Cash and leverage in simulations and live strategies

We are now allowing users to set their leverage limits below 1 (in fact, all the way down to 0.1). This means that you can now keep a certain amount of cash in your simulations and live strategies. If you set your leverage limit to 0.8, 20% of your portfolio will be in cash; if you set it to 0.4, 60% of your portfolio will be in cash.

To use this, click on the “Yes” button by “Use Margin” in the “General” tab. Then set it to any level below 1. In general, you can ignore the other three fields under “Use Margin,” since if leverage is less than 1 they won’t apply (with one exception noted below).

This feature is especially helpful if you’re using formula weight rebalancing and you’re allowing deviation from the target leverage but you don’t want to actually use any margin.

The exception I noted above is as follows: if you’re using formula weight rebalancing and you’re allowing deviation from the target leverage and your leverage is below 1 but not low enough to avoid margin, then you might want to adjust the other settings under “Use Margin” in the “General” tab according to your preferences.

Great!!!