TQQQ vs. SPXL

[brucealder]

Since TQQQ seems to outperform SPXL, is there a strategy that incorporates TQQQ? I’ve looked but I may be missing it.

If there’s not a current strategy that incorporates TQQQ, would it make sense in the UISx3 portion of my portfolio to swap out SPXL for TQQQ (while keeping the same mix you recommended)?

Thanks

[Frank1 Grossmann]

We don’t have such a strategy for the moment, however it would be quite simple to do it. It’s probably a good idea to construct a new strategy which can switch between SPY, DOW and Nasdaq100 using the 2x leveraged ETFs.
With 3x leveraged ETFs we have the problem of the delisting of the only 3x Gold ETF which make the strategy difficult to use for most of our subscribers.

[Mark Vincent]

Hello Frank,

I have the below Strategy using TQQQ but the optimization only seems stable with Quarterly rebalance and long look backs. Does this in general raise red flags when the optimization is not steady across different time periods and look backs? I noticed the new leveraged strategies are only stable in the optimization with short lookbacks? I think you mentioned that with leveraged ETF you want short lookbacks and monthly rebalancing to act quick?

Would appreciate your thoughts on leveraged ETF, Rebalance period and lookback period when using the optimizer.

Cheers,
Mark V.

[StrategyTitle]
0 TQQQ TMF UGL SR3
[StockItems]
TLT=Barclays long term treasury (10 years),2,2,1
TMF=3x direxion leveraged 20-yr treasury,2,2,1
TQQQ=,2,1,1,0.00,,0,0
UGL=GLD*2,2,1,1,0.00,,0,0
[StockSets]
StockSet7=0 SV RRSP TQQQ TMF UGL SR3,1,3,StockSetStrategy7,2020-06-24,2020-06-29,TLT@1,TMF@1,TQQQ@1,UGL@1
[StockSetItems]
StockSet7Item1=0111,StockSet7Item2,0,00000004,2,
StockSet7Item2=0111,StockSet7Item3,1,00000008,2,
StockSet7Item3=1000,StockSet7Item4,2,00000010,2
StockSet7Item4=-,-,2,00001000,2,
[StockSetStrategies]
StockSetStrategy7=2,2,,0111,10,,1
[StockSetStrategyParameters]
StockSetStrategy7=-5,3,170,3,-2,7,-3,7,-6,7,-1,7,0.00,0,-150.00,1,25,1,0.00,0,0.00,0,0.50,1,0,0,0,0,0,0,0,0,0.00,4,0.00,4,0,0,0,4,0,4,0.00,0,0.00,0,0.00,0

[DWoods]

I’ve always used TQQQ instead of SPXL. No issues.

[DWoods]

And I’ve used TQQQ since 2015. The only notable difference is that TQQQ can have more dramatic drops during market volatility vs SPXL, but that is countered by its outperformance during normal market recovery.

[Frank1 Grossmann]

I constructed a US Market strategy using 2x leveraged ETFs for SP500, DOW, Nasdaq, Treasuries and Gold. The result is impressive and even better than the old 3x leveraged UIS strategy. This would maybe be a good replacement for the old strategy. Here are the 3 zipped ini files which you have to copy in your ini folder.
https://www.dropbox.com/s/qrgxplf52uoz77g/US%20Market%20Strategy%202x_20200707122841_LI.zip?dl=0

[Mark Vincent]

Thanks Frank any comments on the following:

I have the below Strategy using TQQQ but the optimization only seems stable with Quarterly rebalance and long look backs. Does this in general raise red flags when the optimization is not steady across different time periods and look backs? I noticed the new leveraged strategies are only stable in the optimization with short lookbacks? I think you mentioned that with leveraged ETF you want short lookbacks and monthly rebalancing to act quick?

Would appreciate your thoughts on leveraged ETF, Rebalance period and lookback period when using the optimizer.

[Invest]

Hello Frank,
Can you add the leverage US market strategy also to the strategy library.

[Invest]

And are this ETF‘s also available for European investors or the same story as before?

[Frank1 Grossmann]

We will discuss this but we need to check this strategy more thoroughly before we publish it.
Regards Frank

[Frank1 Grossmann]

I have an IB an Saxo bank and a Swissquote account which all allow to trade these US ETFs and stocks

[Invest]

Thank you Frank for your reply I hope I’m able to trade them in my IB account as well I already had the plan to do it differently since all the problems with the US Etf’s but until then hopefully it’s possible.
It would be nice if it would be possible to include it in the portfolio builder on this side.
Regards,
Invest

[Author]

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