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Leveraged ETF research · Research strategy

L06 · Leveraged oversold rebound

Buys short-term oversold readings in an otherwise positive proxy trend.

TQQQ or SPXL, SOXL, and settled cash; QQQ or SPY and SOXX are signal proxiesDailyLeveraged ETF exposure

The idea

How it works

Buys short-term oversold readings in an otherwise positive proxy trend.

Why it might work

Temporary pullbacks in strong trends may rebound.

When it invests

Enter up to 33% in a fund when its proxy's two-day RSI is low and its 50-day average exceeds its 200-day average.

When it exits

Exit after a high RSI reading, a break below the 50-day average, or five holding sessions.

What can go wrong

  • Historical signals can reverse before a delayed order fills.
  • Leveraged fund losses can be large and fast.

Selected research result

L06 · TQQQ + SOXL · v3 base backtest

L06 on TQQQ + SOXL passed the repaired v3 study's historical qualification gates. This is a simulated research result, not live or paper authorization.

Total return44.8%Change in simulated portfolio value over the test.
Annualized return13.2%Yearly compounded return; shown only when supported.
Worst drawdown11.6%Largest fall from an earlier portfolio high.
Sharpe ratio0.92Return relative to variability, under the source study's definition.
Trades66Completed simulated trades, when reported.

Read assumptions and limitations →

Research history

Variants and recorded runs

Repeated and diagnostic runs remain accessible under their tested variant. No run is selected by highest return.

SPXL SOXL1 result
TQQQ SOXL1 result