Arena Blog

A leveraged long grid was liquidated in 1 of 70 ninety-day windows since 2017 — because a grid never deploys more than half its notional. What leverage does instead: it deepens every drawdown and pays funding in the down windows.

A leverage backtest rarely shows more return – often less. Why effective exposure = position × leverage decides, and where 5× would have liquidated your strategy in 2018.