r/tqqq
TQQQ double momentum strategy results
Author shares TQQQ double momentum backtest results, aiming to avoid 90% drawdowns despite likely underperforming buy-and-hold.
- The strategy can effectively avoid 90% extreme drawdowns, providing peace of mind.
- It uses a cushion to avoid volatility drag and manages entry/exit timing well.
- The strategy is likely slightly overoptimized based on historical data.
- It will realistically underperform a simple buy-and-hold approach in the future.
- It misses out on some good bounce-back rallies due to stepping out of the market.
https://preview.redd.it/0fglax2kph9h1.png?width=1022&format=png&auto=webp&s=4fac4fbe8612d28fc80e7f8ff917f2c31c3860b2
https://preview.redd.it/uxb5tayrqh9h1.png?width=646&format=png&auto=webp&s=d8e21837566771da398f2cf7d3a4233f140cdc42
Probably a slightly bit overoptimized, but looking promising. I tried to stay out of drawdowns. It has a cost of staying out some good bounce backs though, but for my peace of mind I think I'm going to follow this. It's based on double momentum with boundaries. Slower to keep me in trade, faster to step back in early. Cushion to avoid volatility drag.
Realistically it will underperform simple Buy & Hold in the future. But following this I can be almost certain that I'm not going to see 90% drawdown.