"~FAnTA$tic DD ~"

[snootmagruder]

Hi everyone, 6979, I posted on AJTJ's site yesterday on the 3x ETFs design, i hope this can help someone and is not "old news" The design of 3x ETFs is to follow the underlieing index for 3x for THAT DAY, so if your say down 5% on the index and 15% dn on the etf and it recovers that day you break out even theoretically. However if it closes and recovers the next day then lets do the math: 100 invested down 15% = 85 then up 15% the next day = 97.75 this compounded on daily becomes big. Also interestingly it works out the exact same if up 15% then down the next 15% = 97.75
Snoot,