Clarity on hedge in screener needed please

Hi

When I just have a straight hedge in the screener (short IWM) of say 20% (with no hedging rules), is it:

a) constantly short 20% of my total equity, or

b) short 20% of my current total long positions (if there are long positions on in a period)?

I could not find clarity on this in the guide or forum.

Thanks
Rod

Rod,

In the screener i think it is 20% of longs. So is leveraged with 120% of total equity invested. Have not used much so maybe someone will correct me if I’m wrong.

The Sims give you more control and can select either of the options you mentioned.

Regards,

Jim

Thanks Jrinne.

Can the programmers we pay money to please reply - so I am sure?

Thanks
Rod

The screener is always fully invested in whatever positions it holds unless there’s a Max Pos % setting. If you left the Max Pos % to 0 then it’s 20% of total equity. If is set to > 0 I have to test it. I’m not sure.

You can just run the screen backtest with the ‘Save Log’ feature and it will show you all the details.

Thanks. Viewing the log helped - I hadnt done that before. A hedged system (‘hedged’ under main settings), if there are no specific rules, is constantly hedged to your chosen Short percentage, regardless of the number of long positions.

I need some clarity on hedge also:
I am trying to understand hedging in the screener. Some simple questions:

  1. Is the hedge short on the tickers that pass the hedge rules?
  2. Are the rules “ANDED” so that they all have to pass?
  3. Can you short anything?
  4. I have a model which works fine when I use Ticker(“SPY”), but if I insert “XLP” (a Staples BenchMark) it does not work. Any ideas why?