Now that was a wild trade. The TQQQ Trading Strategy ended up with a 2.34% profit after a very rough week in the market last week. Despite the ups and downs of the market, the system generated a gain of $2.27 per share.
Although not as strong as last trades 14.46% gain, this was a trade where I was very glad I had the system in place. The key to this trade was the multiple buy signals that were generated, allowing the system to take advantage of the mean reverting nature of the market.
For this trade, the system was 75% invested. In other words, the system bough the TQQQ 4 separate times as the market sold off a bit and bounced around. If you have the eBook, then you know that the TQQQ can be purchased up to four times in a row; every time a Green Bar indicator is signaled. Here is a visual representation of the three buys (and the final sell) for this most recent trade:
On May 6th, the first Green Bar was signaled and that means that the system bought TQQQ at the open on May 7th. The second Green Bar occurred on May 11th and the third on May 14th. The average cost of the shares of TQQQ for those three purchases was $96.28 (rounded).
On Friday (May 21st), a Red Bar signal was generated which meant that today (May 24th) all the shares of the TQQQ were sold at the open. This resulted in a gain of $2.27 per share, or 2.34%. Given the market choppiness, I am very happy with the profit generated over the past 12 trading days.
TQQQ TRADING STRATEGY PERFORMANCE SINCE FEB 3, 2020
For tracking purposes on this site, the system started to trade the TQQQ Trading Strategy on February 3, 2020. Since that time, the system has performed as expected and is ahead of the S&P 500.
The system has a Net Profit % of 101.65% and an annualized profit of 71.22%. The best part is that it has achieved those returns with a maximum system drawdown of -8.72%.
Over the same period of time, the SPY had a maximum system drawdown of -33.72%. Here is the equity chart for the system since Feb 3, 2020:
Overall a great trade by the system. Now we wait until the next trade and sit by safely in cash….