I was talking to a veteran trader and they said a way to make money is to put $5k in SQQQ and another $5k into TQQQ, placing a 1% trailing stop loss on both and either one will make you more money than the other loosing the 1% loss. This seems ridiculous if the market is trading sideways like it has in the past – but if we have a downturn or an upturn it would make sense with one thing changed: Have a grid or a “spread” of different trailing stop loss orders – that is to say put $1k in both funds to trigger a sale after a 1% downturn, then the next $1k at 2% downturn. If the market trades sideways you are going to loose money but if we have a correction or a nice win streak you will come out ahead since the funds are both leveraged – even with decay factored in.
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