Search found 302 matches

by comeinvest
Sun Feb 21, 2021 10:32 pm
Forum: Investing - Theory, News & General
Topic: Lifecycle Investing - Leveraging when young
Replies: 1258
Views: 146735

Re: Lifecycle Investing - Leveraging when young

There's options on the Dow, Russell 2K and 1K and some sectors, so you could look into those. I'd be interested to hear if you get good fills. Good luck! Thanks for your replies. I will definitely post on this thread once I get started with options and box spreads, so we can combine our experiences...
by comeinvest
Sun Feb 21, 2021 10:16 pm
Forum: Investing - Theory, News & General
Topic: Lifecycle Investing - Leveraging when young
Replies: 1258
Views: 146735

Re: Lifecycle Investing - Leveraging when young

I feel like LEAPS are the way to go to avoid any margin calls, although I think I will keep it simple and not bother with the puts, even though you lay out a good case for them. I plan to shoot for 1.6 leverage in my tax-advantaged account only, so I will probably be at only about 1.2 leverage over...
by comeinvest
Sun Feb 21, 2021 7:07 pm
Forum: Investing - Theory, News & General
Topic: Lifecycle Investing - Leveraging when young
Replies: 1258
Views: 146735

Re: Lifecycle Investing - Leveraging when young

Shorting an SPX box is just a way to change the margin borrowing rate from 1.59% (or lower) into about 0.6%. It doesn't change anything else. You still invest in the exact same broad-based ETFs. This is what I did; I bought all of the ETFs I wanted on margin, then shorted SPX boxes to change my mar...
by comeinvest
Sat Feb 20, 2021 11:58 pm
Forum: Investing - Theory, News & General
Topic: Lifecycle Investing - Leveraging when young
Replies: 1258
Views: 146735

Re: Lifecycle Investing - Leveraging when young

You may want to consider using EUREX MSCI World index Futures to gain leverage. The ticker at IB is MXWO(DTB). The BID/ASK spread is about 20~25 USD/contract(~28000USD), which is a little larger. But it provide developed market exposure instead of only S&P 500. Pairing it with some EIMI.LSE, an...
by comeinvest
Tue Feb 16, 2021 4:38 am
Forum: Investing - Theory, News & General
Topic: Moving to short-term bonds because yields can only go up? Careful what you wish for.
Replies: 139
Views: 13720

Re: Moving to short-term bonds because yields can only go up? Careful what you wish for.

A weekday might also prove more productive for searching in your brokerage account. Thanks for the help! I'll see what I can find. Comments are welcome. Your reasoning is nearly identical to mine, and I currently hold TMF as a result. Here's hoping we're both right. Unfortunately the author of this...
by comeinvest
Tue Feb 16, 2021 4:28 am
Forum: Investing - Theory, News & General
Topic: Moving to short-term bonds because yields can only go up? Careful what you wish for.
Replies: 139
Views: 13720

Re: Moving to short-term bonds because yields can only go up? Careful what you wish for.

3. By using futures, the treasuries position won't affect my percentage allocated to equities per my age-based asset allocation. In other words, I don't have to give up expected (positive) returns. Can you elaborate as to why your use of futures doesn’t eat into your equity allocation? Because with...
by comeinvest
Mon Feb 15, 2021 4:27 pm
Forum: Investing - Theory, News & General
Topic: Moving to short-term bonds because yields can only go up? Careful what you wish for.
Replies: 139
Views: 13720

Re: Moving to short-term bonds because yields can only go up? Careful what you wish for.

Backtesting short term bonds versus long term bonds over the past 30 - 40 years is so inherently flawed that its results are meaningless IMO. We have never before in history been a fixed income market like we've had for the last 11 years, zero real yields in the face of a long term massive bull mar...
by comeinvest
Sat Jan 23, 2021 8:39 am
Forum: Investing - Theory, News & General
Topic: [Interactive Brokers margin account for IRA futures - holding T-Bills not allowed]
Replies: 6
Views: 519

Re: [Interactive Brokers margin account for IRA futures - holding T-Bills not allowed]

Welcome! I retitled your thread. I believe you are referring to: IRA Account Information | Interactive Brokers This may not be the right forum for futures trading. We follow the Bogleheads® investment philosophy , which is a long-term buy and hold approach that invests in the entire market using lo...
by comeinvest
Thu Jul 23, 2020 5:33 am
Forum: Investing - Theory, News & General
Topic: Benefits of NTSX Exhausted due to Low Treasury Yields?
Replies: 14
Views: 1167

Re: Benefits of NTSX Exhausted due to Low Treasury Yields?

