SQQQ
ProShares UltraPro Short QQQ
stock NASDAQ ETF

This is a lot of work to share all these details and thank you for putting in the time.
I am very interested in your strategy and am working on a similar mean reversion strategy with TQQQ and SQQQ. I am only getting started but it’s the first time I’ve even sniffed a little bit of edge.
I have no dev or programming background, no finance background, but this stuff is all I think about. I am so appreciative of people like you who are willing to share, I really needed this today. I cannot wait for the day to pay it back to the community to those who need it.

You could take a position in $SQQQ if you want to short the market

I am feeling the same way, but reluctant to sell a few due to my cost basis being low, such as Oracle $48, Apple $112, NVDA $96…all associated with the AI conundrum. I am also holding TQQQ with the bulk at $5 cost basis, so little risk ahead since I alternate between SQQQ for dramatic moves to generate additional profits. Everything seems stagnant, uncertain and volatile due to conflicting data and an irresponsible orange buffoon making constant drama and turmoil.

Bro if it’s gonna crash and you follow market sentiment daily you can dca SQQQ all the way down.

Hey! First of all — please excuse any strange wording, English is not my native language and I write through a translator.
You understood everything correctly — I used to hedge with a collar (selling a call to partially or fully finance the protective long put). It definitely reduces the risk exposure.
Later I came to a different idea:
**sell the call consistently**, but **buy the protective put only during the decline phase**, when the protection is truly needed. I built my own backtesting system for option strategies and tested various scenarios around that.
After that, I expanded the strategy into a Wheel variation, combined with **holding the underlying during bullish phases**. The ratio between the stock position and sold puts changes depending on the market regime. The underlying is also conveniently protected using a long put.
In my current version, the protective put is purchased when the phase switches to neutral (or bearish). If the market moves back into a bullish phase and the danger passes, the put can be sold as no longer needed — sometimes recovering most of the cost, sometimes all.
I’m planning to write a large post explaining my detailed approach to the Wheel and how the phase logic integrates into it.
Right now, I’m working on a way to **generate income even during bearish phases** — either via long puts or possibly using SQQQ. I still need to test this properly.
For that part, I’m planning to use **Hidden Markov Models** to detect regime-switching and reversal points. In shorting, the real challenge is not entry — it’s finding the right exit.

So I like leverage in broad index funds as part of a buy and hold strategy as long there is a clearly defined strategy including uncorrelated hedges like bonds and gold or a asset rotation strategy like 200 SMA or both and the investor is young with a long time horizon. I like total portfolio leverage to fall somewhere between 1.2-1.5 and I really prefer to avoid leveraged sectors or single stock ETFs, 3x funds, and full inverse ETFs. To me this portfolio breaks EVERY cardinal rule of buy and hold leveraged investing. This port is all over the place, leverage is WAY too high (im not gonna do the math but it looks to be somewhere around 2.8 LR unhedged. Holding a fund (tqqq) and its direct inverse is just silly. The 5% SQQQ is you paying the ER plus the implied cost of leverage to cancel out 5% of TQQQ that you are already own which you are also paying for. Also why own SOXL just because its semis? Thats a dumb reason have you seen the vol on this thing? Its even less stable than TQQQ. Owning leveraged version of sectors is NOT the same as owning a sector unleveraged. Timing in sectors AND timing matters in leverage owning both sectors and leverage long term with no plan is a guaranteed way to lose LOTS of money. Also sectors are just stock picking lite. Its a losing strategy to pick yesterdays winners. Sectors are cyclical so if something won yesterday its almost guaranteed to eventually lose tomorrow. This portfolio screams inexperience plus market timing. You might as well just ditch this entire port and go all in on SVIX , YOLO! (I’m kidding please dont do this). There is no saving this portfolio sell it into cash before you incur capital gains or take massive loses.
Next invest ur money in VT while you research investing. After a while if you ABSOLUTELY decide being in SOME leverage is right for you go with a small position in SSO or QLD with GLDM / ZROZ to hedge OR go with asmall position in stacked ETFs that combine assets for you such as RSSB / GDE thats another way to get similar coverage for a bit cheaper. Leverage isnt a magic bullet that will make you rich, you are paying a hidden cost for the leverage aswell as opening yourself up to the risk of taking magnified loses in exchange for having access to slightly more capital than you otherwise would have to invest.

This is a lot of work to share all these details and thank you for putting in the time.
I am very interested in your strategy and am working on a similar mean reversion strategy with TQQQ and SQQQ. I am only getting started but it’s the first time I’ve even sniffed a little bit of edge.
I have no dev or programming background, no finance background, but this stuff is all I think about. I am so appreciative of people like you who are willing to share, I really needed this today. I cannot wait for the day to pay it back to the community to those who need it.

You could take a position in $SQQQ if you want to short the market

I am feeling the same way, but reluctant to sell a few due to my cost basis being low, such as Oracle $48, Apple $112, NVDA $96…all associated with the AI conundrum. I am also holding TQQQ with the bulk at $5 cost basis, so little risk ahead since I alternate between SQQQ for dramatic moves to generate additional profits. Everything seems stagnant, uncertain and volatile due to conflicting data and an irresponsible orange buffoon making constant drama and turmoil.

Bro if it’s gonna crash and you follow market sentiment daily you can dca SQQQ all the way down.

