TQQQ Scaling Strategy

1-Year Historical Backtest Results (June 16, 2025 – June 15, 2026)

Split-Adjusted
Total Return

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Starting with $10,000

Win Rate

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Closed Trades

Total Trades

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Closed position cycles

Max Drawdown

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High-res peak-to-trough

Equity Growth Curve Comparison

Current Open Position Status

No open position at end of period.

Scale-In Trading Rules

1
Double Lot Scale-in: Buys Lot 1 (11 shares) on first drop level, and Lot 2 (22 shares) if price drops to the second level. Sizes double post-split.
2
No Hard Stops: No static stop-loss is placed. Swing positions are carried overnight and held indefinitely until target criteria are met.
3
Bar-by-Bar Trailing TP: Once the average price gains the activation percentage (+1.0% or +2.0%), a bar-by-bar trailing exit activates (exits when close falls below previous low).

Visual Strategy Flowchart

This diagram maps out the complete logic of the Run 6: Combined + Options CC strategy. It visualizes the decision paths from daily market open down to entry drops, spacing buffers, covered call premium collection, and trailing exits.

graph TD %% Styles & Classes classDef entry fill:#1e293b,stroke:#0ea5e9,stroke-width:2px,color:#f0f4f9; classDef exit fill:#1e293b,stroke:#ef4444,stroke-width:2px,color:#f0f4f9; classDef process fill:#111827,stroke:#4f46e5,stroke-width:2px,color:#f0f4f9; classDef decision fill:#1e1b4b,stroke:#a855f7,stroke-width:2px,color:#f0f4f9; Start([Market Open 09:30 ET]) --> DayOpen[Establish Day Open Price] DayOpen --> Filter["SMA Trend Filter:
Check TQQQ vs Daily 200 SMA"] Filter --> SetTargets["Set Spacing & Targets:
• Bull: Targets -1%/-2%, Spacing 0%
• Bear: Targets -3%/-5%, Spacing 15%"] SetTargets --> CheckSlots{"Any Slots Empty?"} CheckSlots -- "Yes" --> Spacing{"Dynamic Spacing Buffer:
Is target below lowest entry?"} CheckSlots -- "No" --> ccLoop Spacing -- "Yes" --> BuyLot1["Enter Lot 1 in Slot
Buy 100 Shares"] Spacing -- "No" --> CCActive BuyLot1 --> PriceDrop{"Price falls to Lot 2 target?"} PriceDrop -- "Yes" --> BuyLot2["Enter Lot 2 in Same Slot
Add 200 Shares"] PriceDrop -- "No" --> CCActive BuyLot2 --> CCActive subgraph CCActive ["Active Position Management & Stuck Options Overlay"] ccLoop{"Held >= 10 Days?"} ccLoop -- "Yes" --> WriteOption["Write Weekly Covered Call
3% OTM"] ccLoop -- "No" --> TargetCheck{"Price rises to Target?
Avg Cost + 2.0%"} WriteOption --> RollCheck{"Friday 15:59: Price > Strike?"} RollCheck -- "Yes" --> RollOption["Roll Option to Next Week
Pay Debit / Sell New CC"] RollOption --> ReduceBasis["Reduce average cost basis"] RollCheck -- "No" --> Expire["Option Expires Worthless"] Expire --> ReduceBasis ReduceBasis --> TargetCheck TargetCheck -- "Yes" --> TrailOn["Activate Bar-by-Bar Trailing TP"] TargetCheck -- "No" --> CarryOver["Hold position overnight"] TrailOn --> ExitCheck{"Close is below Previous Bar Low?"} ExitCheck -- "Yes" --> ExitTrade["Exit Position & Close Option"] ExitCheck -- "No" --> CarryOver end ExitTrade --> ResetSlot["Reset Slot to Cash"] ResetSlot --> CheckSlots CarryOver --> Start class Start,BuyLot1,BuyLot2 entry; class ExitCheck,ExitTrade exit; class DayOpen,Filter,SetTargets,ReduceBasis,ResetSlot process; class CheckSlots,Spacing,PriceDrop,ccLoop,RollCheck,TargetCheck decision;

Live Position Sizing Calculator

Input your desired account details below to calculate your custom lot sizes and capital utilization based on our Run 6 strategy rules (post-split share quantities).

Capital per Slot: --
Lot 1 Size (Shares): --
Lot 2 Size (Shares): --
Max Account Exposure: --

Strategy Configurations & Methodology

Multi-Slot Capital Recycling

Instead of committing all capital to a single position, we divide our account into 3 independent slots (Baskets). This prevents capital lock-up during bear markets.

  • Independent Cycles: If Slot A enters at a peak and gets stuck, Slot B and Slot C remain in cash to trade new daily pullbacks at lower levels.
  • CC Coexistence: When a covered call is running on Slot A, you can continue entering new trades on Slots B/C before Slot A is closed.
  • Active Velocity: While Slot A holds stock and earns Covered Call premium, Slots B/C continue generating trading profits.

Dynamic Spacing (0% Bull / 15% Bear)

We dynamically adjust the pricing buffer between slot entries depending on the market regime to maximize capital velocity while protecting against crashes.

  • Bull Market Spacing (0%): Slots can enter immediately on pullbacks without spacing restrictions, maximizing position size to ride the uptrend.
  • Bear Market Spacing (15%): Slots must be spaced at least 15% apart, preventing you from deploying cash too quickly during a market crash.
  • Batched Sizing: We use options-friendly sizes (Batch 1 = 100 shares, Batch 2 = 200 shares) for simple options contract management.

Daily 200 SMA Trend-Filter

We dynamically adjust our entry drop thresholds based on whether the market is in a long-term uptrend or a long-term downtrend.

  • Bull Market (Above 200 SMA): Aggressive entry thresholds. Buy Lot 1 on a 1.0% drop, and Lot 2 on a 2.0% drop.
  • Bear Market (Below 200 SMA): Defensive entry thresholds. Buy Lot 1 on a 3.0% drop, and Lot 2 on a 5.0% drop to buy only major panics.
  • Safe Downtrend Entries: Combined with spacing, the SMA filter prevents buying normal volatility in a downtrend.

Covered Calls on Stuck Slots (10 Days)

We write covered calls only when a position gets stuck to generate yield and chip away at our cost basis, without capping our upside on quick exits.

  • Stuck Slot Rule (10 Days): We do NOT write options immediately. We wait until a slot has been held for 10 trading days, avoiding option drag on quick winning trades.
  • OTM Striking (3%): We write weekly Covered Calls 3% out-of-the-money, leaving room for stock price appreciation.
  • Weekly Rolling: If TQQQ rallies past our strike on Friday, we roll the option out to next week, collecting credits and avoiding assignment.

Trade Execution Log

# Exit Date Exit Time Position Size Avg Entry Price Exit Price PnL ($) Return (%)