I think the OP's question is valid. The rebalancing effect might remain. The sustained tailwind of the 90/60 strategy vs. the equity index from falling interest rates during the last decades, will be mostly gone. We cannot extrapolate past performance of this strategy without controlling for differe...
by comeinvest
Thu Jul 23, 2020 5:03 am
Forum: Investing - Theory, News & General
Topic: Brokerages for Futures Trading in IRA?
Replies: 32
Views: 3469

Re: Brokerages for Futures Trading in IRA?

FYI: It appears that IB recently reduced 3x margin to 2x margin for most futures contracts in IRAs.
by comeinvest
Thu Jul 23, 2020 4:54 am
Forum: Investing - Theory, News & General
Topic: Brokerages for Futures Trading in IRA?
Replies: 32
Views: 3469

Re: Brokerages for Futures Trading in IRA?

I recently looked into Tradestation. For many people they should be the lowest cost option for an IRA with futures (i.e. risk-parity type strategy). Pros: 100% margin in IRA (same as non-IRA) Can post t-bills as collateral so no cash slip (big deal, especially if interest rates ever go up) Lots of ...
by comeinvest
Fri May 01, 2020 8:32 pm
Forum: Personal Investments
Topic: Taxable Muni Bonds [edited to remove all-caps]
Replies: 12
Views: 1272

Re: Taxable Muni Bonds [edited to remove all-caps]

I hold a tax free CEF. NXQ. Diversified, low ER, tiny amount of leveraging, and below NAV. Yield is pretty good. It is real good if you are in a tax bracket above 24%. On the web site for NXQ it says: AVG. BOND PRICE NOT INCLUDING ZERO COUPON BONDS - $108.41 AVG. BOND PRICE AS A % OF PAR - $93.91 I...
by comeinvest
Wed Oct 02, 2019 8:11 pm
Forum: Investing - Theory, News & General
Topic: Charles Schwab (SCHW) Eliminating Commissions for Stocks, ETFs and Options Listed on U.S. or Canadian Exchanges
Replies: 107
Views: 12423

Re: Charles Schwab (SCHW) Eliminating Commissions for Stocks, ETFs and Options Listed on U.S. or Canadian Exchanges

On another note, frankly, as a passive investor I personally would prefer low commissions and sweep funds like most brokers had a few years ago vs. the current situation of zero commissions. If you do the math, the lost interest often outweighs commissions over a year. I have $14 sitting in cash in...
by comeinvest
Wed Oct 02, 2019 7:31 pm
Forum: Investing - Theory, News & General
Topic: Charles Schwab (SCHW) Eliminating Commissions for Stocks, ETFs and Options Listed on U.S. or Canadian Exchanges
Replies: 107
Views: 12423

Re: Charles Schwab (SCHW) Eliminating Commissions for Stocks, ETFs and Options Listed on U.S. or Canadian Exchanges

https://sourcemedia.brightspotcdn.com/dims4/default/70f0f34/2147483647/strip/true/crop/3560x2320+0+0/resize/840x547!/quality/90/?url=https%3A%2F%2Fsourcemedia.brightspotcdn.com%2F9d%2Ff4%2Fcb0ab0cb4bba95faaeee819f34a7%2Fschwab-revenue-by-the-numbers-1.png https://www.financial-planning.com/news/why...
by comeinvest
Wed Oct 02, 2019 6:52 pm
Forum: Investing - Theory, News & General
Topic: Charles Schwab (SCHW) Eliminating Commissions for Stocks, ETFs and Options Listed on U.S. or Canadian Exchanges
Replies: 107
Views: 12423

Re: Charles Schwab (SCHW) Eliminating Commissions for Stocks, ETFs and Options Listed on U.S. or Canadian Exchanges

Schwab has been trolling existing customers for new money, offering bonuses. I just transferred my SCHB dividend out this morning. Will wait until we pay for our new roof, then transfer money into Schwab and buy something, gaining $200 ($50k investment min). Perfect timing for me! Do you have a lin...
by comeinvest
Wed Oct 02, 2019 3:31 pm
Forum: Investing - Theory, News & General
Topic: Why not use Margin Loan as eFund?
Replies: 63
Views: 5487

Re: Why not use Margin Loan as eFund?

