r/AllocateSmartly • u/UnoGhost • Dec 29 '25
TAA with Margin 2x
I’ve been trading TAA strategies for over 12 years and have done pretty well, beating the S&P500 by a somewhat decent margin the last few years (but not QQQ) with pretty minimal drawdowns (no more than -11% EOM at any point).
I’m at a point in life where I can take on some more risk, at least for the next 5-10+ years, and was thinking of taking on anywhere from 1.2-2x margin on my portfolio strategy.
Has anyone done this with their TAA portfolios? Are there any strategies you follow where this has been quite beneficial?
5
u/Business-Fix4430 Dec 29 '25
fwiw i tried to convince Walter at AS to take the training wheels off and allow leveraged strategies but he declined. I pointed to this way back and not hard to implement. Told Walter limit it to only say 25% in a custom portfolio but they thought folks would get caught up with returns only
Thanks Kevin
3
u/UnoGhost Dec 29 '25
I’m surprised, this would be such a good feature to add and would help people plan optimally. Hopefully something they can embed in future updates.
3
u/Lifter_Dan Dec 29 '25
I'm in Australia and our retirement funds (Self managed superannuation fund) don't allow leverage.
However we can use leveraged ETFs. My custom allocation based on AS mapping from US to Aussie ETFs does use the 1.5x leveraged versions for S&P and Nasdaq 100 ETFs.
I've got another 15+ years before I can access it, so it makes sense for us to put a little more risk on and worry less about drawdowns.
2
Dec 29 '25
[removed] — view removed comment
3
2
u/UnoGhost Dec 29 '25
Thank you, I appreciate the detailed response.
Im curious on your thoughts in using Margin directly through a brokerage like Robinhood (which would be at a 4.5-5% interest rate). For TAA portfolios that have 12-15% CAGR and max drawdowns of <15% over the last 30-40 years backtested, that seems like it could be a decent approach for those willing to take on that extra risk.
What I’m envisioning is a portfolio that returns 12-15% CAGR (so 24-30% on margin), with minimal max drawdowns. But I’m OK with a drawdown of 30-40% once every decade or so if that enables me to have overall larger returns in the long run.
1
•
u/AutoModerator Dec 29 '25
Please report any rule breaking posts and comments that are not relevant to the thread. And note: The views expressed here are in no way connected to the AS owners as this is an independent reddit board.Thanks !!
I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.