As promised Saturday this is the QQQ study using a simple RSI4 support/resistance trading system over the past 16 months. Note that the setup inputs are revised to 20 and 88 to accommodate the more volatile nature of the Qs versus the SPY. The system generates a few more trades than the SPY version and also yields a much better return on equity considering the substantial differential in capital costs to own 100 shares of Qs versus 100 shares of SPY. % Drawdown was a bit more with the Qs…a situation to be expected given intraday volatility in the Qs. Below we see what happens with pyramiding turned on.The pyramiding model uses the same input values and generates almost 3 times the original number of trades and over 3 times the equity return. As noted, the maximum position size required is 600 shares, although most of the time position sizing is only 100 shares. Later in the week we’ll look at a few risk management exit strategies that could have helped this system get over the 08-09 swoon without a huge drawdown.