The margin investment expense does not have to be directly based margin purchases. Money is fungible. However, there are strict rules on timing and association of the two. The interest on margin loan for external expenses absent an equivalent investment. Is unlikely to qualify for the deduction. I....
by comeinvest
Wed Oct 02, 2019 10:05 am
Forum: Investing - Theory, News & General
Topic: Why not use Margin Loan as eFund?
Replies: 63
Views: 5487

Re: Why not use Margin Loan as eFund?

This is definitely better than a HELOC. Margin interest is deductible. M1 Finance offers margin at 4%, not much higher than IBKR, with a much better interface. With $12,000 standard deduction, 3.5% interest rate, and no other itemized deductions, you will need to borrow more than $342,857 to deduct...
by comeinvest
Wed Sep 25, 2019 7:53 pm
Forum: Investing - Theory, News & General
Topic: Ex DFA CIO launches competitor which will also have ETFs
Replies: 304
Views: 43821

Re: Ex DFA CIO launches competitor which will also have ETFs

Advantis US Equity Expense Ratio 0.15% Advantis International Equity 0.23% Advantis Emerging Markets Equity 0.33% Advantis U.S. Small Cap Value 0.25% Advantis International Small Cap Value 0.36% If Vanguard's quantitative equity group someday makes ex-US analogs of VFMF and friends I might give the...
by comeinvest
Mon Sep 16, 2019 7:01 am
Forum: Investing - Theory, News & General
Topic: Brokerages for Futures Trading in IRA?
Replies: 32
Views: 3469

Re: Brokerages for Futures Trading in IRA?

In the IB TWS platform, Spreadtrader lets you place an order to buy the next expiration (say Dec NQ) at the same time you sell your current position (say Sep NQ) using a limit order, the price being the current difference between the front and back month. This avoids having to place two separate li...
by comeinvest
Mon Sep 16, 2019 6:41 am
Forum: Investing - Theory, News & General
Topic: Ex DFA CIO launches competitor which will also have ETFs
Replies: 304
Views: 43821

Re: Ex DFA CIO launches competitor which will also have ETFs

Basically value plus profitability measure, and MOM screens. The team is all ex DFA I believe. Larry But some management being ex-DFA and the idea being copied from DFA does not necessarily imply that the operational systems, IT, trading desk, affiliated brokers, business logic, etc., are all as ef...
by comeinvest
Mon Sep 16, 2019 5:17 am
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure Part II: The next journey
Replies: 8021
Views: 784143

Re: HEDGEFUNDIE's excellent adventure Part II: The next journey

privatefarmer wrote: Sat Sep 14, 2019 7:37 pm "I was 100% global SCV before this thread." - How much of global and SCV were you able to maintain after implementing the leverage strategy? What is your estimate of the opportunity cost from giving up part of your global and SCV strategy?
by comeinvest
Mon Sep 16, 2019 3:25 am
Forum: Investing - Theory, News & General
Topic: Lifecycle Investing - Leveraging when young
Replies: 1258
Views: 146735

Re: Lifecycle Investing - Leveraging when young

I was going off of comments here, including yours... does IB use instantaneous liquidation or no? https://www.bogleheads.org/forum/viewtopic.php?f=10&t=289144&p=4724263&hilit=EfficientInvestor#p4724263 Regardless, don't see what they offer me as someone just looking to hold Treasury fut...
by comeinvest
Mon Sep 16, 2019 2:59 am
Forum: Investing - Theory, News & General
Topic: Brokerages for Futures Trading in IRA?
Replies: 32
Views: 3469

Re: Brokerages for Futures Trading in IRA?

I assume that most readers and commenters of this thread use futures for long-term leverage that some life-cycle strategies come with. For all those that commented on the instant margin violation liquidations of IB: How bad is that really vs. the 1 day or whatever you get at the other brokers? With ...
by comeinvest
Mon Sep 16, 2019 2:50 am
Forum: Investing - Theory, News & General
Topic: Brokerages for Futures Trading in IRA?
Replies: 32
Views: 3469

Re: Brokerages for Futures Trading in IRA?

