Buy the Dips NASDAQ
Lets try a strategy where we buy the dips for NASDAQ. What do we count as a dip? Lets say If the 5 day cumulative return is less than -5%. If there is a dip, lets by TQQQ, a 3x leaverages version of NASDAQ. lets also make sure we are not coming out a dip, or if the 1 day return is less then 5%. To do this, we insert a nested If/Else statement inside another If/Else statement to combine the two conditions. For the Else condition, we can leave empty, to just hold cash and do nothing.
Does it work?
wow! this strategy is on par with NASDAQ itself, and even narrowly beating out S&P 500 from the years 2015-2022, while only holding TQQQ a tiny percentage of the time, as we can see from the performance graph. This strategy is based on the idea of mean reversion, which states that a price has a tendancy to revert to its mean, after a big movement, like a dip.
