Vikram Saxena

Distressing Details of the UltraShorts

In a non-trending market with a lot of ups and downs, both the long and short Ultra funds will not return 2x the result of the underlying. This is a simple mathematical result and not some voodoo; the result of these funds resetting their relationship with the underlying every day. These funds are best used as trading vehicles for swing trading; zig-zag direction will affect their results.