Dump it Here

[rolly1]

A busy week end, so sorry for the delay;
My implementation of the Happy Cat:
View attachment 211079
Now I will discuss an unfortunate issue in implementing a system, issue I will face tomorrow

Whatever your day/week or month periodic trading setup, at a given time, your system will tell you :
Sell A, B, C, etc and buy D, E. F,G, xxxx;
At open tomorrow morning, my Happy Cat will sell:
APE, DTR and LYC and should buy:
MTM,EOS,BGD,PNR , POL and SUL
This will not happen..

Why?
Because I have been silly enough not to keep enough cash buffer
My broker Belldirect does not allow me to enter a trade unless i have the cash for purchase..and the cash will only be available once the sold packets have found a buyer.
Mr @Skate use commsec which advance you the money i believe and settle the account on settlement day.Not bell Direct
i do not have to wait settlement, just have it pending;
As such, in a $100k system with 10 packets, I need to keep a buffer of up to same amount, potentially $100k should the 10 packets in the system be sold and 10 new purchased;
I usually keep a small buffer on that specific portfolio but forgot to have enough asoide.My mistake

You may have noticed that up to the recent past (a few months ago), the shares were traded in alphabetic sequencing order, so you could pre-enter your buy alphabetically A to whatever you had cash for and then as your alphabetical sold shares offloaded, rush to enter a buy order further down the alphabet which get executed at the later open.
Unpleasant but doable and I did that a few times in the past.
Not possible anymore as all shares enter the market very quickly and at once now.
So
tomorrow morning, I will be ready toward the market open and will manually enter the 5 buys i do not have enough cash for ,
Waiting for the HC sales and another parcel I offload to give me the cash to proceed.
I hope I have been clear enough, but the issue is convoluted
And this explains why however good your system is, your backtests tend to diverge from your real world experience: thru mistake, cash constraints, timing issues etc

Are you sure that comsec theory is right? I thought so long as sells had executed (not settled) you were good to buy. Not have pending sells which haven't executed covering the buys?

 

[qldfrog]

Are you sure that comsec theory is right? I thought so long as sells had executed (not settled) you were good to buy. Not have pending sells which haven't executed covering the buys?

as i remember when i last traded with CommSec, a long time ago,:
as long as you had cash on settlement aka 2 days later, it was ok, so you could buy with no money on Monday and just transfer cash to cdia account on the Tuesday.
Bell Direct acts as you explain, once you have sold for $xxx , this amount is added to your tradable amount even before settlement.
bug you can not buy with no cash

 

[Skate]

@qldfrog, thank you for sharing your experience. Your situation highlights one of the most practical challenges in trading. You've identified the problem correctly – without T+2 settlement flexibility, you need substantial cash reserves.

A Practical Suggestion Worth Considering
If I were in your position, I'd seriously consider completely stepping back from the HappyCat, as the potential returns might not justify the stress and effort. You'll still see how the strategy performs with my weekly updates. Of course, it's your choice – this is just how I'd approach it in your shoes.

Skate.