This fact can actually be easily predicted due to the nature of those ETFs as described by @mtrules . The way leveraged ETFs behave is well documented.
And you seriously believe that this recent volatility is caused by algorithms? And not based on the news? You're probably one of those idiots who thinks construction work will be done by robots in the near future.
Moral of the story: Don't use leveraged ETFs unless you have meticulously researched what you're doing. They're far harder to use than just buying some futures on margin or whatever.
What are you talking about? Why would I think that that volatility was caused by algorithms? I never said this. Algorithms cannot trade without simply observing what happens just like humans do. I only wrote that even dumb algorithms can predict how gold behaves, while you’re complaining that you cannot predict it. The way you’re making conclusions explains why you can’t predict anything.
Another moral I've learned is to never bet against the market. There's over 7 billion people on Earth, and 100% of them want the economy to do well. Trying to predict doomsday is not a good strategy. The 3x leveraged S&P is up 91% ttm.
You sound like a noob. Index mkts opened higher after being 3%. Of course it's going to reverse. Trade futures for AH access or you get f*cked on days like these.
The problem is when shit happens, 3x leveraged S&P still is at 3x leverage regardless where you entered it. Profits now vaporize fast. Whereas futures/stocks you originally bought at some point back when things were far cheaper effectively make your account less leveraged as they go up in value. Not automatic exponential growth but you have far more control and can avoid volatility decay.
I've been following this fund almost daily since September. 95% of the time when it's positive in premarket, it ends the day positive. Usually it continues to increase. And I've never seen a day with it 10% in premarket like it was Monday. After being 3% what?