It seems as though to get the BITX synthetic to match the real I have to do 2X the daily on BTCUSD and subtract a daily return of 0.1%. That is a very steep drag. It may not be worth using BITX except for some rare circumstances if it is indeed that expensive to use.
In comparison my synthetic BITO matches with regular BITO using just a 0.03% drag daily equating to about 9% annualized rather than 30%. That being said over the longer term period that BITO has been in existence it has much better results than a drag of 9%. Some of this could be due to increase rates elevating the futures curve of all assets.
Disclaimer
This is not investment advice for you. This website is designed to talk about investments but it is not designed to give you personalized investment advice. This site contains generic information that does not have the capability of taking your personal risk tolerance, goals, assets, or other factors into account. Therefore, this site and all of its related content is for entertainment, informational, and educational purposes only.
The owner of PatienceToInvest.com is also a trade leader on Collective2.com. We may receive compensation by promoting some collective2 strategies over others. Should you decide to make or avoid any investments or use any service due to the information on this site or related information you assume full responsibility and risks and will not hold howiinvest.com it’s associated sites or its owners responsible. You also acknowledge investing is risky and can result in the loss of all your capital and even more than your original capital in some cases.
How I Invest 