QQQ Trading Strategy That Beats the Market (Proven Backtest Results)

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Due to tqqq leverage during major crash where it might drop 85% or more, it would not just need 85% to bounce back to its original price. It would need to rally almost 600%. Keep that in mind.

The only problem is, TQQQ hasn't yet experienced a massive crash like 1987 or 2008. (2022 was smaller than those)

Sure but this is exclusive of the tax you'd pay on profits every time you sold out.

When I back test this using Pinescript in Tradingview I get different results for the QQQ. For Jan 1 2000 to December 31 2023 without factoring in any commissions or slippage, using the 200 SMA for buy and sell I get a total profit of 500.78% over the 24 year period and it shows it as being about the same as the buy and hold. With modest commission and slippage it is more like 470% and worse than the buy and hold. Am I missing something?.

Invest into XLK @ 60% and TQQQ @ 40% for an average annualized return of ~ 33.1%....and expect between a 50% -65% drawdown!

my backtested strategy for TQQQ is showing a 20,380% return since 2010, starting with 10K invested, and currently at $2,282,559 in profits right now. Might start a separate public account and program a bot to trade the strategy, start a channel to follow the TQQQ bot trading to see if it works in real life. Could be a fun experiment. Or a sad one lmao

Looking at a chart of TLT over the last 14 years, seems like terrible instrument during any time period. Also, if you applied the "stay out" season strategy for the last 10 years (July through Oct), you'd have missed out on large gains for a majority of those years. This combined with the compounded risk of TQQQ and the overly complex manual and analytical management of it leads me to judge this is all great in theory, but unlikely reliable in practice.

You also have the MSCI world 2x leveraged. It has lower volatility then the insane QQQ and it's buy and hold is 14,8% during the last 10 years, you should be able to make a very nice strategy to reduce risk and increase cagr.

Were the back tests run based on the closing price for the day, next days open or signal value?

Just picked up on the recent chatter on TQQQ, and I must admit until now, most videos really don’t capture this. I’ve been mechanically trading this for 8 years, in a regime agnostic system with primarily focuses on risk. And finally I can see the parallels to Les’s book and my development of my algo. I’ve been forward testing “similar” system for 8 years and defintely confirm what Les is conveying in his book/interviews. Refreshing to hear and see that someone is actually bringing content out that has had not only research put into it, but blows away the ridiculous myths traders tend to spout. Keep it up Les and appreciate your input into the trading community.

Intro until 4:45.

Thx a lot! Excelent content!

Yes the 200DMA Is also the strategy of Paul Trudor Jones !

20 50 200 week

I like the weight of evidence approach but I think some of these could be coincidental or may be due to variables that don’t hold moving forward.

Some of this is “hind casting” and “curve fitting” and won’t necessarily hold true moving forward

This market has been straight ruthless. Every move I make feels like fighting shadows enter a trade, and boom, the market flips on me.
‎
‎Draining fr😢. I gotta break this cycle. Any solid one on one mentor out there pls? Willing to pay, just need real guidance before I mess up my acct Holding rn got me nervous.

This market has been straight ruthless. Every move I make feels like fighting shadows enter a trade, and boom, the market flips on me.
‎
‎Draining fr😢. I gotta break this cycle. Any solid one on one mentor out there pls? Willing to pay, just need real guidance before I mess up my acct Holding rn got me nervous.

I have made a lot of money in TQQQ over the last 8 years using a similar approach but using different indicators. I agree that there is money to be made here with the right approach. My best year was up 49% but could have made much more if I was less cautious. I hate to take risk or lose money.

What about the decay associated with TQQQ? That means long term holders will actually be in a loss.

Trading has truly transformed my life. I started with nothing but curiosity and a leap of faith in the financial markets. Despite challenges, I stayed committed, learning and growing with each step.
Today, I'm proud to say that trading not only gave me financial freedom but also the means to own a house. It's been a rewarding journey, and I'm grateful for the opportunities it's brought my way

This strategies are really interesting to maximize return and minimize the Drawdown, i appreciate that!

