/biz/ - Business & Finance

>>29172333
>also how effective would it be to buy SQQQ or UVXY calls every 6 months?
You'd be better off buying TAIL calls. You get the downside protection from black swan events and in normal times the price doesn't just march down to the center of the earth like inverse and volatility based ETFs
>give it to me straight, we're in a bull market with no signs of stopping. im not worried about a market crash or correction, im worried about a bear market. convince me we wont have a prolonged downtrend
Set a 200 day moving average line on SOXX (SOXL underlying) and when the price goes underneath it sell out of SOXL. The biggest enemy of 3x leveraged ETFs is high volatility markets and the biggest predictor of a down turn and high volatility is when your underlying goes under that 200. At that point SOXL will be getting killed so should you sell out at e.g. $200 the volatility decay inherent in 3x ETFs will be dragging the price of SOXL to the ground so by the time SOXX gets back above its 200 day average and you get back into SOXL, the price of SOXL will be much lower than when you got out so you'll end up in a better position with a lot more shares and you never have to worry about getting cucked by some kind of extended decade long bear market. Hope that's clear. I'm tired and need to go to bed.