A $9 trillion strategy dumps leveraged ETF after S&P 500's bearish signal

When algorithms rule trading, emotions take a backseat. This $9T strategy just proved it—exiting a winning leveraged bet the moment the market flashed red.

, and Administrator

2026 April 19 . 2:01 AM

1 min read

The image shows a graph on a white background with text that reads "S&P 500 Index Approved by... — The image shows a graph on a white background with text that reads "S&P 500 Index Approved by Month". The graph displays the index's performance over a period of time, with the x-axis representing the months and the y-axis indicating the index. The graph shows a steady increase in the index over the course of the month, indicating that the index has been steadily increasing over the past few months.

A $9 trillion strategy dumps leveraged ETF after S&P 500's bearish signal

The goal of the $9 trillion strategy is to remain invested in the S&P 500 with low leverage during bull markets while holding cash in weaker market phases. This strategy is one of several systematic, rules-based approaches implemented in the trend-following and momentum portfolio.

Specifically, the strategy follows the simple 200-day moving average (SMA 200). It calls for investing in a leveraged S&P 500 ETF when the market is above the SMA 200 and exiting the position if the moving average is breached. That exact signal was triggered on Thursday based on the closing price.

In the trend-following and momentum portfolio, the leveraged ETF was sold accordingly. The position in the Xtrackers S&P 500 2x Leveraged Daily Swap UCITS ETF 1C (ISIN: LU0411078552) was closed, yielding a 19.71% profit on a trade that had been open since May 2025.

The trend-following and momentum portfolio—originally launched in May 2020 under the name "$9 Trillion Portfolio"—has gained over 197% since inception. This translates to a compound annual growth rate (CAGR) of approximately 20.6% per year.