Because Stars operates as a buy-and-hold model with an 8-year holding period, its accuracy is near 100%, and the risk is near zero. This structure makes lost opportunity cost the key driver in choosing the highest return version of Stars.

🔹 Optimizing the Model

As the TQQQ allocation increases above 40%, the 26-year model value rises—until it flattens around 60%. However, drawdowns also increase, which can impact investor confidence, even though they don’t directly affect returns.

🔹 Finding the Best Balance

The 40/60 version (40% standard allocation, 60% TQQQ) offers the best balance:

✅ 60% higher returns over 26 years than the 40/40 version
✅ 14-year return of 32% with 19% outperformance vs. the S&P
✅ Drawdown remains comparable to the 40/40 model—except in rare back-to-back down years (4% occurrence), where it reaches 67%

Every version of the Stars model is detailed on my website: leeekholm.com under Stars Results.

💡 Want to learn more? Let’s discuss how the Stars model can fit into your strategy. 🚀