Invest Available Cash In a Security

If you have a trading system that is not fully invested 100% of the time and you want to invest that cash into a security like a bond fund or a money market fund then you can use this money management script to do that for you.

Steps:
- Download this money management script
- Update your trading system
- Add this script to your trading system
- Update the "Cash To Equity" field and set it to the security you want to invest in when your strategy has some available cash

By default the cash to equity symbol is set to "TLT" (iShares Barclays 20+ Yr Treas.Bond (ETF)).

Example:
The following trading system consists of a simple trading rule that enters long any NASDAQ100 stock if its RSI crosses above 85 threshold.
Buy = rsi(14) > 85;
When the money management script is applied to the above strategy, we notice an small improvement in the system return and a decrease of the maximum drawdown and the volatility of the trading system. This of course translates into an increase in the Sharpe ratio.

Technical Analysis

• NYSE Index Closes
• Scale-in Trading Strategy
• Day of week and Week number function
• Average Cross-Correlations
• Zweig Breadth Thrust
• Buy Indicator
• Percentage Hughes Breadth Momentum Oscillator
• LSS Pivotal Buy and Sell Numbers - Trend Reaction
• Covered Put Screener
• Ratio of Stocks above and below Bollinger Bands
• More trading objects...

Fundamental Analysis

• iShares Exchange-Traded Funds - ETF Fees and Expenses
• London Stock Exchange News
• Federal funds effective rate
• US Stocks: Insiders & Institutions Ownership
• Announced Stock Splits
• Bankruptcy Filings
• Implied Volatility of iPath ETNs - IV Historical Data
• Percentile Rank of PEG, Price/Free Cash Flow and Price/Sales
• Media sentiment alerts
• Industrial Production Index - IPI - Historical data
• More trading objects...