Buy the Dips: Nasdaq 100
Today’s Change (Oct 22, 2026)
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About
A market-timing strategy that tries to buy sharp pullbacks in big Nasdaq stocks using a 3x leveraged fund, and otherwise waits in short-term bonds.
This strategy watches QQQ, a fund tied to big Nasdaq stocks like Apple, Microsoft, Amazon, and Nvidia.
If QQQ has fallen more than 5% over the last 5 trading days, the strategy treats that as a dip. It then buys TQQQ, a much more aggressive fund designed to rise about 3x as much as QQQ in a single day.
But if TQQQ has already jumped more than 5% in the last day, the strategy assumes the rebound may already be underway and avoids chasing it. In that case—and anytime QQQ is not in a big dip—it holds BSV, a steadier short-term bond fund.
Out-of-sample, this dip-buying strategy delivers ~26.6% annualized return vs the S&P 500's ~14.3%, with higher risk-adjusted returns (Sharpe ~1.04, Calmar ~1.17) and lower beta (~0.62). Similar drawdowns, but far greater upside after Nasdaq dips.
1M
3M
6M
YTD
1Y
3Y
Max
Performance
Compared to selected benchmarks
| Alpha | Beta | R2 | R | |
|---|---|---|---|---|
| 0.1 | 0.57 | 0.16 | 0.4 |
Performance Metrics
| Cumulative Return | Annualized Return | Trailing 1M Return | Trailing 3M Return | Sharpe Ratio | |
|---|---|---|---|---|---|
| 861.2% | 14.55% | -0.05% | 3.57% | 0.88 | |
| 1,213.14% | 16.72% | 3.79% | 13.23% | 0.76 |
Initial Investment
$10,000.00
Final Value
$131,313.51Regulatory Fees
$299.26
Total Slippage
$1,190.87
Invest in this strategy
OOS Start Date
Feb 13, 2022
Trading Setting
Daily
Type
Stocks
Category
Dip buying, nasdaq-100, leveraged etf, tactical allocation, short-term bonds, market timing, tech/growth