See Micro-Rebalancing Transform Market Volatility into Systematic Gains with Nasdaq 100 Index ETF and QQQ Stock

Skeptical about Micro-Rebalancing's real-world application? This page provides concrete evidence of the system working with QQQ stock—the world's most popular Nasdaq 100 Index ETF.

Real Results, Not Theory

Watch as we walk through actual QQQ ETF trades executed using the Micro-Rebalancing system. This isn't hypothetical backtesting or cherry-picked examples—these are authentic trade confirmations matched to our tracking spreadsheet entries.

The following is an excerpt from The Art of the Micro-Rebalance: The New Financial Frontier

QQQ Real-World Results (Excerpt)

 

The following chart represents QQQs price movements from October 2020 to February 2022.

Testing Micro-Rebalancing on the QQQ began in October 2020. On October 5^th, 2020, we had 125 shares of QQQ trading at $278.25 a share, with an initial TA of 34,781.25. Testing documented here will be through February 18^th, 2022, the same as the SPY.

 

First, we will determine the gains made from the trades meant as TA enhancements for MR so they may also be counted favorably towards Buy&Hold. Below is the list of all of the buys and sells performed to alter TA on the QQQ during the time cycle of the testing phase.

738 shares of the QQQ were purchased in all. Again, understand these trades are not regular micro-rebalances that are performed on the position. They initially served as alterations to the TA of the MR models and now must be adjusted to fit into a buy-and-hold model in an attempt to provide a meaningful comparison.

The total amount invested into the QQQ during the above timeframe was $237,013.80. When divided by 738 total shares purchased, the average cost per share is $321.16 when rounded.

Two sales were made on the same dates as SPY. 150 shares were sold on 5/4/21 and 80 shares on 7/16/21.

 5/04/2021- 150 shares sold at $328.39= $1083

7/16/2021- 80 shares sold at $357.42= $2900.80

The combined amount of both sales was $3983.80

 Starting with 738 shares and subsequently selling 230 of them leaves us with 508 shares left to be calculated.

 The last trade performed in this phase was placed on February 18^th, 2022. It was executed for $342.33, providing a gain of $21.17 for each of the remaining 508 shares, totaling $10,754.36 profit.

 When combined with the previous gain of $2900.80, the total profit for the Buy and Hold model is $14,738.16. This also incorporates the investor selling the entire position on February 18^th.

 

MR

The total gains for MR over the same timeframe were $32,143.80.

 

That figure includes the ordinary micro-rebalances but not the proceeds from the two sales earlier in May and July, which totaled $3983.80.

Together MR returned $36,127.60 over the same timeframe for the QQQ. MR outperformed Buy & Hold by a staggering $21,389.44 over the tested timeframe.

 MR returned 15.24% compared to B&H’s 6.22%.

 Purchases in QQQ were not as favorable as they were during the SPY test, which greatly affects returns. This unfortunately is a more long-lasting mistake for the buy-and-hold investor as evidenced by the anemic 6.22% return. MR was undoubtedly greatly affected as well, but it is a more forgiving strategy so long as the underlying equity is quality. Don’t forget the MR investor still holds 413 shares of QQQ while the B&H investor has none at the end of the phase.

 

The original purchase of 125 shares at $278.25 sold at $342.33 yielded $8010 profit alone, roughly a 23.03% return on the lot. However, something to consider here is if the Buy & Hold strategy had the foresight to purchase all 508 shares (We don’t need to complicate it with the two sales from May and July), at the very start in October 2020, the Buy & Hold strategy would have yielded around $32,552.64, still around $3500 shy of MR.

 

B&H Hypothetical- If the strategy bought 508 shares upfront.

508 shares X $342.33 -$278.25= $64.08 gain X 508 shares= $32,552.64 profit

MR still outproduces by 10%.

Here is the spreadsheet tracker for QQQ followed by trading confirmations to verify claims. More proof of how MR functioned with QQQ is on the site.

 

Final Thoughts on QQQ – The Data Speaks for Itself

• MR generated over 23% higher profits than simply holding.
• Poorly timed purchases were detrimental to both strategies, but MR was more resilient.

Get your copy today and do it for yourself!

The Art of the Micro-Rebalance: The New Financial Frontier

 

More Real-World Results and Proof

Micro-Rebalancing QQQ Stock

 

 

Trade Confirmation Evidence

Below are the actual trade confirmations demonstrating our mechanical implementation of Micro-Rebalancing with the QQQ index ETF. Note how each trade corresponds exactly to the trigger points dictated by our pre-set deviation percentages—no emotion, no predictions, just disciplined execution.

Trade Confirmations for QQQ Stock

 

Matching Spreadsheet Documentation

Every confirmation above matches precisely with our tracking spreadsheet entries. This transparent documentation demonstrates how we:

• Maintained our fixed Target Allocation (TA)
• Executed trades only when deviation triggers were hit
• Systematically bought low and sold high through market fluctuations
• Followed the mechanical rules without emotional override

 

Why This Matters for Index Investors

Unlike theoretical models, these real-world examples show how Micro-Rebalancing creates a practical framework for disciplined index ETF investing. The QQQ example demonstrates that even with one of the most widely-held index funds, volatility can become an asset rather than something to fear.

Ready to see how Micro-Rebalancing could enhance your own index investing approach? Explore our complete system in The Art of the Micro-Rebalance: The New Financial Frontier VIP Edition or start with our beginner guide, Index Rebalancing: Smarter Index ETF Investing.

 

Disclaimer

This information is for educational and informational purposes only. Nothing contained herein constitutes financial, legal, or tax advice. Always consult a licensed financial professional before making investment decisions. None of the securities used as examples should be misunderstood as recommendations. The strategies discussed involve risk, and past performance is not indicative of future results. All examples are hypothetical unless otherwise stated.