the_lazy_observer

Leveraged ETFs: Handle with Care

Here's a simpler scenario:
Since the downside cannot go more than 100%, while the upside can exceed 100%, if you buy both long and short of the ETFs that follow the same index (ex.: FAS and FAZ), you'd either end up even (minus a small commission) OR in profit.
That's on a daily basis, since these reset daily. The net should be small but if you do it often enough, it should be profitable in the long run.

Leveraged ETFs: Is Tracking Error Really So Troublesome?

Since the downside cannot go more than 100%, while the upside can exceed 100%, if you buy both long and short of the ETFs that follow the same index (ex.: FAS and FAZ), you'd either end up even (minus a small commission) or in profit. That's on a daily basis, since these reset daily. The net should be small but if you do it often enough, it should be profitable in the long run.