The TQQQ Trading Strategy recently had two purchases on March 10th and March 15. The trade was looking great, however the last two days saw the strategy give up those gains. The result was a $3.79 per share loss or -4.25%.
Although the TQQQ Trading Strategy has seen a 28.48% compound annual return since May 10, 2012 while being in the market only 17.08% of the time, this most recent trade was not a winner.
The strategy did it’s job and kept the losses small, but it was still a loss. That happens and will happen. Anyone who tells you they have a strategy without losses is a liar!
Here is a visual of the most recent buys and sells in TQQQ, including the Green Bar buy signals and the recent Red Bar sell signal.
If you have bought the TQQQ Trading Strategy eBook, you will know that the system can purchase TQQQ up to four times in a row. Each purchase, the trader puts 25% of their allocated capital into TQQQ until they are 100% invested.
Sometimes the system only makes one purchase, other times it buys four times. In this most recent trade the system bough TQQQ twice, meaning it was 50% invested.
The average entry price based on the two purchases was $89.035 and the closing trade price was $85.25 for a loss of $3.79 per share or -4.25%.
For those of you who are interested, here are the three trades (2 buys and 1 sell) and what they look like in the Amibroker software I use for backtesting and system monitoring (click to view).
TQQQ Trading Strategy Performance Since Feb 3, 2020
As I do at the conclusion of each trade – win or loss – I post the cumulative results since I started tracking the performance for the site (in-sample results).
Even with this small loss, the strategy continues to perform well. Up until the last month, the market has been on a tear. There is weakness in the tech stock right now (for whatever reason), which is why I like this strategy even more as it is not invested 100% of the time. It looks for oversold opportunities and tries to take statistical advantage of that.
Most of the times that works.
Here are the results since February 3, 2020 and starting with an initial investment of $25,000.
The current balance in the account is $47,828.40, or an annual return of 78.17%.