Using Leverage

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    Hi there,

    Using leverage: My / most brokers give 200% leverage on Stocks/ETN’s. As a result I am buying twice as much ZIV and TMF with this strategy than my allocated fund.

    I have ‘assumed’ this ‘might’ give a better ROC on my fund allocated to this strategy than I would otherwise be able to achieve without using the free leverage.

    I wonder if you foresee any issues with how this may affect the performance of the MYRS strategy and appreciate your insight.

    Thank you


    Hi William,

    the Maximum Yield strategy is already quite aggressive without leverage, and we would not recommend anybody to invest more than 15% of net-worth into it. Now, leveraging an already 3 times leveraged bond ETF and a short volatility component would make this really a wild ride, independent of borrowing expenses and costs for leveraged ETF.

    The historical volatility of 22% and a max drawdown of above 20% are further increasing when applying leverage, while the return will not increase linear due to borrowing costs.

    I’d strongly suggest you consult with a registered investment advisor before doing such an investment, and rather have a look at some more balanced portfolios using our Portfolio Builder.


    Thanks Alex I think I will halve my capital allocation to MYRS but then use the 2x leverage provided so that my exposure is the same even though as you say I will be 2x volatile. But this way I can achieve similar returns whilst using my freed up capital for another strategy? Any issues with this you think?


    Hi Alex,

    Having some further thoughts on this: just using an example if I had a 100k account and my broker provides 200% leverage on stocks…can I invest in 100k worth of MYRS and 100k in something very safe like your Bond Rotation strategy?

    This way i wouldnt be overexposed to one particular strategy but would jointly be benefitting and gaining from the protection and income generated by the Bond portfolio?

    Is it a cheap way to effectively double my portfolio and my returns but without doubling my risk?

    I am considering to additionally subscribe to this strategy as a complimentary less volatile addition to MYRS.

    Many Thanks in Advance,


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