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Strategies & Market Trends : ajtj's Post-Lobotomy Market Charts and Thoughts

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To: catou1 who wrote (71218)10/6/2022 12:08:24 PM
From: Sun Tzu3 Recommendations

Recommended By
ajtj99
catou1
Goldilocks

   of 97599
 
In terms of absolute % return, selling the leveraged ETF that is against the market trend nets you a higher amount than buying the opposite because in addition to the market moves, you also benefit from the nav decay. But the problem is that you cannot (at least I have not found a way to) compound the returns. The compounding happens automatically when you buy the one that is with the trend. Going against the trend requires you manually increase the position at the end of each day. This becomes very dangerous when the market makes big moves against you.
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