I don't know if anybody else cares, but none of the other future brokers mentioned but IB offer ICE futures or EUREX futures. For those that consider implementing a leveraged strategy on international or emerging markets indexes. TradeStation offers some, but it's unclear to me how their currency co...
by comeinvest
Mon Sep 16, 2019 2:38 am
Forum: Investing - Theory, News & General
Topic: Brokerages for Futures Trading in IRA?
Replies: 32
Views: 3469

Re: Brokerages for Futures Trading in IRA?

I have been trading futures in my IRA through TastyWorks for a few months now and have been pleased so far. The creators of thinkorswim created TastyWorks after selling thinkorswim to TD Ameritrade. They charge $1.25/contract on regular futures and $0.85/contract on micro futures. From what I have ...
by comeinvest
Mon Sep 16, 2019 2:34 am
Forum: Investing - Theory, News & General
Topic: Brokerages for Futures Trading in IRA?
Replies: 32
Views: 3469

Re: Brokerages for Futures Trading in IRA?

I chose TDA (negotiated commissions) over TW. Everything has been as advertised for futures in a Roth IRA for me. One thing to note is that while they have some YMMV flexibility with margin calls for non-IRA accounts (e.g. extra day for a wire), they seem to be very strict about calls in an IRA (wh...
by comeinvest
Mon Sep 16, 2019 2:32 am
Forum: Investing - Theory, News & General
Topic: Brokerages for Futures Trading in IRA?
Replies: 32
Views: 3469

Re: Brokerages for Futures Trading in IRA?

... I think your summary indicates the obvious choice right now, TD Ameritrade. I used IB before they increased margin requirements gigantically in IRA's, and also effectively banned selling S&P futures options short in an IRA. To replicate the 'PutWrite' index you do that, sell X notional amou...
by comeinvest
Mon Sep 16, 2019 2:21 am
Forum: Investing - Theory, News & General
Topic: Brokerages for Futures Trading in IRA?
Replies: 32
Views: 3469

Re: Brokerages for Futures Trading in IRA?

Both IB & TDA have features that make rolling over futures easy (and less risky) at quarterly expiration Edit: One more CON for IB, you have to pay a monthly fee for data unless you exceed some commission thresholds, so if your "trading" is more like buy and hold (swing) you will like...
by comeinvest
Mon Sep 16, 2019 1:42 am
Forum: Investing - Theory, News & General
Topic: Ex DFA CIO launches competitor which will also have ETFs
Replies: 304
Views: 43821

Re: Ex DFA CIO launches competitor which will also have ETFs

Unfortunately, still no competition for DGS. And fees of the international small value almost identical to that of the existing ISCF, SCID, SCIX, and others. What is a specific measure in which Avantis is better than those? DGS - Wisdom Tree Emerging Markets Small Cap Dividend Fund Expense Ratio 0....
by comeinvest
Sun Sep 15, 2019 6:00 am
Forum: Investing - Theory, News & General
Topic: Ex DFA CIO launches competitor which will also have ETFs
Replies: 304
Views: 43821

Re: Ex DFA CIO launches competitor which will also have ETFs

Unfortunately, still no competition for DGS.

And fees of the international small value almost identical to that of the existing ISCF, SCID, SCIX, and others. What is a specific measure in which Avantis is better than those?
by comeinvest
Sun Sep 15, 2019 3:45 am
Forum: Investing - Theory, News & General
Topic: Lifecycle Investing - Leveraging when young
Replies: 1258
Views: 146735

Re: Lifecycle Investing - Leveraging when young

Are you or are you not entering into a contract to do something in the future? I'll not use the term loan and you can replace my word loan for contract in my referred post and you'll get the same reasoning. A futures contract obligates you to do something, whereas a letf doesn't. Ah ok I understand...
by comeinvest
Sun Sep 15, 2019 3:24 am
Forum: Investing - Theory, News & General
Topic: Lifecycle Investing - Leveraging when young
Replies: 1258
Views: 146735

Re: Lifecycle Investing - Leveraging when young

I believe TDA does something where they allow a negative cash balance (charging interest of course) and will keep your futures position open... if you have collateral in equity funds. So they apparently won't kick you out of the position. I believe IB immediately closes your future position (even i...
by comeinvest
Sat Sep 14, 2019 8:16 am
Forum: Investing - Theory, News & General
Topic: Lifecycle Investing - Leveraging when young
Replies: 1258
Views: 146735