Hey! First of all — please excuse any strange wording, English is not my native language and I write through a translator.
You understood everything correctly — I used to hedge with a collar (selling a call to partially or fully finance the protective long put). It definitely reduces the risk exposure.
Later I came to a different idea:
**sell the call consistently**, but **buy the protective put only during the decline phase**, when the protection is truly needed. I built my own backtesting system for option strategies and tested various scenarios around that.
After that, I expanded the strategy into a Wheel variation, combined with **holding the underlying during bullish phases**. The ratio between the stock position and sold puts changes depending on the market regime. The underlying is also conveniently protected using a long put.
In my current version, the protective put is purchased when the phase switches to neutral (or bearish). If the market moves back into a bullish phase and the danger passes, the put can be sold as no longer needed — sometimes recovering most of the cost, sometimes all.
I’m planning to write a large post explaining my detailed approach to the Wheel and how the phase logic integrates into it.
Right now, I’m working on a way to **generate income even during bearish phases** — either via long puts or possibly using SQQQ. I still need to test this properly.
For that part, I’m planning to use **Hidden Markov Models** to detect regime-switching and reversal points. In shorting, the real challenge is not entry — it’s finding the right exit.

So I like leverage in broad index funds as part of a buy and hold strategy as long there is a clearly defined strategy including uncorrelated hedges like bonds and gold or a asset rotation strategy like 200 SMA or both and the investor is young with a long time horizon. I like total portfolio leverage to fall somewhere between 1.2-1.5 and I really prefer to avoid leveraged sectors or single stock ETFs, 3x funds, and full inverse ETFs. To me this portfolio breaks EVERY cardinal rule of buy and hold leveraged investing. This port is all over the place, leverage is WAY too high (im not gonna do the math but it looks to be somewhere around 2.8 LR unhedged. Holding a fund (tqqq) and its direct inverse is just silly. The 5% SQQQ is you paying the ER plus the implied cost of leverage to cancel out 5% of TQQQ that you are already own which you are also paying for. Also why own SOXL just because its semis? Thats a dumb reason have you seen the vol on this thing? Its even less stable than TQQQ. Owning leveraged version of sectors is NOT the same as owning a sector unleveraged. Timing in sectors AND timing matters in leverage owning both sectors and leverage long term with no plan is a guaranteed way to lose LOTS of money. Also sectors are just stock picking lite. Its a losing strategy to pick yesterdays winners. Sectors are cyclical so if something won yesterday its almost guaranteed to eventually lose tomorrow. This portfolio screams inexperience plus market timing. You might as well just ditch this entire port and go all in on SVIX , YOLO! (I’m kidding please dont do this). There is no saving this portfolio sell it into cash before you incur capital gains or take massive loses.
Next invest ur money in VT while you research investing. After a while if you ABSOLUTELY decide being in SOME leverage is right for you go with a small position in SSO or QLD with GLDM / ZROZ to hedge OR go with asmall position in stacked ETFs that combine assets for you such as RSSB / GDE thats another way to get similar coverage for a bit cheaper. Leverage isnt a magic bullet that will make you rich, you are paying a hidden cost for the leverage aswell as opening yourself up to the risk of taking magnified loses in exchange for having access to slightly more capital than you otherwise would have to invest.

As others said, holding both TQQQ and SQQQ doesn't make sense. It would be strictly better to just hold SQQQ as cash or, if you're really worried, back either back off the leverage or reduce your position. 
With how much you're doing leverage I'm surprised you didn't have SOXL instead of SOXQ or something like UTSL instead of XLU, etc.

3x leverage is too much for this play long term. I’ve had the same thought and the decay on the ETF is just to much even in a crazy bear market. Swing trade SQQQ or if you’re really committed to this play, buy puts on TQQQ and take advantage of the natural decay on the other end.

Pull back the chart to max on SQQQ. Now do the same for QQQ. History shows that the market / NASDAQ not only always goes up in the long term, it does so at around 10-15% per year on average. If you try to inverse that, you **will** lose. Just look how much SQQQ has decayed over its lifetime. Given enough time, any position in SQQQ will effectively approach 0.
An inverse ETF like SQQQ is only meant to be held for a brief period when the market goes down, and *has to be sold* as soon as the market starts to go up again. The problem with that is you have to nail your timing almost perfectly.
Also, even if *you* think there will be "crazy" times ahead, you're probably wrong, or even if you're right you might not play your cards correctly.
My personal read is that right now is the time to be bullish, so I would completely avoid any inverse ETFs.

SQQQ is a short term hedge not a buy-and-hold

It can work as a hedge, if that's something you want to do. I wouldn't take a large position in it, personally. Due to the triple leverage you can downward hedge your investments with only 1/3 the capital of a normal short. Say you have 100k in QQQ, you could put 33k in SQQQ and, in theory, your total balance should remain roughly the same regardless of whether QQQ goes up or down. Just know that if the market continues to go up you are missing out on a lot of gains from having capital tied up in SQQQ.

It's in the prospectus that holding sqqq overnight is a bad idea.. they just did a reverse split not too long ago.. it goes down way more often than it goes up.. inverse leveraged etfs are "widow makers" ... if anything, you're better off buying calls on SQQQ to limit your risk exposure.

so what would it look like if you know what you were doing? are leveraged etfs just something that require much more knowledge to successfully profit off of? in my mind it was just as simple as “if you should invest in QQQ when the stock market is doing well, you should invest in SQQQ if you think the market is about to collapse”

No. And I hold a lot of leveraged ETF's.
I'd rather go to the casino than buy SQQQ.