It comes down to the balance between SPY and TQQQ, along with disciplined rebalancing. SPY averaged 13% annually, while TQQQ returned 40%. A 60/40 blend looks like it should average 24%, but in reality, without rebalancing, the concentration of TQQQ quickly gets too high, creating excessive drawdowns.

That’s where the real magic happens: rebalancing. By trimming TQQQ after gains and reallocating to SPY, then reversing the process during corrections, the model captures profits and buys at deep discounts. For example, when TQQQ is down 80% while SPY is down 20%, the model buys TQQQ at 20 cents on the dollar—resulting in six times the shares at the next market high.

This dynamic approach is what fuels the Stars model’s remarkable long-term results.