Shared conversation
Creating and Backtesting the Omni Portfolio
A detailed conversation about creating a new investment portfolio named 'Omni' with a $10,000 initial value, implementing a SMA crossover strategy on TQQQ, and backtesting the strategy from January 1, 1995, to the present.
Read the conversation below. Open the interactive view for charts, attachments, and continuing this conversation.
Aurora
Hello. Would you like to create a new portfolio?
User
Create a portfolio called Omni with an initial value of $10,000
Aurora
What strategy would you like to implement for your Omni portfolio?
User
I want a SMA crossover strategy on TQQQ. I want a take profit strategy, but no stop losses – I'm bullish on tech long-term and don't want to be stop lossed out. I also want to space out my buys and not go all-in at once.
Aurora
Description:
The "Omni" portfolio is initialized with an initial investment of $10,000 and employs a Simple Moving Average (SMA) crossover strategy on TQQQ. This strategy is designed to capitalize on upward trends by spacing out purchases rather than investing the entire amount at once. Specifically, the portfolio buys increments of TQQQ when the short-term SMA (50-day) crosses above the long-term SMA (200-day), indicating a bullish trend. Additionally, the strategy includes a take profit mechanism that sells all TQQQ positions when the Price Rate of Change over a 14-day period exceeds 15%, allowing for the realization of profits without implementing stop-loss measures. This approach reflects a long-term bullish outlook on TQQQ, focusing on momentum and profit-taking.
User
Backtest from Jan 1st 1995 to now