Quantitative Trading Strategies
TW_v4_QQQ - Long Only
7 years | 25.86% CAGR | 21.4% max drawdown
Strategy Description
Our TW_v4_QQQ strategy is trading in the Invesco QQQ Trust (QQQ), one of the most liquid ETFs available. This long-only short-term swing trading strategy dynamically positions itself for high-probability long trades. It capitalizes on market fluctuations while applying robust risk management techniques.
The strategy outperforms in higher volatility environments and keeps up with QQQ gains during prolonged uptrends. The overview data is based on strategy performance using no leverage.
The key benefit of this algorithm is to retain robust gains while reducing drawdowns, and it does this well. While QQQ’s maximum drawdown is 32.67%, the trading strategy reduces this by roughly a third to 21.4% maximum drawdown.
Performance (zero leverage in Strategy)
The Drawdown chart above provides a clear comparison between the strategy’s drawdowns and the benchmark’s drawdowns. It visually emphasizes how the strategy significantly limits losses during market declines. By maintaining smaller drawdowns compared to the benchmark, the strategy demonstrates robust risk management and superior capital preservation, ensuring better recovery potential after market downturns.
Building on this, the Relative Drawdown Performance chart highlights the strategy’s consistent outperformance in terms of risk management. Values below identify periods where the benchmark has a greater drawdown than the strategy.
This dual analysis provides compelling evidence of the strategy’s advantage in reducing risk and stabilizing returns, making it a good choice for long-term investors seeking capital preservation and reduced portfolio volatility.
Applying Leverage (here max 50%)
Below the same strategy with up to 50% (1:1.5) leverage applied. Using leverage increases the CAGR to 40.39%, the MaxDD to 31.60%, and the cumulative return to 1,046% over 7 years, so roughly 10x the initial capital.
The strategy can me modified further to include scaling, which will significantly enhance returns, but also increase drawdowns
Fees
Our fee structure is transparent, fair, and aligned with your success:
- One-time fee of $10,000.
- Performance Fee Tiers:
- 15% for accounts <$100,000.
- 10% for accounts $100,000+
- High Watermark Rule: Performance fees are charged only on net profits exceeding the previous highest balance. You’ll never pay fees twice on the same profits.
- Minimum Investment: $20,000.
Serious investors direct inquiries to sales@tradingwhale.io
Past performance is NOT indicative of future performance.
TradingWhale provides trading tools and education. In no way, shape or form do we provide trading advice, nor are our trading signals or strategies to be interpreted as such. By using our signals and strategies you take full responsibility for the results of your own trading. Using leverage in trading amplifies risks and rewards, including the risk of total loss of principal and margin calls.
Trading can result in the loss of 100% of your invested capital.