When working with the Stars model, these two terms often come up, and understanding them is key. A version defines the percent of TQQQ used when rebalancing. For example, the (20/40) version means 20% TQQQ is used for annual rebalancing at year end, but if TQQQ is down 40% from the previous year’s close, then 40% TQQQ is used instead.

A variation defines how a version is applied. All variations use the best-performing version of the Stars model—currently the (40/60) version. Variations are tailored to meet investor objectives. Two introduced so far are Social Security Security and The 10% Solution, with more variations coming soon to give investors additional options.

The Stars model offers versions and variations to optimize returns, reduce risk, and match investor goals. Full results—including performance by market type, drawdowns, and compound values—are available on my website.

👉 Using Stars, every investor should be able to find a way to benefit from this incredible model.