Post #3730 by rayvt on the Mechanical Investing board

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Investment Strategies / Mechanical Investing

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An anti-beta ETF (BTAL) acting as a hedge, and a 3x leveraged Nasdaq fund, specifically TQQQ,

Interesting.

Playing with this and a few variations, it looks like the "real" CAGR is more like 17% than 19%. Annual, semiannual, and quarterly rebalance were essentially the same up until Jan 2022. By the luck of the draw, the 2022 rebalance was lucky for the rest of the 2022 bear market. That is kinda wierd seeing what happened to TQQQ in 2022, down -79%. Ugh.

This confirms something I noticed a while ago. TQQQ seems like an arguably reasonable investment if you can apply some decent timing. Volatile as all get out!
I guess you have to ask yourself: do you feel lucky?

Link: https://testfol.io/?s=jVb1sNKubQC

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