TQQQ Strategy : Dollar Cost Averaging and Profit Trimming (With Sample Trades)

 

TQQQ Strategy : Dollar Cost Averaging and Profit Trimming (With Sample Trades)

In this blog, we share our strategy for investing in TQQQ through dollar-cost averaging and regularly booking profits. This content is for informational purposes only and does not constitute financial advice. We are not responsible for any losses you may incur by following this approach.

TQQQ (ProShares UltraPro QQQ) is a leveraged ETF designed to deliver three times the daily returns of the Nasdaq-100 index, which is tracked by QQQ. While QQQ moves in line with the Nasdaq-100, TQQQ amplifies those daily movements by a factor of three. This means if the Nasdaq-100 rises 1% in a day, TQQQ is designed to rise approximately 3%, and similarly, a 1% drop would lead to a 3% decline in TQQQ. While this leverage can generate higher short-term gains, it also increases risk, especially during volatile markets. 

TQQQ is generally considered a short-term trading instrument, given its susceptibility to volatility decay and the impact of daily compounding. However, we've taken a long-term perspective by applying a systematic dollar-cost averaging strategy. While not conventional, this approach has delivered strong results for us, and we're sharing the strategy that has consistently worked over time.

New to Leveraged ETFs?

If you're completely new to leveraged ETFs and want to understand the risks involved check here

Leveraged ETFs

Strategy Overview

This strategy is explained in detail here 

TQQQ DCA & Trim Stragey

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Sample Portfolio: Focused on TQQQ

This is a sample portfolio where TQQQ capital represents a smaller portion of our overall trading capital.

• Base capital in TQQQ bucket: $10,000
• Monthly incremental capital: $1,000
• Daily buys: 5–10% of base capital, depending on technical setup. 
• Two scheduled buys per month apart from daily 5-10% buy : $500 each
• No buys near market supply zones
• Limit sells: Range from 1% to 50%, depending on ETF price level
• Cautious staggered buys below QQQ 50 DMA.  Aggressive daily buys above the QQQ 50 DMA.

Dollar-Cost Averaging (DCA) is essential. 

For example:

If we purchase 10 units at $60, we aim to buy 12 units at $50, and 15 units at $40. As our average buy price decreases, we widen our limit sell spreads accordingly.

For instance:

• Units bought at $40 might have limit sell orders ranging from $41 to $80.
• Units bought at $70 might have tighter limit sell orders between $71 and $90.

We always keep a few runners to capitalize on larger moves.

Daily Trades

Click here for the spreadsheet link

This strategy is explained in detail here 

TQQQ DCA & Trim Stragey

Long Term Return of TQQQ and other top leveraged ETFs including correction time Views

This table presents the long-term returns of a $1,000 monthly investment in SPY, QQQ, and their 2x and 3x leveraged ETFs, without any adjustments or trimming. It also highlights the fluctuations in returns during the recent market correction from January to April 2025.

If you're completely new to leveraged ETFs and want to understand the risks involved check here

Leveraged ETFs

Disclaimer

This content is for informational purposes only and does not constitute financial advice. We are not responsible for any losses you may incur by following this approach.