Leveraged Pair Trade

The Pair Trade investment trading strategy is used in this Machine Learning use case. Also known as Pairs Trade, two highly correlated securities are selected, matching a long position with a short position. It is a market neutral strategy, enabling traders to profit in all market conditions.

Two highly correlated and leveraged Index or Bitcoin ETFs are used.

Most day traders flop. These researchers say one popular strategy generated 46% per-year returns.

“Use of TQQQ allows day traders to fully exploit the benefit of the Opening Range Breakout (ORB) Day Trading Strategy.

“The resulting portfolio would have earned an outstanding return of 1,484% during the same period of 2016 to 2023, while an investment in the QQQ ETF would have earned 169% annualized.”

Market Analytics by Generative AI

**Market Sentiment Rating: 6.15**, **Number of Headlines Analyzed: 75**, **Date Range: May 11-16, 2025** Key Events: * US-China trade agreement triggers buying spree * Nasdaq Composite enters a bull market as tech stocks rally * Emerging AI developers pose competitive pressures on tech stocks Trends: * Rising optimism among investors due to positive economic data and corporate earnings * Tech stocks continue to recover after the US-China trade agreement * Uncertainty in the markets due to ongoing trade war tensions and emerging AI developers' competitive pressures Patterns: * Market volatility increases due to trade war tensions and emerging AI developers' competitive pressures UPRO Momentum Model Outputs: * Price: up 1.4% * Volatility: 87% of average * Momentum: positive 125 Nd * Decision-Tree summary: HOLD a position in UPRO SPXU Momentum Model Outputs: * Price: down -1.4% * Volatility: 155% of average * Momentum: negative -213 Nd * Decision-Tree summary: NO position recommended in SPXU Trade Results Summary: Our last simulated trade on 2025-05-15 02:11:41 for UPRO at 75.0% confidence-level resulted in a 0.28% market gain with a total market loss of -22.27% over 31 trading sessions since 2025-04-01 16:05:13 Recommendation: I recommend **UPRO at 62% confidence**, considering the bullish sentiment and positive momentum in the S&P 500. **Green** 🟢 (2025-05-16 02:54:14:886). 3xSP.com

Updated 2025-05-16 23:03:22 ET

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