In this post I want to summarize the performance of our QQQQ model from inception. We recently exited a long position on January 14 2011 and are currently neutral. The QQQQ model is an example of our slow trading systems which identify longer dated trends and stick with them. The key to the model is to avoid major pitfalls and downturns. The model can be either in or out of the market for long periods of time. Most notably when the NASDAQ bubble burst in 2000 the model stayed out of the market while the NASDAQ lost half its value. The model goes long in 2002 and avoids the meltdown in 2008 going long again in 2009. The purpose of this model is identify long term trends. It is worthwhile noting that if you invested $1000,000 in the QQQQ at the end of April 2000 you would still be down over 40% by today. Whereas if you traded the QQQQ ETF using the model you end up 340% over the same period with much less volatility.
