Possible to hold bonds instead of cash??

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scrichley
Posts: 8
Joined: 20 Jul 2022

Possible to hold bonds instead of cash??

Postby scrichley » 27 Feb 2023

Good morning,

Admittedly, I am new to Multicharts and this is my first post... I'm looking to run a number of different mean reversion systems using the Portfolio trader. However, it seems to help quite a bit to hold bonds over cash when there is no signal to go long an ETF. Most of the time there is nothing to buy, so sitting in cash for long period of times hurts the return.

Is there a way to backtest holding bonds via IEF or TLT instead of cash when the main systems have no position? Maybe it's a simple as adding a lower priority system to buy bonds when the mean reversion systems do not fire. Do we need a separate instruction to take the mean reversion trades when the sytem holds bonds or will portfolio trader automatically sell the bonds to take mean reversion trades if they have higher priority?

I'm attaching an example of a QQQ mean reversion trade with holding cash vs. TLT when out of the market. It's a big difference...

Thank you, Shawn
Attachments
QQQ plus TLT.png
(186.14 KiB) Not downloaded yet
Base system QQQ.jpeg
(108.14 KiB) Not downloaded yet

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