On most days SPY, TQQQ, and SQQQ are the three most actively traded instruments. The TQQQ daily return is three times QQQ most days. Three years ago TQQQ rose 800% in 18 months so time decay is not a problem. TQQQ lays off its risk with derivatives, stocks and against SQQQ positions.

TQQQ resets every day meaning the next day you start with 100% at a lower price. Each day is a separate move. The largest one day move is about 15%. A very large correction occurs over many months. ‘00-‘02 took three years for a total correction of 33% on the S&P.

The annual volatility of TQQQ varies between 0 and 8. The average volatility is 4. At market highs the volatility can be low. In a correction it is about average and coming out of a bottom it is very high. That is what you want. Coming out of the low everyone wants to own the fastest appreciating stocks.

The Stars model is based on the concept of rebalancing a volatile ETF against an ETF that is less volatile. This allows for the purchase of many more shares of the volatile ETF at very low prices at the market bottom.

While other long term strategies struggle to beat the S&P, Stars outperforms it by a factor of 17. Where is the risk in that?