Obviously I was providing a very simplified approach. Though in real life this is how hedge funds (and myself) make trades. If you can reduce the volatility of a trade that has a positive slope, you can lever up on it. Very important to distinguish pure leverage from an actual source of returns.
Best and most feasible idea in this thread and probably among all of ET this entire month. You put out some quality content, respect.
unrealistic, you will need to go buy and hold with a few "high dividend" rollers, and that's 10% to 15% annually, don't think you would be paid monthly, and the volatility of those "shares" will be high you could trade Futures on SP500 in pre-open and 45min after open, if you have an accurate feel for market trends
This is now a somewhat simple creative accounting problem that has already been solved a few times over. PNL problems are either solved with fixed return instruments like T bills and MBS or creatively like Bernie did. Take your pick.
If you want a hands-off approach. Stay in cash. Be patient. Then buy right and sit tight. This is the only way to make it work. Wait for an event such as one in March when people are stacking up toilet papers and want to get out of market at all costs.