Pete,
I haven’t yet decided --for myself-- a “proper” way to manage leveraged ETFs, which is ja sub-set of the problem of how to manage tradables that are highly volatile. The solution you mention would probably be my inclination, as it was when I was trading bonds. Everything was put into one of four categories and position sizes were scaled accordingly: 4x, 3x, 2x, 1x. That made me good money, yet kept me out of trouble.
- Cash & Equivalents
- Defensive
- Enterprising
- Speculative
What anyone else does is up to them. Chef’s Choice.
Charlie