/biz/ - Business & Finance

>>16795954
they work fine in an uptrend, leverage decay becomes only issue when volatility is significantly larger than so500 like with crude oil, or when leverage used is larger. but the problem is true bear markets unless highly sophisticated timing systems are used and just buy and hold them. eventually you are facing >90%, perhaps 95% drawdown, and what does the fine print say, they may cancel the product during a big bear. these are not hedge funds where they are supposed to look after investors