QQQ & TLT Strategy: Turn $100k into $1.2M (20-Year Backtest)
This strategy trades the NASDAQ 100 (QQQ) against long-term treasury bonds (TLT) to capitalize on the relationship between growth stocks and interest rate sensitivity.
✅→ The 2 free backtested strategies are available here: @
Trading Strategy Overview:
Core Indicators: The strategy uses a "spread" calculated by dividing the price of QQQ by TLT, followed by a 3-day Relative Strength Index (RSI) of that spread.
Buy Signals (QQQ): A long position in QQQ is entered when the 3-day RSI of the spread falls below 15; the position is closed when the RSI rises above 70.
Buy Signals (TLT): A long position in TLT is entered when the 3-day RSI of the spread rises above 85; the position is closed when the RSI drops below 30.
Execution: All trades are executed at the market close, with 100% of equity allocated to each trade.
Backtest Performance (20-Year Period):
Capital Growth: Initial capital grew from $100,000 to $1.2 million.
Risk Management: Drawdowns exceeded 20% only twice during the period, compared to a maximum drawdown of over 55% for a buy-and-hold NASDAQ 100 approach.
Time in Market: The strategy remained invested 58% of the time.
This systematic approach aims to provide growth while maintaining smaller, shorter-lived drawdowns compared to traditional index holding.
#tlt #qqq #bond #nasdaq100 #tradingstrategies #tradingstrategy #quantifiedstrategies #trading #backtesting #short #shorts
=================================
LEARN ABOUT OUR STRATEGIES
@
=================================
©Quantified Strategies - For all business inquiries contact [email protected]
✅ This video is not to be reproduced without prior authorization. The original YouTube video may be distributed & embedded if required. For our private coaching, book a call at [email protected]
=================================
✅ RISK DISCLAIMER
Quantified Strategies (SIA Lofjord) is not an investment advisor. The content and information provided are educational and should not be treated as financial advisory services or investment advice. Trading and investment in securities involve substantial risk of loss and is not recommended for anyone who is not a trained trader or investor – it shall be conducted at your own risk. It is recommended that you never risk more than you are willing to lose. Leverage can lead to substantial losses. Any use of leverage, margin, or shorting is at your discretion. Quantified Strategies (SIA Lofjord) is not responsible for any losses that occur as a result of its content and information.
Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, Since the trades have not been executed, the results may have under or overcompensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs, in general, are also subject to the fact that they are designed with the benefit of hindsight. No representations are made that any account will or is likely to achieve profit or losses similar to those shown.