Re: Lifecycle Investing - Leveraging when young

... The expense ratio comes in by slightly limiting SPY's upside. Fair enough. That just means that my potential returns from leveraging (positive returns - cost of leverage) is lower because the former quantity is a little smaller; not because the latter is a little bigger. That's exactly what I m...
by comeinvest
Sat Sep 14, 2019 7:46 am
Forum: Investing - Theory, News & General
Topic: Lifecycle Investing - Leveraging when young
Replies: 1258
Views: 146735

Re: Lifecycle Investing - Leveraging when young

Thank you, I really appreciate it. Do you happen to know if there are any futures brokers that allow any equities or ETFs as collateral? I think a while ago I read in some futures regulatory publication that various assets can serve as futures collateral at different percentages of current value, b...
by comeinvest
Sat Sep 14, 2019 7:04 am
Forum: Investing - Theory, News & General
Topic: Lifecycle Investing - Leveraging when young
Replies: 1258
Views: 146735

Re: Lifecycle Investing - Leveraging when young

Since 1.77% is below the current risk-free rate of ca. 2%, something must be wrong with your math. I'm open to anyone pointing out errors in my math. I never claimed it was perfect 0_o That said, you seemed to answer this comment yourself any ways: With your options, you borrowed for ca. 2.5 years....
by comeinvest
Sat Sep 14, 2019 5:47 am
Forum: Investing - Theory, News & General
Topic: Lifecycle Investing - Leveraging when young
Replies: 1258
Views: 146735

Re: Lifecycle Investing - Leveraging when young

Thank you, I really appreciate it. Do you happen to know if there are any futures brokers that allow any equities or ETFs as collateral? I think a while ago I read in some futures regulatory publication that various assets can serve as futures collateral at different percentages of current value, b...
by comeinvest
Tue Sep 10, 2019 6:31 pm
Forum: Investing - Theory, News & General
Topic: Lifecycle Investing - Leveraging when young
Replies: 1258
Views: 146735

Re: Lifecycle Investing - Leveraging when young

Could you explain why options are better than futures here? Futures require settled cash as collateral. As I came to find out, Schwab pays you basically nothing for that cash (0.3%). IB pays you 1.63%, which is still significantly lower from a MM or high yield savings (not to mention all of the add...
by comeinvest
Tue Sep 10, 2019 6:22 pm
Forum: Investing - Theory, News & General
Topic: Lifecycle Investing - Leveraging when young
Replies: 1258
Views: 146735

Re: Lifecycle Investing - Leveraging when young

... - Leveraged ETFs: These ETFs borrow at the LIBOR rate (and even lower). When you factor in the hefty expense ratio, they begin to have similar costs to using futures (perhaps a little more expensive). These reset the leverage daily to achieve 2:1 leverage between every trading day. This makes t...
by comeinvest
Tue Sep 10, 2019 5:37 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure Part II: The next journey
Replies: 8021
Views: 784143

Re: HEDGEFUNDIE's excellent adventure Part II: The next journey

Is this a deflationary scenario where people fear inflation? That's what it sounds like. Anyway, I like thought experiments, so I will play anyway. I cannot go to the place where I think the know what future returns will be. If I can borrow money at -2%, I would borrow it. However, I presume that o...
by comeinvest
Tue Sep 10, 2019 3:43 am
Forum: Investing - Theory, News & General
Topic: Lifecycle Investing - Leveraging when young
Replies: 1258
Views: 146735

Re: Lifecycle Investing - Leveraging when young

Decided I felt comfortable enough to implement some borrowing with derivatives. For various reasons, I came to the conclusion that options were far superior than futures in my circumstances. Perhaps this thread can be a good resource for others that want to attempt something similar. I bought 2 Dec...
by comeinvest
Tue Sep 10, 2019 3:08 am
Forum: Investing - Theory, News & General
Topic: Lifecycle Investing - Leveraging when young
Replies: 1258
Views: 146735

Re: Lifecycle Investing - Leveraging when young

... - Leveraged ETFs: These ETFs borrow at the LIBOR rate (and even lower). When you factor in the hefty expense ratio, they begin to have similar costs to using futures (perhaps a little more expensive). These reset the leverage daily to achieve 2:1 leverage between every trading day. This makes t...
by comeinvest
Tue Sep 10, 2019 2:33 am
Forum: Investing - Theory, News & General
Topic: Lifecycle Investing - Leveraging when young
Replies: 1258
Views: 146735

