TQQQ Strategy: Dollar Cost Averaging and Profit Trimming

In this blog, we share our strategy for investing in TQQQ through dollar-cost averaging and regularly booking profits. This content is for informational purposes only and does not constitute financial advice.

📌 What is TQQQ?

TQQQ (ProShares UltraPro QQQ) is a leveraged ETF designed to deliver three times the daily returns of the Nasdaq-100 index. If QQQ rises 1% in a day, TQQQ is designed to rise 3%. Similarly, a 1% drop results in a 3% decline. This leverage offers high reward potential but also amplifies risk — especially in volatile markets.

⚠️ Long-Term Use of a Short-Term Instrument

Though TQQQ is intended for short-term trading, we've applied a disciplined long-term approach using dollar-cost averaging and profit trimming. This strategy has delivered consistent results for us over time.

📘 New to Leveraged ETFs?

If you're new to leveraged ETFs and want to understand the risks involved, check here: Leveraged ETFs Explained

💼 Sample Portfolio

Starting capital: $10,000 in the TQQQ bucket
Monthly additions: $1,000
Daily buys: 5–10% of base capital depending on market setup
Two planned buys per month: $500 each
No buys near market supply zones
Limit sells range from 1% to 50% depending on price levels
More aggressive buying above QQQ 50 DMA, cautious below

🔁 Dollar-Cost Averaging Example

If we buy 10 units at $60, the next buys might be:

12 units at $50
15 units at $40

Lower average cost → wider profit range. Example:

Units bought at $40: sell between $41 and $80
Units bought at $70: sell between $71 and $90

We always retain a few runners for big upside potential.

📅 Daily Trades & Logs

📊 Long-Term Return Comparison

This table shows the long-term returns of $1,000 monthly investments in SPY, QQQ, and leveraged versions, including how they performed during the Jan–Apr 2025 correction.

🎥 Watch Our Strategy in Action

📌 Disclaimer

This content is for educational purposes only and does not constitute financial advice. Investing in leveraged ETFs involves risk. Do your own research and consult a financial advisor before acting on any strategy.