Post #4160 by rayvt on the Mechanical Investing board

Investment Strategies / Mechanical Investing ❤

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I am interested in how the bear catchers performs with 3X ETF's like TQQQ and TECL over 5, 10 , 15, 20 year periods but don't know how to run the screen. Folks are hesitant to invest in 3X ETF's because of the volatility. But if you look at the results over long periods they are tremendous if you have the stomach.

Has anyone ever looked into the results?

We are somewhat limited by the inception date.
TQQQ (3x) 2/9/2010. So all in a bull market.
QLD (2x) 6/19/2006 So it caught the 2008/2009 bear market. Where it got crushed.
Ditto TECL, 12/30/2008

I think that if you want to do these levered ETFs it is best to buy it and never look at it again.

I never have found a timing scheme that did much good. The huge drawdowns are just part of the game.

Problem is, we don't know if the return of these levered ETFs are just an anomaly due to tech stuff happened to doing really good at this one period of history.

There was a thought of BTAL/TQQQ, rebalanced annually or never.

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