trading 400:1 = BLOWOUT I am talknig about taking small risks so you growing yearly and stil laround in 40 years time. No need to gamble it all today. There's no way you could manage a fund on that kind of leverage.......nor should you trade your own account on that.
I agree nobody needs 400:1 leverage but your point is fundamentally incorrect. If your model your risk of your capital and not your buying power then leverage 100 or 400 shouldn't matter. The fact is anyone asking for 400:1 leverage is going to model their risk off their buying power and will blowup, that's why high leverage is synonymous with blowing up. If used correctly, the only thing that can screw you over is a liquidity squeeze.