The TQQQ Trading Strategy entered the TQQQ on February 3rd after a Green Bar signal was generated on the daily chart. The trade resulted in a $490 gain, or 4.07% after only seven trading days.
As a reminder, the TQQQ Trading Strategy is a mean reversion system that looks for oversold opportunities in the TQQQ.
On February 3rd, the TradingView Pine Code developed for the system displayed a Green Bar which lets traders of the system know that they can buy the TQQQ on the next trading day at the open.
The system bought TQQQ on February 3rd at an open price of $103.93.
The way the system works, there can be up to four purchases of the TQQQ in a row depending if the TQQQ continues to move down and get even more oversold.
In this most recent trade, that did not happen and the system only generated one buy signal. As a result, the system was only 25% invested. This happens when the TQQQ uptrend is strong and the market only provides opportunities for quick trades.
Since February 3, 2020 the average trade length was 8.92 days. This recent holding period of 7 trading days was on par with that.
On February 10, 2021 a Red Bar signal was generated which means that according to the system, the TQQQ is overbought. That means that on the day following a Red Bar, the system sells the TQQQ at the open.
That is a gain of $4.23 per share or 4.07%. An easy trade with quick results.
TQQQ Trading Strategy Performance Since Feb 3, 2020
I began tracking the performance of the strategy for this site since February 3, 2020 (just over a year ago as of this writing!) It has been a very strong year.
Starting with a $25,000 investment in the strategy, the value of the portfolio after this most recent trade is $48,903.31.
Overall a solid trade that went according to plan. I love this strategy because it tells me exactly when to buy TQQQ and when to sell TQQQ. The system does the work, so no emotions or discretionary judgement is involved.
That suits my personality style perfectly.