Following up on my thread regarding investments with a negative or low beta versus the stock market. zghorner suggested the VIX, but in my testing (I tested various percentages of a portfolio on QQQ, the remainder in VIXY, which is a VIX tracker), while it offsets the losses some, it crushes your overall returns. So very far from ideal. bkr88 suggested farmland, so I tried the same thing with DBA and MOO (separately), which are apparently farmland/operations tickers, neither were great either, yes they both reduced drawdowns but returns were hurt very badly. So, give me your ticker or tickers that I should run as a part of a portfolio with QQQ and let's see which one is the best!!!!
What do you want the "offset the losses" chart to look like, earn 1 for each 1 that QQQ drops? What do you want to see? 1) A product that outruns QQQ 2) A product that runs equidistant opposite QQQ? 3) A product that runs More than QQQ in opposite direction? 4) Other: a product that runs - fill in the blank. Picture the qqq chart in your mind with a vertical scale from 0 to 100. What do you want the "offset the losses" chart to look like, earn 1 for each 1 that QQQ drops?
Try ZN, the 10-year note futures. Best I can come up with. In truth, there is nothing that inverses the QQQ, except the SQQQ.
If that's what you are looking to do, check these out. SQQQ can be your little surfer girl if that's what you are looking for along with her counterpart SOXL. Salt and Pepper. If you likee, put them on 5min charts and if they hit an OBVIOUS setup/trigger, you can always trust Melanie to be Melanie.
I think I did this before or saw someone doing this before, but I forget. So let's do it!!!! Well, I don't have a particular "look" I'm looking for, I'm just shooting for the best profit to loss ratio. So (just making something up), if going 100% in QQQs had a 18% IRR but a 55% max drawdown, but going 70% in on QQQs and 30% in on the something else we are looking for had a 17% return but only a 25% max drawdown, I would consider that an absolutely home run. That sort of thing.
Got it, will try ZN, results coming right up. SQQQ will never work because they are basically perfectly inverse and your return will just drop all the way down to almost nothing. No drawdown, but no return either.
Break it down into simple terms. If QQQ moves 10 UP What do you want from the successful candidate of your search? 10 DOWN? Yes or no
some other ideas...buy PSQ (which is just short QQQ) or SQQQ (-3x), buy puts 3-6 months and just roll them until market breaks. or...just reduce your overall exposure to Nasd
Look at some of the lower three-year, daily return QuantDare correlations between and 549 other ETFs in the attached QQQ_correlations.csv.
But what's the point? They'll practically cancel each other out, no? You might as well just park your cash in T-bills and collect interest.