I want to follow a Live strategy that is rarely fully invested. When I set up the Live strategy it is only about 20% invested. Let's say for purposes of illustration a $100,000 portfolio then has $20k in stock and 80k cash. When I start a new strategy in manage and follow the Live Strategy, I enter 100k as the amount I want in the strategy, but the system tries to buy 100k of stock. It ignores the fact the Live strategy is only 20% invested.
Could this be fixed? Thanks
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As you probably realize, strategies in Manage only follow positions. They don't automatically resize. The ACCOUNT level is where you can manage your cash. So I'd advise you to put $100K into your account and then invest 20% of that in the strategy. You can adjust that manually if the percentage of cash in your Live Strategy changes.
Thanks for the reply. Yes, this "manually adjust the percentage of cash" is the behavior that I don't like.
It would be way better to actually follow the model. The whole existence of P123 is to automate the investing process, so this solution is a poor work around in my opinion.
Again, I would like to see this changed.
This illustrates my frustration with how it works now. This model uses buy conditions to limit exposure. I didn't start out to design it this way, but just used some logical rules (no technical). It will be difficult to follow this accurately without regularly adding or subtracting cash in the manage strategy.
@marco Could you consider this when you get to your project of improving the manage functions?
Yuval, I have been reading through the forum and maybe dynamic weighting in the sim may help me? Is it possible to set up the sim so that if my normal weight is 30 positions, but only 20 pass the buy rules, then allocate all funds to the 20 positions?
Yes, that can easily be done if you don't want to hold cash. Use dynamic weight and set the ideal number of positions quite high (higher than you'll ever hold).