u/JonSnowL2

I’ve been going back and forth with AI over the past few days trying to develop plan to play around with leveraged ETFs. I already follow Sig 9, in my Roth IRA I just started last year so it’s relatively small amount. In a portion of my 401k I wanted to use another strategy. Starting with a small amount of $1800 and DCA $900 every 2 weeks for the next few years, I wanted to use the following set up. Use the 200 dma of both QQQ and SMH as the on/off signal, if both above 200 dma green light, if either are below then red light. If green light, I would then compare the 90D return average of SOXL and TQQQ, and buy 100% into whichever one has the highest returns over the last 90 trading days. When light turns red, put 100% of the funds into SGOV.

Here is our entire portfolio. My wife and I each have a 401k and I have a Roth IRA. Just started investing earlier this year. I have no bonds, since I have military pension and Va disability which total 4500$ a month, which I will treat as bond position. I plan to treat the Roth as strictly more risk more possible reward, gambling type account since it’s tax free.

1-401k- T row price: balance 16000
45%- vanguard inst 500 idx TRC
20%- vanguard mid cap inst plus
15%- trp health sciences
15%- vanguard inst ttl int mkt index
5%- CACI

2-401k- fidelity net benefits balance 12000
40%- large cap sp 500 index
20%- mid cap blend sp ext mkt idx
10%- small cap value am cent
20%- foreign sp dev intl index
10-%- diversified emerging mkts gqg ptnr

Roth IRA- balance 3500

45%- SPMO
35%- AVUV
20%- SoXx

Before deciding to just sell your LETF position and move to cash or bond the first day the index you are following goes below 200d moving average, wouldn’t it be better to add another indicator to go along with it, to try to combat false breakdowns? Maybe like closing 2 or 3 days below 200d mva, or looking at what % of S&P 500 stocks also closed below their 200d mva?

Hello,

I opened new Roth IRA and I’m trying to get my allocation right. It’s a secondary retirement, so I wanted to take more risks. Not only to help it potentially grow faster to get as much capital over the next 4-5 years before going more broad market with it. I was thinking to do 50% of the account in SSO, and use the 200d mva strategy, moving the funds to SGOV when needed. In the other half of the account, I wanted to keep 30% spmo 15% smh and 15% dram, and keep that 50% portion in a typical set and forget strategy. I think it’s a great idea, but wanted more feedback from other people. I will be DCA 1k a month into the account for the next 7 months.

Edit: when I asked AI, it said to replace SSO with QLD and replace dram with avuv

20% - SPMO, VTI, SMH, QQQM, FMTM