Mastering Market Rhythms: The Revolutionary VOO-TQQQ Strategy Unveiled

Woojin Go
3 min readDec 23, 2023

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::Explore How Streamlit Brings to Life a Dynamic Investment Strategy Inspired by Market Indices — A Journey from Insight to Interactive Simulation::

Backtesting results made by utilizing the VOO-TQQQ Switching Strategy Simulator

Introduction

Discovering a Revolutionary Investment Strategy

Imagine uncovering a strategy in the complex world of investments that not only weathers market volatility but also thrives in it. This isn’t a mere financial fantasy. Inspired by an insightful article by 닥터음양, which you can read here, I embarked on a journey to decode and simulate this strategy. It involves tactically switching between VOO (Vanguard S&P 500 ETF) and TQQQ (ProShares UltraPro QQQ) based on signals from key market indices — IXIC (NASDAQ Composite) and SPX (S&P 500).

The Logic Behind the Strategy

This strategy is more than just a set of rules; it’s a dance with the market’s rhythms. When the IXIC index touches its lower channel, it signals a potential upward swing, indicating a shift to the growth-oriented TQQQ. In contrast, a -3% fall in the SPX index triggers a move back to the stability of VOO, cushioning your investment against potential market downturns. This strategy isn’t about predicting the market; it’s about responding to it with agility and insight.

Backtesting App

🔗 APP LINK: https://voo-tqqq-switching-strategy-simulator-a7ufaz75r2tigq7m3zzrdq.streamlit.app/

The resulting graph by running VOO-TQQQ Switching Strategy Simulator

How You Can Experience It

To make this concept accessible and interactive, I developed a Streamlit web application, allowing anyone to test and visualize this strategy with real market data. This isn’t just for seasoned investors; it’s a tool for anyone curious about the potential of strategic investing. Experience the simulation here.

Inside the App

This app is your financial laboratory. Using historical data from Yahoo Finance, lets you backtest the investment strategy over your chosen timeframe. You can observe the performance through vivid graphs and comprehensive tables, comparing the strategy’s outcome with traditional salary accumulation. It’s an educational journey as much as it’s a financial exploration.

Deeper Dive with GitHub

My entire process, from conception to realization, is meticulously documented in a GitHub repository. It’s not just a code repository; it’s a narrative of the project with clear instructions on using the app and understanding its features. The repository also houses a gallery of backtesting results across various periods, offering a window into the strategy’s performance history.

Conclusions

In a world where technology seamlessly blends with finance, the VOO-TQQQ Switching Strategy Simulator emerges as a beacon for smart, responsive investing. This tool is more than a financial model; it’s a new vantage point from which to view the dynamic landscape of stock market investments.

I encourage you to immerse yourself in the app, play with different scenarios, and reflect on its insights. Share your experiences and thoughts. Let’s engage in a conversation about how technology is revolutionizing our approach to investment strategies.

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Woojin Go

Ph.D. | Seoul National University (SNU) | Focused on innovations and sustainable solutions