Hedging with available cash only

Research
1

Hey guys, wondering if anyone has any thoughts on what to do in this situation:

I have a model that restricts new buying to favorable market conditions, and “tightens up” sell rules in bearish conditions (closer stops and the like). This is more nuanced than going immediately to cash when things get bad, and I find it works quite well.

However, as available cash increases, I’d like to put it into defensive positions (bond ETFs and the like). However, if I use the hedge module for this, it overrides my buy and sell rules to accomodate the hedge percentage.

Essentially I want a way to tell the model to hedge with available cash only. Is there any way to even approximate that behaviour?

2

There’s no way to do this at the moment. It’s an interesting concept . There will be an upgrade of hedging module at some point, and this should not be too hard to do. Thanks

3

Instead of a modification to the hedging module, how about a “sweep account” option? That way excess funds could go to cash or an ETF.

Walter

4

Bringing back an old post while doing a search.

I’ve been trying to figure out a way to put unused cash into an ETF of choice and it’s irrespective of whether there is a hedge on. I would love to see some kind of excess cash allocation at rebalance time. The port would keep track of the “swept” cash and when a position becomes avail to purchase it would sell out of the ETF by the appropriate amount.

5

I’m also interested in this. Instead of holding cash when no stocks meet all buy rules, I would like for it to hold the benchmark or an ETF