QQQ Trading Strategies and Systems | ETF and Futures – (Nasdaq100 + NQ)

Last Updated on June 19, 2022 by Quantified Trading

QQQ Trading Strategies and Systems

QQQ (Invesco QQQ Trust Series 1 ETF) is one of the oldest ETF still in existence. It first started trading in the 1990s. The aim of QQQ is to track Nasdaq-100, and thus you can both use it for long-term investing and short-term trading. It’s a great trading vehicle.

It’s also an alternative to trading futures. Why is that? That’s mainly because you can have both low commissions and slippage, but you cal additionally adjust the size to your overall portfolio size. The NQ future contract is quite big, while you can buy as low as one share of QQQ. It depends on your cost structure, but Interactive Brokers, for example, has very low commissions. Another alternative is the E-mini futures contract or the even lower micro contract.

We have been trading QQQ Nasdaq100 E-mini contract (NQ) for many years, and many of the strategies are published as free trading systems since 2012.

Why do we trade QQQ strategies and stocks?

We have found out that QQQ systems offer good risk and reward for our mean reversion trading strategies. Mean reversion has worked well since the early 1990s, and so far we see no sign of this slowing off, but nothing is (of course) certain. All market regimes stop sooner or later.

Another advantage with QQQ is the same as for other stocks: you have a tailwind via the overnight edge. Almost all the gains since the 1990s have come from owning stocks from the close until the open the next day.

Some of our QQQ trading strategies could be found below. However, we sell the best strategies in our Monthly Trading Edges subscription.

Free QQQ trading strategies: