“I was attributing the decay to the daily resets specifically... user Pernito pointed out that idea had been debunked... IP Parkos showed rebalancing frequency doesn't really matter on expectation.”

“The way that they work is that you invest, say it's $1,000 in a 2x leveraged index ETF. That gives you exposure to $2,000 of the index's daily returns.”

“If daily returns are just bouncing around a lot, but it ends up kind of flattish on the week, then it might be better to reset at a weekly than a daily interval. You would see that because when you actually computed the vol drag term, the vol drag term says how big are the moves between my resets?”

“Long-term average being I think 6.8% or 7.8%… even if it grew by 3%… I get a 5x return on that because I've taken on leverage.”

“Map the current state to desired future states using the Six Sigma framework to find the symptoms, the root cause”