Re: Lifecycle Investing - Leveraging when young

For those who invest internationally, European futures might be interesting. Libor for the Euro is negative at the moment making financing costs quite low. The Eurostoxx 50 future (the European equivalent of the S&P 500) has quite low financing cost of around 1,0 to 1,5%. E.g. the dec future tr...
by comeinvest
Mon Sep 09, 2019 11:58 pm
Forum: Investing - Theory, News & General
Topic: Lifecycle Investing - Leveraging when young
Replies: 1258
Views: 146735

Re: Lifecycle Investing - Leveraging when young

Could you explain why options are better than futures here? Futures require settled cash as collateral. As I came to find out, Schwab pays you basically nothing for that cash (0.3%). IB pays you 1.63%, which is still significantly lower from a MM or high yield savings (not to mention all of the add...
by comeinvest
Mon Sep 09, 2019 6:05 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure Part II: The next journey
Replies: 8021
Views: 784143

Re: HEDGEFUNDIE's excellent adventure Part II: The next journey

To everybody: What's the proposed end game of Hedgefundie's strategy (or its variations) if U.S. rates follow the pattern of Japan and Europe? Would you still play this strategy if 10-year treasuries are at -1% and 30-year at -0.5% nominal, -2.5% and -2% real interest? If not, at what point would y...
by comeinvest
Mon Sep 09, 2019 5:49 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure Part II: The next journey
Replies: 8021
Views: 784143

Re: HEDGEFUNDIE's excellent adventure Part II: The next journey

picking the gfc when people even feared government backed bonds for a while is a perhaps weakness, collapse of bond market and financial system....to this portfolio as discussed in the miles long thread. it is not the only time the market went down in history. biggest annual stock drops since 1978 ...
by comeinvest
Mon Sep 09, 2019 3:27 am
Forum: Investing - Theory, News & General
Topic: Lifecycle Investing - Leveraging when young
Replies: 1258
Views: 146735

Re: Lifecycle Investing - Leveraging when young

... - Leveraged ETFs: These ETFs borrow at the LIBOR rate (and even lower). When you factor in the hefty expense ratio, they begin to have similar costs to using futures (perhaps a little more expensive). These reset the leverage daily to achieve 2:1 leverage between every trading day. This makes t...
by comeinvest
Mon Sep 09, 2019 2:56 am
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure Part II: The next journey
Replies: 8021
Views: 784143

Re: HEDGEFUNDIE's excellent adventure Part II: The next journey

picking the gfc when people even feared government backed bonds for a while is a perhaps weakness, collapse of bond market and financial system....to this portfolio as discussed in the miles long thread. it is not the only time the market went down in history. biggest annual stock drops since 1978 ...
by comeinvest
Sun Sep 08, 2019 4:34 am
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure Part II: The next journey
Replies: 8021
Views: 784143

Re: HEDGEFUNDIE's excellent adventure Part II: The next journey

Hi, why not use futures (instead of leveraged ETFs)? Thank you for your excellent work. This has been discussed widely. Futures require a larger portfolio size, especially if one wants to actually take advantage of any form of rebalancing bonus. They also require more day-to-day attention, unless y...
by comeinvest
Sat Sep 07, 2019 7:45 am
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure Part II: The next journey
Replies: 8021
Views: 784143

Re: HEDGEFUNDIE's excellent adventure Part II: The next journey

Hi, why not use futures (instead of leveraged ETFs)? Thank you for your excellent work. This has been discussed widely. Futures require a larger portfolio size, especially if one wants to actually take advantage of any form of rebalancing bonus. They also require more day-to-day attention, unless y...
by comeinvest
Sat Sep 07, 2019 6:56 am
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure Part II: The next journey
Replies: 8021
Views: 784143

Re: HEDGEFUNDIE's excellent adventure Part II: The next journey

... My current thinking is that leverage should be implemented using futures because you could eliminate the following costs: - Volatility Decay - Management Fees Finally, I think you could also reduce your leverage from 3X to something like 2.5X or 2X if you eliminated volatility decay and managem...