Update: TQQQ Trend Following February 2019

Update: TQQQ Trend Following February 2019

February 2, 2019 0 By Jeremy


Rules-Based Strategy Update: TQQQ Trend Following February 2019

***Note: I personally use a new TQQQ Trading Strategy and no longer trade this one.  The new strategy is much more reliable and manages drawdowns much better.  In has beat the S&P500 since 2010 and is very easy to trade.  Check out the links on the site for how to get access to this system. ***

The TQQQ Trend Following system is a modified buy and hold system that uses a 3x leveraged ETF that tracks the Nasdaq 100 (QQQ). The Trend Following component means that the system will buy and sell TQQQ based on where QQQ trades in comparison to its moving averages.

Since this uses a leveraged ETF, the system has a higher degree of risk. However, by using trend following principles the risk is managed to a more appropriate level. That said, there may be times when the system goes into a big drawdown before the end of the month, which means that having some intestinal fortitude to hold through those periods is important.

You can continue to see the progress results of this system by subscribing to the Robotic Investing newsletter. I will email you whenever a new post goes live, including all of the strategy updates I track on the site.

TQQQ Trend Following Rules-Based Investing

This portfolio trades based on specific rules that tell the investor when to buy and sell TQQQ. Here are the rules of the strategy:

  1. TQQQ must be in a positive uptrend to trade. It must be trading above its 200 and 50 day simple moving average. If not, then TQQQ is not purchased.
  2. TQQQ is purchased at the Open following two consecutive days trading above the 200 day simple moving average.
  3. Set a trailing stop at the 50 day simple moving average.
  4. If TQQQ closes below the 50 day simple moving average, then sell next day at the Open.
  5. As long as TQQQ continues to trade above the 200 day simple moving average, then repurchase TQQQ at the open on the third day after the two previous closes were above the 50 day simple moving average.

Again, this is a riskier strategy but has provided solid returns in the past. Using the market filter lowers drawdowns (see more in this post: TQQQ Trend Following).

Signals: TQQQ Trend Following

Each month I generate the signals for the portfolio using TC2000. If you want to give TC2000 a try in order to generate the signals for the strategies on Robotic Investing, then use this link for $25 off.

There is no change for February 2019 – the system is in cash.

Here was the QQQ at the beginning of February 2019:

QQQ Daily Trend - February 2019

Strategy Tracking & Performance: TQQQ Trend Following

Here is the portfolio tracker and performance chart for TQQQ Trend Following. The Morningstar Portfolio Tracker is used to track all the systems at Robotic Investing. As you can see the strategy performed better than the S&P500 over the month.

This portfolio was started on July 2nd, 2018.

Portfolio Value:

TQQQ Trend Following Portfolio Value - February 2019

Portfolio Performance:

TQQQ Trend Following Portfolio Performance - February 2019

Note: When reviewing the performance chart, compare only the Total Return to the Index return. The personal return is inaccurate due to how Morningstar handles cash.

I update all of the strategies at Robotic Investing on a monthly basis. If you want to get notified when each strategy is updated, then please consider subscribing to my newsletter. You will only receive emails when posts have been updated.

Disclaimer: The information provided on this site is for education purposes only. The author is not a registered financial adviser and the ideas discussed on the site are just trading analysis and not recommendations. Robotic Investing doesn’t endorse any of the comments that might appear on the discussion threads. There is no guarantee for those comments to be accurate. By reading this site you automatically agree that Robotic Investing is not responsible for any of your trading decisions. Remember not to risk money that you cannot afford to lose. RoboticInvesting.com and all its products are Copyright© by Robotic Investing and property of Robotic Investing. All Rights Reserved.

Featured Image By: Jorge Franganillo – Barcelona