I've put together an Excel Monte Carlo simulation which shows a portfolio carrying a small amount of leverage (meaning 1.2 assets to equity) on an initial deposit with no rebalancing, would imply roughly a 1-2% risk of exceeding the Reg T margin limit over a 25 year period. However, it seems almost too good to be true that you could leverage up this much with so little risk. Has anyone put together a model similar to this or else know of any data or simulation tools that I could look at?
Submitted September 21, 2021 at 11:29AM by Dominyck https://ift.tt/39lUS3s
