When I wrote Earn Twice the S&P, I initially envisioned TQQQ allocations decreasing as investors aged and increasing based on risk tolerance. However, with Stars being a buy-and-hold strategy, I’ve come to a key realization: since its accuracy is near 100%, the actual risk is minimal-almost nonexistent.

Traditional financial advisors argue that TQQQ’s volatility introduces risk, but that assumes selling at the bottom. In reality, Stars embraces market fluctuations, doubling down rather than locking in losses.

This changes everything. If there’s no real risk, then the best version of Stars is simply the one with the highest return. Among the most profitable versions:

• (30/60) – Rebalance to 30% unless TQQQ drops 40%, then rebalance to 60%.
• (40/80) – Similar approach but with a higher allocation.
• (40/40) – A balanced, high-growth strategy.

Both (30/60) and (40/80) require a large portion of the portfolio, limiting flexibility for other strategies like Seedings, where the goal is to achieve 100% annual returns.

That’s why my preferred version is (40/40)-delivering a 30% annualized return over 14 years and outperforming SPY by 17 percentage points.

For those looking to maximize long-term gains while keeping their portfolio dynamic, (40/40) might just be the optimal choice.