How to deploy capital into the Stars model—without overexposing yourself to risk

  1. Set your maximum commitment. Example: $100,000.
  2. Cap your initial TQQQ exposure at 40 %. That’s $40,000 max. Buy TQQQ only when the price is below last year’s close of $79.
  3. Keep the remaining $60,000 on the sidelines for now.
  4. Rebalance at year-end to 40 % TQQQ / 60 % SPY. At this point you can deploy some or all of the remaining funds in that same 40/60 split.
  5. Alternative on-ramp: build up TQQQ to the $40,000 cap first, then add SPY at year-end.

Why this approach works

  • Defined risk — TQQQ never exceeds 40 % of your portfolio.
  • Systematic discipline — annual rebalancing forces you to trim winners and add to laggards.
  • Flexibility — choose the entry path that matches your temperament.

Ready to reduce guesswork and add clarity to your portfolio? The Stars model’s rule-based structure could be your next smart move.