TQQQ vs. SPXL

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  • #79335
    brucealder
    Participant

    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

    #79337

    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.

    #79338
    Mark Vincent
    Participant

    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,[email protected],T[email protected],[email protected],[email protected]
    [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

    #79340
    DWoods
    Participant

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

    #79341
    DWoods
    Participant

    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.

    #79342

    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

    #79346
    Mark Vincent
    Participant

    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.

    #79349
    Invest
    Participant

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

    #79350
    Invest
    Participant

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

    #79353

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

    #79354

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

    #79366
    Invest
    Participant

    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

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