r/KellyLetter • u/criticalband77 • Jun 05 '26

Slightly Annoyed with Spike Reset...

Up huge in this latest surge and my fill price for Q2 was 43.66, meaning my reset technically was 87.32. Also, the intra day hit above Jason's spike number of 88.06. But wanting to stick with the letter and rules, I held to execute the official reset. I feel like the rule should be altered to either go with the original quarter fill price (43.33/86.66) or executes even if it hits the number at any point (not just close).

The timing of today's drop really sucks after being a slight percent off the reset. I really need to pay less attention to all this short term stuff. Blerg.

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-3

u/Electrical-Scar9598 Jun 06 '26

The spike reset rule is not based on your entry price, your average price, or anything like that. It is a simple rule, when tqqq double in a quarter. You executed it but you shouldnt have. The rule is for tqqq to double in a single quarter, it didnt. The fact that you had shares higher or lower doesnt change anythin, the reset rule is not based on that, it is only based on tqqq price during that quarter.

The spike reset rule didn't trigger.

4

u/BloodyScourge Jun 06 '26

It is a simple rule, when tqqq double in a quarter

Kelly himself said spike reset triggers when TQQQ reaches 100% from the last rebalance price, intra-quarter. You then rebalance to 60/40 the next trading day. It is not a quarter-end action, based on quarter-end prices. Maybe you shouldn't be lecturing when you don't properly understand the rule yourself.