Markets are sketchy right now with some whipsawing. That is evidenced by the November trade gaining 7.42%. But, unfortunately, that was followed by a losing trade of 4.76%.
I didn’t update the site with a post on the TQQQ Trading Strategy trade in November. That trade was excellent, resulting in a gain of 7.42%.
The trade last week was not as good, resulting in a loss of 4.73%. It is important to remember that the system does result in TQQQ trades that show losses. In backtest results from 2013, ~20% of trades were losers. There is not a trading system that does not have losing trades. The TQQQ Trading Strategy has them and will continue to have them.
Here is a chart that shows the last two trades; the Green Bar buy signals and the Red Bar sell signals for each transaction.
As you can see, the system bought TQQQ on November 15 at the open, following the Green Bar signal. It then sold TQQQ following the Red Bar signal on November 22. That was a 7.42% gain.
In December, the TQQQ trades were a buy on December 7 and a sale on December 14. That was a 4.73% loss.
TQQQ Trading Strategy Performance since FEB 3, 2020
A $25,000 allocation to the TQQQ Trading Strategy on February 3, 2020, has increased to $53,323. That is an annual return of 50.17% or a net profit of 113.29%.
Compared to the SPY, a $25,000 allocation turned into $36,760. That is an annual return of 22.99% or a net profit of 47.04%.
Drawdowns with the TQQQ Trading Strategy continue to be good, with a maximum system drawdown of -8.72% compared to the maximum system drawdown for the SPY of -33.72%.