That doesn't sound correct. If I was 1000x leveraged, today's return would have been -100%. Then every following day's returns would have been 0%. So average return would have been negative, which is a negative Sharpe. I think the Sharpe is maximized if one sets the relative risk aversion coefficient to 0 or positive. But leveraging further is only achieved with a negative coefficient (risk-seeking) and Sharpe would not be maximum.
I said Sharpe isn't affected by leverage, but I just meant in a reasonable range, like between 1x or 3x or 5x levarage. But at 10x leverage, you're now past that point, I think Sharpe would deteriorate.
Oh my gourd!
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Lol, that morning the selling continued all the way up until the moment the pause post came out. VIX was over $50. We all, myself included, got fucking lucky as shit. Never before in history has an American president taken direct aim at US dollar hegemony like that and had their finger on the trigger, ready to start blasting. Shit, if Truth Social had a fuckin outage that morning and the pause post been delayed by two or three hours, the basis trade may have collapsed. That shit would have caused forced selling of fucking Treasurys. Your box spread would have been roadkill.
Actual foresight at that time would have been selling in February, when he delayed the tariffs the first time. I was stupid and didn’t sell at that moment, I figured his complete dipshittery was being priced in from November 2024. The wild rally after the election made me complacent. A deus ex machina showed up and saved every bull from total annihilation.
Idk what to tell you. The day he posted that, after multiple days of -10%, after multiple reports of the admin being scared, especially from the bond market seizing, I could just see clear as day a capitulation was incoming. Was it certain? No. Was it "100% luck" as you put it? Also no.
You don't determine a risk by testing its limits.
Imagine a would where everything worked out as expected with a disregard for unexpected outcomes. Do you think insurance would be a service provided?
I'll repeat, this is working flawlessly for you, until it doesn't.
If you finance a house the house should be the same amount or more than what is borrowed. So like 2x at most. If it's through box spreads and not actually margin that makes more sense.
The .com bubble happened. Things were blown out of proportion, companies failed but the technology revolution happened from 2000 forward. Fast forward 25 years minus the financial crisis that happened, it is here to stay. Some people remember dial up internet, cell phones didn’t exist. How fast did that shit evolve? I’m not saying it’s a good a thing because human beings in my opinion were much happier disconnected rather than connected to the entire ecosystem of the entire world in milliseconds. In opportunity, greedy money and where the market is going you bet your sweet ass that technology will always dominate in every industry.