TQQQ-SQQQ Trading
with Machine Learning
![](https://agileml.net/3xqqq.com/wp-content/uploads/2023/04/8-diffuse-1024x512.jpg)
I've analyzed 74 financial news headlines dated July 23-24, 2024. Here's my objective and unbiased market sentiment analysis: **Market Sentiment Analysis:** The overall market sentiment is NEUTRAL with a rating of 5 out of 10. The headlines indicate a mix of positive and negative sentiments, with some companies reporting strong earnings while others faced disappointing results. The technology sector, particularly AI-related stocks, took a hit due to concerns about the pace of growth. **Opportunities for Experienced Traders:** 1. Short-selling tech stocks that are heavily reliant on AI, such as those in the Nasdaq. 2. Going long on companies with strong earnings reports and resilient business models, like those in the S&P 500 or Russell indices. **Market Strategy:** For near-term trading (next few days), I recommend a cautious approach, focusing on mean reversion and playing the trends. For longer-term trading (weeks to months), consider a contrarian strategy, betting on undervalued companies that have been hit hard by the market. **Word Count:** 106 words Please note that this analysis is based solely on the provided headlines and may not reflect the full range of market conditions or sentiment at the time. It's essential for traders to stay informed and adapt their strategies accordingly. (2024-07-24) NewsSnoop.com
“Use of TQQQ allows day traders to fully exploit the benefit of the Opening Range Breakout (ORB) Day Trading Strategy.“
The Pair Trade investment trading strategy is used in this Machine Learning use case. Also known as Pairs Trade, two highly correlated securities are selected, matching a long position with a short position. It is a market neutral strategy, enabling traders to profit in all market conditions.
Two highly correlated ETFs are used:
- TQQQ: ProShares UltraPro QQQ (the long position) seeks daily investment results that correspond to three times (3x) the daily performance of the Nasdaq-100 Index.
- SQQQ: ProShares UltraPro Short QQQ (the short position) seeks daily investment results that correspond to three times the inverse (-3x) of the daily performance of the Nasdaq-100 Index.
“The resulting portfolio would have earned an outstanding return of 1,484% during the same period of 2016 to 2023, while an investment in the QQQ ETF would have earned 169% annualized.”
Since machine learning algorithms are unconstrained, the two highly correlated securities (TQQQ, SQQQ) are enhanced with three (3) additional correlated ETFs:
- QQQ: Invesco QQQ is an exchange-traded fund that tracks the Nasdaq-100 Index. The Index includes the 100 largest non-financial companies listed on the Nasdaq based on market cap.
- QLD: ProShares Ultra QQQ seeks daily investment results that correspond to two times (2x) the daily performance of the Nasdaq-100 Index.
- QID: ProShares UltraShort QQQ seeks daily investment results that correspond to two times the inverse (-2x) of the daily performance of the Nasdaq-100 Index.
“Most day traders flop. These researchers say one popular strategy generated 46% per-year returns.“
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Updated 2024-07-27 01:20:19