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@0xVeryBigOrange The attrition mechanism of 7709 is indeed overlooked by many players. Its rebalancing rules inherently dictate that you should chase the rise and cut your losses, repeatedly buying high and selling low in volatile markets. The longer you hold it and the greater the volatility, the more obvious the structural attrition becomes. A more solid approach is to treat it as an intraday tool, using it when Hynix shows a clear one-sided trend. Holding it for a longer period is actually the safest path to avoiding losses.

@0xVeryBigOrange Actually, he's long gamma, with an extremely strong one-sided trend, look at Soxl's performance this year. However, once the style shifts and it enters a period of consolidation, strict stop-loss orders are essential, otherwise the product's own stop-loss system will crash.

@0xVeryBigOrange This is common financial knowledge. All ETFs with leverage other than +1 will continuously buy high and sell low to maintain leverage, even a 1x short position (leverage is -1).

@0xVeryBigOrange SOXL daily reset method... Price didn't change, but principal was worn down.

@0xVeryBigOrange Is this output by AI? It's exactly the same as my GPT output: only one word per line, it's incredibly difficult to read.