This is my small account inspired by the Volatility and Leveraged Instruments to Lazily beat the Markets series.
Clearly "Lazily" does not mean "Stably" as the small account was down 22.3% in 2018, its first year in action. But the wild volatility of this approach was a known factor from the very beginning:
The back-test of this allocation model has had draw-downs in the 40%+ in the past. So, this is no surprise. In part this is also the reason why I only have a small amount invested on this, so that I can go through the wild swings without too much concern.
For 2019, a new fresh $5,000 amount was injected and all was re-balanced to the required proportions: 30% UPRO, 30% ZIV, 40% TMF.
The goal remains the same: to obtain +25% average annual returns in the long run. Only time will tell.
Results are tracked live here.
Clearly "Lazily" does not mean "Stably" as the small account was down 22.3% in 2018, its first year in action. But the wild volatility of this approach was a known factor from the very beginning:
The back-test of this allocation model has had draw-downs in the 40%+ in the past. So, this is no surprise. In part this is also the reason why I only have a small amount invested on this, so that I can go through the wild swings without too much concern.
For 2019, a new fresh $5,000 amount was injected and all was re-balanced to the required proportions: 30% UPRO, 30% ZIV, 40% TMF.
The goal remains the same: to obtain +25% average annual returns in the long run. Only time will tell.
Results are tracked live here.
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