Adjust Leverage Here Use

[donhauk]

What is the purpose of the “adjust leverage here” parameter under the Allocations Section of Strategies?

[Patrick @ Logical-Invest]

This is a tool to assist with rebalancing. There are a couple of scenarios where you may want to use it:

1) The primary use case is when using one of our strategies that employ leverage. For example, our Universal Investment Strategy 3x Leverage is currently 180% allocated. If you broker does not allow leverage or simply don’t want to have leveraged exposure, you can change the Total Allocation to 100%.

2) Another use case is if you want give your portfolio a higher risk/reward profile, and your broker allows it, you could change the Total Allocation from 100% to 150%, and the individual allocations will change accordingly to show you how much to buy of each holding. Conversely, in a volatile market, you want to move some money to cash, so you could change the allocation to 75% for example.

Keep in mind that there are additional costs and risks associated with using leverage.

[donhauk]

I’m still confused: For example, when using QT and using 100% as the Alloc. % for “0 LI Strategy of strategies” in the Consolidation Allocations tab, it commutes the weighting using only 99.90%. This means I have to compute a higher dollar amount to allocate so that I’m 100% invested. What am I missing?

[Patrick @ Logical-Invest]

Due to rounding of allocations and rounding to whole shares, there will usually be some small amounts unallocated that you can manually allocate.

In this case, three 33.3% allocations were rounded to 33%. You can change 99% to 100% to get a full allocation.

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