A.I.M. Users Bulletin Board

[balrogwarrior]

AIM - Using 3X Leveraged - Cash Shortages

Esteemed individuals!

I've been back testing AIM using 3x leveraged ETF's (I used SOXL). I've used monthly, weekly and even daily runs to see what the returns may be. Running tests at 50/50 Stock/Cash with amounts ranging from $1000 each up to $10,000 each. One thing I keep running into is, due to the volatility, that inevitably, I eventually run out of cash when the market is on a deep drop off leaving potential gains unrecognized.

Interestingly, the monthly re-balance doesn't appear to run out of cash, however, has the lowest return. The weekly, generally runs out at some point with the dollars required to fund to be sometimes more than the initial investment.

Is there a suggestion in circumstances like this in the real world? Should I be starting with different ratios or inject a select amount of cash periodically? Should there be a re-balancing every so often? If so, how do you prevent a re-balance at the incorrect or inopportune times?

Any advice is appreciated.