It took me 10 years to realize that rebalancing was the missing piece of the Stars model. Without it, the common criticism of TQQQ—too volatile, too risky—is absolutely valid. But with rebalancing, risk is managed, and performance is maximized.

Here’s why rebalancing changes the game:

• Controls risk – The percentage of TQQQ can be adjusted to maintain stability.
• Requires diversification – SPY (or a similar asset) acts as the counterbalance, allowing for adjustments.
• Annual strategy – Year-end rebalancing capitalizes on highs and lows, optimizing returns.
• Turns volatility into an advantage – In a down market, you accumulate more TQQQ; in an up market, you lock in gains.

Rebalancing isn’t just a safety measure—it’s the engine behind the Stars model’s outperformance. If you’re ignoring it, you’re missing the full potential of leveraged ETFs.

Would love to hear your thoughts—how do you approach risk management in high-growth portfolios? 📉📈