overall a very good trade. These 3x ETF trades are easier to manage as they consistently go higher and make us more money. That is not always the case, but when it happens it feels like pretty easy money.