I use leveraged funds to protect my money. For example, by using a 3x leveraged fund, I can invest 333 rather that 1000 if the fund wasn't leveraged. If I invest 1000, and it goes down 50%, I only have 500 in my account. If I lose all the amount in my leveraged fund, I still have 667 that was never invested which is more than if a non-leveraged fund goes down 50%.
James Runde Comment On Regulatory Notice 22-08
I use leveraged funds to protect my money. For example, by using a 3x leveraged fund, I can invest 333 rather that 1000 if the fund wasn't leveraged. If I invest 1000, and it goes down 50%, I only have 500 in my account. If I lose all the amount in my leveraged fund, I still have 667 that was never invested which is more than if a non-leveraged fund goes down 50%.