/biz/ - Business & Finance

>>52894493
I trade futures and have done a few backtests comparing /NQ contracts vs TQQQ and if you hold the contracts at about 2.2x leverage and rebalance up daily when the market is up but don't rebalance down when the market drops then in the bull market between 2010 and 2020 you would have been about equal with TQQQ in gains. Obviously if you leverage higher you would beat TQQQ but the risk comes from holding the leverage in a market drop. If you're 2.2x and the market goes down like 45% or something you lose it all and that's if you have the stomach to hold that long. Many people would capitulate long before that and usually the market goes back up even from 15-20% dips so you stand a good chance of underperforming TQQQ in the long term. It's viable though if you have iron discipline.
I use my futures account for swing trading though and I use the S&P, Nasdaq, Russell, Dow, mid-caps, European indexes (there's like 4 that matter), the Nikkei, the Indian Nifty 50 index, the Hong Kong Hang Seng index, the Australian index, and the Taiwan index for equity longs. Usually one of those markets is presenting a good swing trade opportunity for me to get into. When all equity markets are not to my liking I trade European VSTOXX volatility contracts. That's what I'm in right now. When the VIX rises those rise. I'll hold my VSTOXX until VIX gets over 30 or so then I'll get out and start looking at getting into equities again wash rinse repeat.
Pic related is what I trade