Must rebalance monthly, pay dividends, pay borrow fee., pay trade commission. Even then return is so high it is more than worth it. Fidelity brokerage. Borrow fees: QID (1.5% APR), TMV (2.0% APR), Dividends are very low $225 quarter with 80K invested.
Check metrics on attached Backtest, highest Alpha, highest Sharpe, highest Sortino. = low volatility, high return.
Can use inverse of S&P 500, but much lower return.
https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=2&startYear=1985&firstMonth=1&endYear=2019&lastMonth=12&calendarAligned=true&endDate=01%2F29%2F2019&initialAmount=10000&annualOperation=0&annualAdjustment=0&inflationAdjusted=true&annualPercentage=0.0&frequency=4&rebalanceType=4&absoluteDeviation=5.0&relativeDeviation=25.0&showYield=false&reinvestDividends=true&benchmark=-1&benchmarkSymbol=QQQ&sameFees=true&symbol1=QID&allocation1_1=-62&symbol2=TMV&allocation2_1=-38&symbol3=QLD&allocation3_2=70&symbol4=TMF&allocation4_2=30
Submitted January 30, 2019 at 02:46AM by pampaguy http://bit.ly/2Wwq1JZ
