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The strategy has proven itself most impressively with TQQQ. Over the full test period(about 12 years), the strategy achieved an amazing total return of 48,152%. In simple terms, a $10,000 investment would have grown to about $4.8 million.
The average annual return stood at about 67%, far beyond what most strategies can consistently achieve. The strategy executed a total of 321 trades over 12 years, an average of about 27 trades per year (2-3 trades per month). This highlights its efficiency -exceptional returns with minimal trading activity.
No less important than the total return is the stable pattern of returns. The strategy was particularly successful in years when the market was volatile.
When comparing the strategy to the Buy and Hold approach with TQQQ, the differences are significant:
When comparing the strategy to the Buy and Hold approach with TQQQ, the differences are significant:
The strategy also works well on regular ETFs like QQQ or SPY. Using QQQ, the strategy achieved a total return of 725%, compared to 450% with the Buy & Hold approach, while maintaining a maximum drawdown of only 10-15%.
Additionally, for investors looking for a middle-ground solution between high-growth leveraged investing and a more stable portfolio, a 50% TQQQ / 50% Bonds or Cash allocation can provide a compelling alternative withTotal return of 3,745 % (35% yearly average) and Maximum drawdown of 14%
This hybrid approach offers a balance between risk and reward, reducing volatility while still outperforming traditional indices over time. It is particularly suited for investors who want exposure to leveraged ETFs but with reduced drawdowns.
The strategy is effective not only on leveraged ETFs but also on leading individual stocks. It has demonstrated strong results on companies like NVIDIA, Tesla, Apple, andGoogle, achieving significantly higher returns with reduced drawdowns compared to passive holding.
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