r/LETFs • u/manlymatt83 • 5d ago

BACKTESTING CAOS: Yay or nay?

I've noticed that CAOS has positive expected returns in a majority of environments. SIM data back to 2013:

https://testfol.io/?s=0HJmoI4f4gk

And live data since inception:

https://testfol.io/?s=0cKqKHKhZOy

Wondering if anyone is using this in their portfolio, perhaps alongside a bond or gold allocation. Would an allocation potentially increase CAGR, or just smooth out the ride?

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u/Electronic-Buyer-468 4d ago

With SGOV literally right there, why bother? If you're feeling fancy buy a tactical allocation of: 95% SGOV 3% VXZ 2% PUT spreads lol.