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Perhaps you should take a closer look at this before deciding on a savings plan for leveraged ETFs rather than watching a Thomas video?
Example: 1. when investing in the 2xQQQ in 2000, it only caught up with the 1xQQQ in 2020. Before that it underperformed. 2. the psychological pressure of a 90% drawdown should not be underestimated! If there is only 1k left of 10k savings for the children, even mom gets nervous. Not selling then puts a strain on you and your relationship.
That's why leveraged ETFs should normally be flanked by a volume-reducing strategy. Otherwise it will backfire. The best way to do this is to read research.
Example: 1. when investing in the 2xQQQ in 2000, it only caught up with the 1xQQQ in 2020. Before that it underperformed. 2. the psychological pressure of a 90% drawdown should not be underestimated! If there is only 1k left of 10k savings for the children, even mom gets nervous. Not selling then puts a strain on you and your relationship.
That's why leveraged ETFs should normally be flanked by a volume-reducing strategy. Otherwise it will backfire. The best way to do this is to read research.
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@SchlaubiSchlumpf Well, I've been working on such an idea for a few weeks now. There's not much on the net about "asset optimization with leveraged ETFs". I have to keep testing it myself. Savings plan returns and taxes are also a topic that I don't have a 100% overview of yet. Let's see, maybe I'll write a post about it. Then we can discuss it. 🤷👍
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@Epi sounds exciting. I'll wait and see.
I probably won't change my core strategy. But you can think outside the box or do something like this on the side for a while as a gimmick. The problem with something like this is that it always has to work over a longer period of time, at best 30 years in retrospect, for which you usually don't get any backtests without major effort.
I probably won't change my core strategy. But you can think outside the box or do something like this on the side for a while as a gimmick. The problem with something like this is that it always has to work over a longer period of time, at best 30 years in retrospect, for which you usually don't get any backtests without major effort.
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@SchlaubiSchlumpf @Epi I did some banal backtesting with getquin today and I came across the problem with the lev. etf that the splits and closings are not really specified here.
For example, if I enter $QQQ3 in 2018, I am almost a millionaire.
For example, if I enter $QQQ3 in 2018, I am almost a millionaire.
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@Der_Dividenden_Monteur Yes, the backtests are difficult with these special ETFs. Try Portfoliovisualizer and 200% leverage with 3% interest rate. That's about right with 3xQQQ.
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