It is much more important to manage the risk of a portfolio compared to each of its components. If we concentrate on the risk of the entire portfolio, we can include positions (strategies) that we would not consider individually.
Let’s not forget that some strategies work better than others, depending on market conditions. The success is in the construction of the portfolio.
If we had a portfolio with only one position, SPXL for example, the risk would be 38% and if the position were TMF, then the risk would be 39%. However, if the portfolio were constituted by these two positions in the same proportion, then the risk would be only 19%.
From my point of view, our effort should focus on risk management … of the Portfolio. There are numerous studies that show a series of ways to achieve this objective in the long term.