[kleer001]

Nonsense.

Any strategy that is so easily communicated is certainly already being countered by a hedge fund quant somewhere. And then counter-countered by another quant. And it's quants all the way down.

IMHO the real winning strategy is a Buffet-esque deep understanding of value and fundamentals. And then that really only works in the long run.

You wanna try to outsmart legions of three generations of greedy mathematical wunderkinds high on caffeine and cocaine? Good luck.

[tradri]

That's like saying that investing in the S&P 500 is nonsense, because if it were so easy then everybody would be doing that, and nobody would buy bonds.

The thing is, that there is a risk/reward relationship for everything in investing. And according to this article, the return you are getting on a 3x leveraged ETF are about 20% annually (2x normal stock returns) while the risk/volatility is about 3x. So, there is no free lunch. You are only getting higher rewards for taking on much higher volatility.