Hi all, I'm trying to simulate a stock strategy that would switch to cash (1Y Treasuries to be precise) once the benchmark (here the SPY) valuation become too excessive, for instance greater than 5 or 10Y avg, or with a 5Y z-score greater than 2.
I'm struggling to understand how to set this up in the Entry and Exit rules of the 'Hedge' section of simulated strategies.
Thanks a lot for your help
What do you mean by "valuation"? Please be specific. Thanks!