A.I.M. Users Bulletin Board

[ls7550]

Scaling a leveraged long position to 1X makes sense. I haven't tried it that way. Would need to give that more study and more thought.

Hi Ray

http://etfreplay.com is a good start point. Backtesting, ETF Portfolio drop down.

Enter something like SSO 50%, TIP 50% and leave the benchmark as SPY.

Only look at individual years at a time, as that will better reflect as though you'd rebalanced back to 50-50 weightings. Over longer periods they'll be more drift as the weightings might move to 60-40 or 40-60 or whatever.

This is an image I have in my IH image library. It spans several years and you can see how over time it started to drift due to not being rebalanced back to 50-50 weightings i.e. likely the SSO weighting was relatively down, TIP weighting relatively up after the 2008 crisis/decline and as such it lost some of its volatility compared to SPY.