Leverage in Trading Systems

Discussion in 'Strategy Building' started by psytrade, Oct 6, 2005.

  1. does anyone have any suggestions or things to say about using leverage on a backtested trading strategy?

    Does anyone trade equities longer term using leverage?

    How about using leverage intraday, for example in the prop trading setting.

    Is it better to seek out low drawdown strategies and apply leverage to them than to seek out inherently larger drawdown system strategies?

    Thanks for your help
  2. Lower the risk, the higher the leverage.

    The better the trade , the higher the leverage.

    The more high risk the trade, the faster the blowup!

    Simplicity :)