I ran a backtest on etfreplay for qqq from Dec 31, 2002 - Sep 19, 2025. Buy and hold returned 2,659.3% 225 day moving average returned 1,227%. Final analysis, buy qqq and don't look at it for 20 years. It doesn't get any simpler.

Bought the book. Useful just for newbies. I think I had very high expectations, but they weren't met. The bottom line is to use the 20-week (100-day) moving average and ride out the drawdowns. I think there are better strategies. For example, see what Vibha Jha uses to trade TQQQ:

ENTER RULES:

Option 1: Enter with a full position on an IBD identified as a Follow Through Day. Option 2: Enter with a half position when there are 3 days of higher highs and higher lows without a Follow Through Day. Use a Stop Loss at the undercut of the first-day rally.

EXIT RULES: Exit at two closing days below the 21 EMA or when 4 or 5 Distribution Days have accumulated. Or exit at all-time highs.

If you don't know anything about trading, this may be helpful, but if you have several years of experience, you won't find anything new.

He is a living history of market, presenting him here is more that right.

I do something similar with SPY and UPRO. The one thing you have to be careful of is a "black swan" event, like Black Monday in 1987. Although rare, such an event would wipe out about 75% of your position.

Hindsight 20/20. It worked because of the strong uptrend. It would have never worked if the 225 day MA was mostly in a downtrend over that back test period.

Having bought and read through this book thoroughly, it should be noted that in the moving average strategy, the 225dma actually performed over 1000pc better when day of the cross was applied, the one you mention is selling at the end of the month. This is based on the tqqq instrument.

Sadly, we're now at all-time highs for TQQQ. Otherwise I'D BE IN!! Just wait for another (decent) market crash - and it will become relevant again

While I understand the authors zeal for tech stocks (QQQ) I think you should consider this:
1. Invest $100,000 24 years ago.

2.Making 700% over in tech stocks, 24 years is a return rate of 9.43% per year for a total of $860,000

3. If you invested in a total stock market index fund for the last 24 years, you would have yielded a return of 10%+ and had $985,000 at the end.

It should be noted, no trading would have been required as these are index funds.

Any other fees and taxes would be the same on either a QQQ index fund or a total stock market index fund. For the math guys, these are variables in the equation that you would cancel out.

Tech is not the bargain you think it is. Look at what a difference a 0.57% yearly increase in returns (10% vs 9.43%) makes in total account balance. Before you use a strategy, quickly run the numbers first.

How about using the 200 SMA instead? I cant even find 225 dma anywhere

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I bought this book based on this video. It's LOADED with good info.

The most disturbing thing in the comment section of this video is the "rant" by people who don't understand the matter and just feel an urge to express their frustration not having made these percentage gains in the past. Me too by the way but I can handle it.

why 225 day moving average, why not 226.87 day moving average and 78.54% position sizing results would improve further

I have personally been impressed with Kathy Wood's "gift" of being one of the WORST investors ever, as evidenced by AARK, and yet manages to appear on virtually every business channel and be quoted in every business site/magazine as a tech market expert seemingly daily. Even more impressive than Jim Kramer, also "gifted" in this regard.

Can I make thumbnails for you

Sounds like a great time saver. Not chasing a million other ideas.Just keep to the strategy.

Fantastic insights If you’re ready to put systematic strategies like these into action, trade smarter with DuraMarkets – low spreads, fast execution, and the perfect platform for disciplined investors!

I just ran the statigy tester on tradingview using the daily chart and the 225DMA as you have shown here and it lists the following:

82 total trades, 24 winning trades and 58 losing trades, avg winning trade was 15.94% to the average losing trade of 2.27%, average P&L for the 82 trades 3.09%, this was from 1999 to today.

How much have you been paid to promote Mason?

With all due respect, there wasn’t a word spoken about position sizing which is far more important then entries and exits criteria

Backtests on QQQ strategies can be eye opening, but the real edge comes from applying them with consistency. Pairing this with macro insights on Fastbull makes it easier to align setups with broader market flows.

THANSK FOR SHARING

What if you use the 225MA QQQ trade signals for trading the TQQQ? I can test it.

Cathy gets roasted.