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Vol-Target 2x QQQ

Vol-Target 2x QQQ is a tactical asset allocation strategy reviewed on a daily cadence. Its hypothetical backtest runs through 2026-07-31. BestFolio supplies the public rule or approach and backtest context; current signals, allocations, and paid interactive data remain restricted to Pro access. No publication or construction date is recorded, so no observed-versus-simulated boundary is claimed; all displayed returns are hypothetical. Users review each scheduled signal and place any resulting trades in their own brokerage. BestFolio does not execute trades or provide personalized investment advice.

Cadence
Daily
Backtest data through
2026-07-31
History boundary
No publication or construction date is recorded, so no observed-versus-simulated boundary is claimed; all displayed returns are hypothetical.
Rule / approach
Holds 2x Nasdaq-100 (QLD) only while the Nasdaq is above its 200-day moving average (3-day confirmed), sized to a target volatility reassessed monthly, otherwise T-bills (BIL).
BestFolio supplies
the public rule or approach and backtest context; current signals, allocations, and paid interactive data remain restricted to Pro access
Customer action
Review each scheduled signal and place any required trades in your own brokerage; BestFolio does not execute orders.
Costs and exclusions
net of a modeled one-way transaction cost (10 bps, scaled up to 3x under stress); taxes, fund-expense drift, or market impact are not modeled
Freshness
The latest available backtest ends 2026-07-31. A run timestamp is not exposed here, so no stronger freshness claim is made.
Next expected action
Next trading day (Monday); scheduled 2026-08-03 at 09:30 ET. Review the published signal before placing any trade.

Vol-Target 2x QQQ at a glance

Vol-Target 2x QQQ is a tactical asset allocation (TAA) strategy by BestFolio, rebalanced daily. Backtested 1999-10-22 to 2026-07-31 (26.7 years): 9.8% CAGR, 0.75 Sharpe, -28.5% max drawdown, 15.3% volatility.

Type
Tactical (TAA)
Author
BestFolio
Rebalancing
Daily
Risk
Aggressive
Period
1999-10-22 to 2026-07-31
CAGR
9.8%
Sharpe
0.75
Max Drawdown
-28.5%
Volatility
15.3%

Vol-Target 2x QQQ Tactical Asset Allocation Strategy

Holds 2x Nasdaq-100 (QLD) only while the Nasdaq is above its 200-day moving average (3-day confirmed), sized to a target volatility reassessed monthly, otherwise T-bills (BIL). A continuous-risk-control take on leveraged Nasdaq: it captures most of the upside while the trend gate sidesteps the catastrophic leveraged drawdowns (raw 2x QQQ buy-and-hold lost about 99% in the dot-com crash).

Vol-Target 2x QQQ: frequently asked questions

What is Vol-Target 2x QQQ?
Holds 2x Nasdaq-100 (QLD) only while the Nasdaq is above its 200-day moving average (3-day confirmed), sized to a target volatility reassessed monthly, otherwise T-bills (BIL). A continuous-risk-control take on leveraged Nasdaq: it captures most of the upside while the trend gate sidesteps the catastrophic leveraged drawdowns (raw 2x QQQ buy-and-hold lost about 99% in the dot-com crash).
Who created the Vol-Target 2x QQQ strategy?
Vol-Target 2x QQQ was developed by BestFolio.
What is the historical return and maximum drawdown of Vol-Target 2x QQQ?
Backtested from 1999-10-22 to 2026-07-31, Vol-Target 2x QQQ returned 9.8% CAGR with a -28.5% maximum drawdown and a Sharpe ratio of 0.75. Past performance does not guarantee future results.
How often is Vol-Target 2x QQQ rebalanced?
Vol-Target 2x QQQ is rebalanced daily. BestFolio publishes the updated allocation signal each period.
Is Vol-Target 2x QQQ a tactical asset allocation strategy?
Yes. Vol-Target 2x QQQ is a tactical asset allocation (TAA) strategy: it adjusts its holdings based on market signals each period rather than holding a fixed allocation.

Backtest Performance (1999-10-22 to 2026-07-31)

MetricVol-Target 2x QQQ
CAGR9.8%
Max Drawdown-28.5%
Sharpe0.75
Sortino1.01
Volatility15.3%
Calmar0.34
Total Return1124.8%
Backtest Period26.7 years

Strategy Details

Type
Tactical (TAA)
Rebalancing
daily
Risk Level
aggressive
Variants
4
Author
BestFolio

Further reading

New to this approach? Read what tactical asset allocation is and how it works.

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