OptionSmart — Investment Products

LEO

A systematic equity strategy built to stay composed when markets fall — so it can be run harder when they rise.


LEO

Designed around the drawdown, not just the return

Leo is a systematic, rules-based equity strategy. Its defining trait relative to the broader index is a shallower, shorter drawdown profile — the strategy is built to give back less when markets correct.

That resilience is the basis for offering Leo with margin funding. A strategy that already keeps its drawdowns contained is the more sensible candidate for leverage — because leverage amplifies whatever behaviour is already there, for better and for worse.


Two ways to run Leo
Leo
Unlevered
  • CapitalDeployed 1:1, no borrowed exposure
  • ExposureMatches capital allocated to the strategy
  • Best forInvestors who want Leo's discipline without added leverage risk
Leo-MTF
2x via Margin Trade Funding
  • CapitalDeployed with 2x exposure via MTF
  • ExposureDoubled — amplifies both participation and risk
  • Best forInvestors with a strong bullish view who explicitly want leveraged exposure and accept the added risk

Why leverage usually fails — and what Leo-MTF does differently

Most investors who lose money on MTF aren't undone by the market — they're undone by behaviour. Losing positions get held in the hope of a recovery, while winning positions get booked early out of fear of giving the gain back. Under leverage, that same habit does twice the damage.

Leo-MTF removes that behaviour from the equation. Losses are cut systematically and automatically, not left to hope. Positions are held across a diversified set of exposures rather than concentrated bets. And favourable positions are allowed to run their course rather than being closed early — leverage is applied to a process designed to let winners work, not to a habit of nursing losers.

On leverage

Margin Trade Funding borrows against the account to double market exposure. It doubles the strategy's behaviour in both directions — gains are amplified, but so are drawdowns and the interest cost of the borrowed capital. Leo-MTF is intended only for investors who understand this trade-off and are comfortable carrying it.

Strategy type
Systematic, rules-based equity
Variants
Leo · Leo-MTF (2x)
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