QQQ Dollar Cost Averaging Strategy
DCA when market shows fear (index ≤ 40). Bottom-fish during extreme fear (<25). Avoid buying during extreme greed.
DCA when VIX rises above 18, indicating elevated market uncertainty. VIX spikes (≥25) signal potential bottom-fishing opportunities.
DCA when QQQ approaches MA50 or MA100. Bottom-fish when price touches MA200 or the 5-month moving average.
DCA trigger at 5% drawdown from all-time high. Bottom-fishing trigger at 8% or greater drawdown.
Monitor Nasdaq-100 P/E ratio. DCA when P/E drops 5% or more from recent highs, indicating potential value.
Test how DCA and bottom-fishing strategies would have performed historically. Compare against buy-and-hold and monthly DCA.