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The problem is if you don't put enough to not hurt yourself in a downside scenario, than the returns in an upside scenario will not make a material difference.
It is not possible to predict what an optimal allocation should be for the future because it is only known in retrospect. Looks like another "back tested" thesis. This is not specific to leveraged ETFs but applies to any high risk/volatility asset. People do this all the time by putting 0.01% in high risk asset classes and being happy when it does well and not getting hurt when it doesn't. Good psychologically but makes no difference to the returns.
Comments
It is not possible to predict what an optimal allocation should be for the future because it is only known in retrospect. Looks like another "back tested" thesis. This is not specific to leveraged ETFs but applies to any high risk/volatility asset. People do this all the time by putting 0.01% in high risk asset classes and being happy when it does well and not getting hurt when it doesn't. Good psychologically but makes no difference to the returns.