Excellent trade in the TQQQ Trading Strategy with a gain of 11.22%. Swing trading leveraged ETFs can work well if you have the patience and discipline to stick to a strategy.
After a couple of losing trades, it is excellent to get a trade that had such a nice gain. What was interesting this time was that the TQQQ Trading System bought TQQQ twice.
If you have the eBook, you know that the system can buy TQQQ up to four times in a row. In this most recent trade, the system put 25% of the available capital into the trade twice, meaning we invested 50% of the money allocated to the system. That was good as it allowed us to buy more TQQQ on the way up after that decline that started on September 28th.
Swing Trading Leveraged ETFs: Trade Analysis
The system generated a Green Bar signal on October 5th, which meant that the system put 25% of the money to work on October 6th. As a result, we bought TQQQ at the opening price of $120.26.
TQQQ bounced around over the next couple of days, gapping up but then pulling back over the next couple of days. Subsequently, the TQQQ ended up looking oversold again, so another 25% of the capital was invested on October 15th, after the next Green Bar showed up on October 14th. Once again, we bought TQQQ at the opening price of $134.60.
The share price moved up nicely and ultimately showed a Red Bar sell signal (over-bought) on October 20th. As a result, we sold all of the shares in TQQQ on October 21st at the opening price of $141.44
The net result was that the trade showed an 11.22% gain over 11 trading days. When swing trading leveraged ETFs, these are the results that pay off quickly.
TQQQ TRADING STRATEGY PERFORMANCE SINCE FEB 3, 2020
I created a Robotic Investing tracking portfolio on February 3rd, 2020, with a $25,000 investment. With this winning trade, the system has grown from $25,000 to $52,984. That is a net profit of $27,984 or 111.94%. On an annualized basis, that is 54.95%.
As a comparison, a buy and hold of the SPY over the same period netted $10,985, growing to $35,985. The SPY generated a 43.94% net profit or 23.66% annualized return.
The drawdowns are where it is the most impressive. The TQQQ Trading System maximum system drawdown of -8.72%. As a comparison, the SPY had a maximum system drawdown of -33.72%. Give me that lower drawdown with better returns any day!