TQQQ Trading Strategy 3x ETF Trade Results: +5.64%

The most recent 3x ETF TQQQ Trading Strategy was a winner. The system achieved a 5.64% gain in only 7 days, and was able to avoid one of the largest down days since October 2020.

The recent trade for the TQQQ Trading Strategy saw positive results. The position was opened on January 20, 2021 after the system generated a Green Bar signal.

According to the system’s position sizing requirements, 25% of the portfolio equity was used to buy 3x ETF TQQQ.

Following a Red Bar Signal that generated a sell signal last night, the entire TQQQ position was closed at the open this morning.

The result was a $671 gain, or 5.64% in 7 days. Below is a screenshot from Amibroker of the trades that were made:

Below is the chart which shows the Green Bar Signal, subsequent buy as well as the Red Bar Signal and sell.

Avoided a Drastic Drop in 3x ETF TQQQ

Anyone who trades the ex ETF TQQQ knows that the volatility can be dramatic. Today was a good example of that. The TQQQ dropped 8.06%.

However, due to the rules of the TQQQ Trading Strategy, the system exited the position at the open today, which avoided that large drop. In fact, the sell price of $101.26 was very close to the high of the day.

3x ETF Performance Since February 3, 2020

So how has the system performed since we started tracking it for this site? Long story short, it has performed very well. Below is the equity chart based on a $25,000 investment into the system on Feb 3, 2020.

The system has grown $25,000 into $48,412. Compared to an equivalent investment into the S&P500 (i.e. SPY) which grew to $28,435, the TQQQ Trading Strategy has obviously beaten a buy and hold strategy.

Below is a little more detail of the performance – look at the first and last columns to see a comparison between the TQQQ Trading Strategy and the S&P500.

Please look at the drawdown figures, which are better for the TQQQ strategy.