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More ProShares Ultrashorts Tomfoolery

The logic is incomplete, I have studied this in detail. FXP failed hedgers terribly, but it could have gone the other way. If the underlying instrument has excess volatility, the ultra-anything will underperform. If the underlying instrument is going in a straight line (like the nov 15 bottom in financials), then the ultras overperform. You have to learn to side step the chop.

It is also possible to rebalance frequently if you want to use it as a hedging strategy. It is better as a directional play.