LETFs: Dual Strategies for Smarter Leverage

[With Backtests] Two leveraged ETF strategies that have historically outperformed the market

Hello!

This week, we’re diving deeper into leveraged ETFs (LETFs) with a follow-up to last week’s post on volatility decay and optimal leverage. I’ll be breaking down two LETF trading strategies I’ve come across in my research alongside a few academic papers.

In future posts, I may implement some of these papers’ strategies with code to test for robustness. But for next week’s paid post, we’re switching gears to calendar anomalies due to requests from paid subscribers.