Leverage in PA
Does it makes sense to use a little leverage (1.15-1.30x) in your PA if you are just buying index etfs.
back of the envelope calculations: with about 15-20% yearly stdev on the s&p a 60% drawdown is 3 standard deviation event (i know returns aren't exactly normal but this is an approximation). So with a 50% maintenance margin on 1.15x leverage you need about a 70% drawdown to hit your margin.
Am I missing something here?
Also how would you rebalance your leverage?