Post #851 by DrBob2 on the Mechanical Investing board

Investment Strategies / Mechanical Investing ❤

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I do not have any idea of how you can tell when you should own TQQQ and when you shouldn't.

What about something simple. Using a weekly chart compare the close of QQQ to its 52-wk moving average. If the close is above the MA use TQQQ; if it closes below then exit.

You would have exited in late September 2000 and been out until mid-March 2003. There were ins and outs over the next five years, but the final exit for the next bear was in mid-August 2008. The return to TQQQ would have been in early June 2009. More ins and outs (including exiting for four weeks in the spring of 2020) but mostly long. Exit again in early February 2022 with a return a year later.

There are obviously whipsaws and such, but it might be worth looking into.

DB2

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