What Does this QQQ Trading Strategy Say? (long or short)

Corona Del Mar, CA

Howdy Friend!

Let's have some fun today...

...is the QQQ trading stategy I'm about to discuss on a buy or sell?

Take a guess.

OK, let's continue...

I talk about timing the S&P 500 using the Smart Money, and this question comes up often:

"Does the Smart Money work on the NASDAQ 100"?

The answer is no, but I do have a sound trading strategy for "pairs switching" between QQQ (long NASDAQ 100) and PSQ (short NASDAQ 100).

// Quick aside: I'll be honest. I didn't build the strategy -- The Boss Ai strategy builder did. //

The reason I even bring this strategy up is because of how well it did during the past year which was completely out of sample (meaning the Ai did NOT optimize the trading rules and settings on that period of time).

I know it's kinda hard to see, but this strategy was dodging and weaving through these recent declines and reversals like Emmitt Smith in his prime.

It also switched to PSQ a number of times, making BIG wins during the Cvd-19 crisis.

PSQ makes money when the NASDAQ 100 falls. But this strategy wasn't invented until May of 2020.

Did it go bust? Or did that careful separation of in-sample and out-of-sample make it robust?

Let's take a look shall we?

Clearly its out-performing still, just as the careful testing said it would.

What's it secret?

Well, I can tell you that it's a rather simple strategy (most rules can be written on the back of a napkin).

One of the rules is unusual because it starts a timer when a new high and low is hit.

There's also this strange timing mechanism that doesn't allow it to buy QQQ if there's too much recent volatility.

Whenever I look at these Ai strategies, I have to scratch my head for a minute because they often doesn't make sense to me.

I suppose that's the secret of why they work so well and beat human-designed strategies right?

Oh yeah...earlier, I asked you to guess if QQQ was on a buy or sell with this strategy.

I hope you didn't peak...

It's on a buy.

Hey, that was kinda fun. Maybe we should do this again?

Disclaimer: The results listed herein are based on hypothetical trades. Plainly speaking, these trades were not actually executed. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under (or over) compensated for the impact, if any, of certain market factors such as lack of liquidity. You may have done better or worse than the results portrayed.