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0 pointsDef_Os5y ago0 comments

But increased leverage doesn't mean your risk-adjusted returns are any better.

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You can't eat on risk adjusted returns alone! gotta make that chedder

But leverage necessarily decreases your risk adjusted return assuming non zero volatility of the strategy. This is called "volatility drag."

j / k navigate · click thread line to collapse

0 pointsDef_Os5y ago0 comments

But increased leverage doesn't mean your risk-adjusted returns are any better.

You can't eat on risk adjusted returns alone! gotta make that chedder

But leverage necessarily decreases your risk adjusted return assuming non zero volatility of the strategy. This is called "volatility drag."

j / k navigate · click thread line to collapse