One of my subscribers has asked me to consider how well a QLD/PSQ model would perform. When the ETF2X timer signals that it is time to get out of the market, if you want to short the market and are very confident that the market is going lower you could buy the Proshares Ultrashort QQQ (QID) but if you are uncomfortable with a double exposure short ETF you could buy the Proshares Short QQQ (PSQ). Due to the significant decline in the market this year, the QLD model has outperformed in terms of return with a CAGR of 72.4% versus 56.9% for the PSQ model. However, if you are more comfortable with a less volatile portfolio, the QLD/PSQ model may be better suited for you as it had a maximum drawdown of 18.3% and an ulcer index of 1.46 compared to a maximum drawdown of 26.5% and an ulcer index of 2.17 for the QLD/QID model.
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