Gar bear on Nostr: Since y'all are on this topic of risk curve, my question is if you have MSTR in a ...
Since y'all are on this topic of risk curve, my question is if you have MSTR in a brokerage and want to take a margin loans at 10% to repair a car or something, what amount of margin is acceptable and still stay on the safe side of Caitlin Long's "a fool and his levered bitcoin are soon parted".
Brokerage Rule is 35% of account collateral.
I'm thinking I need to stay above 35% in the worse drawdown scenario which would be 80%.
So if I have (10,000 -80%*10,000)* (1-0.35) I can borrow 65% of $2000 or $1300.
Does this make me a fool since this MSTR is leveraged Bitcoin already. I suppose drawdown could be worse than 80%.
Published at
2024-12-04 14:33:43Event JSON
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"content": "Since y'all are on this topic of risk curve, my question is if you have MSTR in a brokerage and want to take a margin loans at 10% to repair a car or something, what amount of margin is acceptable and still stay on the safe side of Caitlin Long's \"a fool and his levered bitcoin are soon parted\".\n\nBrokerage Rule is 35% of account collateral.\n\nI'm thinking I need to stay above 35% in the worse drawdown scenario which would be 80%. \n\nSo if I have (10,000 -80%*10,000)* (1-0.35) I can borrow 65% of $2000 or $1300.\n\nDoes this make me a fool since this MSTR is leveraged Bitcoin already. I suppose drawdown could be worse than 80%.\n",
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