Home › Forums › Logical Invest Forum › LI portfolios optimized for margin account?
- This topic has 1 reply, 2 voices, and was last updated 2 years, 4 months ago by Frank1 Grossmann.
- 01/18/2021 at 7:40 am #81140GregTParticipant
Have you done some calculations if it is reasonable to run some of your portfolios at IB on margin account with some margin? Basically multiplying all positions of the portfolio with e.g. *1,15. Considering the monthly rebalancing and the hedge, I calculated that even the Aggressive Core Portfolio should be fine on 115% to make a Reg T margin call practically impossible. I think it would be even feasible to optimize a portfolio for this approach for “max monthly drawdown”. Surely this a difficult question on long tail risks, I only did a back-of-the-envelope calculation. Any thoughts or calculations on this?
Greg01/18/2021 at 7:56 am #81141Frank1 GrossmannKeymaster
Yes, this is no problem. Personally I run my private account with a 2x leverage with the goal to reduce negative interest rates I have on my Swiss Franc account. So I only have 50% of the money at IB and the other 50% on my Swiss UBS account where I do not have negative interest rates until now. Even with a 2x leverage I arm only at about 50% margin.
In the past I saw that it takes only 24h to transfer more money from UBS Switzerland to the IB account if this would be necessary.
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