About this app

Opens with the four-step sequence that makes the idea concrete — two 50% gains and two 50% losses average to zero and leave the account down 43.75% — then computes compound against arithmetic return across leverage, net of borrowing cost, and finds the peak. Charts both curves with your own leverage marked. Notes that the curve is flat below the peak and steep beyond it, so an error in the volatility estimate is far more expensive on the high side, and volatility rises exactly when leverage hurts most.