15.2.3
Loan-to-Own
PYTHON PLUGIN
Distressed
Activist
Description
Strategy 15.2.3: Provide secured financing to distressed, pre-bankruptcy firms
Strategy Logic
Strategy 15.2.3: Finance distressed (but not bankrupt) firm via
secured loans, aiming to convert to equity ownership.
Signal: BUY when company is distressed but not yet in bankruptcy,
with high secured-debt coverage ratio. Uses financial ratios as
proxy signals; falls back to price and RSI heuristics.
Parameters
| Parameter | Default Value | Type |
|---|---|---|
| price_decline_low | 0.3 | float |
| price_decline_high | 0.7 | float |
| rsi_threshold | 30 | int |
| rsi_period | 14 | int |
| asset_coverage_threshold | 1.5 | float |
| lookback | 252 | int |
Risk Configuration
| Risk Parameter | Value |
|---|---|
| Max Position Pct | 12.0% |
| Stop Loss Pct | 20.0% |
| Take Profit Pct | 50.0% |
| Max Drawdown Pct | 30.0% |