Buy and holders, what’s your system?

Investor summaryNeutral

Author asks buy-and-hold investors about systems for managing leveraged ETFs like TQQQ, discussing constant leverage or buying dips.

Bull points

Mixing TQQQ with QLD (e.g., 50/50) can help maintain a target leverage ratio like 2.5x for long-term holding.
Buying only when the ETF is down 10% is a practical strategy for accumulating leveraged positions.

Bear points

Leveraged ETFs like TQQQ carry extreme downside risk, with potential maximum drawdowns reaching -99%.
Technical timing strategies like 200SMA or 9-sigma require too much effort and may not suit passive investors.

Post body

Specifically for buy and hold investors. What’s your system? I realize it’s a bit of a false question but some answers could be:

50/50 TQQQ/QLD to maintain 2.5x leverage forever

Only new contributions when down 10%

Only 100% QLD

I don’t like 200SMA and to be honest, 9sig feels like too much work (plus the max drawdown of -99%)

Anyone have a plan that works for them?

Discussion · top comments

No comment snapshot fetched for this post yet.