u/Gehrman_JoinsTheHunt

I like JD heritage, but just can’t quite love it. The nose is incredible though - marshmallow, cinnamon, toffee for days

The market recovered to new highs in April, as did the leveraged plans here. As of yesterday's close, 9Sig is the first of these leveraged strategies to achieve 100% total return since the project began in March 2024. This plan has recently made large gains after buying TQQQ heavily in the Q2 rebalance. The timing may seem prescient given the quick recovery since, but that was pure luck; just like last April, the bottom happened to coincide almost perfectly with 9Sig's pre-defined quarterly schedule.

 

The 200-day Moving Average plan closed above its MA on April 8th, following roughly 3 weeks of trading below the average. This particular rotation resulted in -4.5% underperformance versus a buy-and-hold SSO strategy. This is essentially the cost of insurance. No strategy will win every time, but it will be nice to see a cycle where the flight to safety is profitable.

 

HFEA is also back to previous highs, although less impressively so. Its TMF hedge continues to struggle due to pressure from rates and inflation uncertainty.

 

The train rolls on - rules will be followed, and emotions will be ignored. Thanks to all for following along! 

 

Current status:

 

HFEA

• Current allocation has drifted to UPRO 63% / TMF 37%.
• At the end of Q2, will rebalance back to target allocation UPRO 55% / TMF 45%.

 

 

9Sig

• The 9% growth goal is for TQQQ to finish the quarter @ $47.23 or better.
• Current TQQQ price is $63.54; the resulting TQQQ balance surplus is $4,501 above the quarterly goal.
• Will rebalance next on June 29th per The Kelly Letter schedule; at that time I will either "buy up" any shortfall or "sell down" any surplus in the TQQQ balance.

 

S&P 2x (SSO) 200-d Leverage Rotation Strategy

• Last action on April 8 2026: The underlying S&P 500 (6,783) closed above its 200-day moving average (6,655) on April 8th. Exited BIL at market open on April 9 2026. Invested the full balance ($13,498) in SSO @ $55.76/share.
• The full balance will remain invested in SSO until the S&P 500 closes below its 200-day MA. Once that cross happens, I will sell all SSO and buy BIL the following day, per the rotation strategy from Leverage for the Long Run .

 

  

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Background 

May 2026 update to my original post from March 2024, where I started 3 different long-term leveraged strategies. Each portfolio began with a $10,000 initial balance and has been followed strictly. There have been no additional contributions, and all dividends were reinvested. To serve as the control group, a $10,000 buy-and-hold investment was made into an unleveraged S&P 500 Index Fund (FXAIX) at the same time. This project is not a simulation - all data since the beginning represents actual, live investments with real money.