Further thoughts......In the last 20 years the NDQ has averaged...

Further thoughts......
In the last 20 years the NDQ has averaged 1 negative year to 4 positive years.

Average return per annum over the medium to long term.
10yrs - 18% p.a.
15yrs - 11.5% p.a.
20yrs - 11.0% p.a.
Since inception(1975) - 14.5% p.a.

So....if it is leveraged 2.6 times it becomes significant long term compounded returns.

Newdart in his raising of the rebalancing costs, presented a legitimate chink in the theory, however the compounded long term returns as evidenced above, should comfortably compensate the rebalancing value erosion. Other fears??

What is the most significant risk to this strategy apart from the obvious movement of the index itself?