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Very few people talked about it over here.

I agree it is the best for many cases except very short term day trade or buy and hold kind. It would be useful if your cut lose is loose instead of tight for usung the 3x decay benefit.

ARKG beats almost all 3x etf in this year

I think mainly because 3x etf would up or down as 4x in strong trend days, so if you use max drawdown to control the underly invest value, nq future would have higher underly invest value. So short 3x etf should be more high risk high return than nq future.

Because the buy sell spread of future is much smaller?

I mean just choose either one, not arbitrary trade . But even arbitrary trade is a good idea since NQ would not be suddebly be -40 dollars oil future kind.

Short sqqq/tqqq may be the best of all

Why do you use QQQ but not NQ or MNQ future? The spread cost would be much lower and trading time is much longer.

Yes I agree. Both started in the same day back in year 2010. Tqqq has raised 175 times while sqqq has dropped from around 10000 to 20. I did some simple math: If take profit when short sqqq with 50%,30%,20% profit is not closed to 175 times. But if decrease % to 3%, then profit is around 400...

Thx for testing result. What is the average holding time period?

TQQQ has good return too

IB borrow cost is really low like below 2% and both are extremely liquid. Going to swing trades with holding from days to weeks.

Which way is smarter?

Anyone likes to short 3x?

Have a look https://www.barchart.com/stocks/quotes/$VIX/options?expiration=2020-10-28-w Current the vix call at 30 strike is raising +346.67%. If you had short call this yesteray, you are losing 346.67% in a day. That is almost impossible for any popular 3x ETF. And today is nothing closed to...

Short option is risky is even small amount. Short vix optin can easily lose 20 times of your money on table.

Trend day happens but it is like 1 or 2 out of 10days

The risk is lower than short option. The exposion of long option can be so high. 3x is always 3x.

Yes exactly

There is always just 3 output everyday with around this %: raise 10% sideways 80% drop 10% Short 3x etf would have 90% winning chance Of course you would say borrow cost is crazy high But it is not true for all 3x etf Agree or not?