17.5
Pawnbroking
PYTHON PLUGIN
Cash
Lending
Description
Strategy 17.5: Secured lending on commodity collateral discount
Strategy Logic
Strategy 17.5: Pawnbroking (Secured Cash Lending).
Secured lending at a significant discount to collateral value. Lend
when collateral-to-loan ratio exceeds a threshold (e.g. 2x). Applied
to physical commodity proxies (gold/silver ETFs) - buy when the
commodity price drops significantly below its fair / intrinsic value,
representing an attractive collateral opportunity.
Uses SMA-based fair-value estimate: fair value = SMA(close, long_period).
Discount = (fair_value - close) / fair_value.
Parameters
| Parameter | Default Value | Type |
|---|---|---|
| collateral_ratio_threshold | 2.0 | float |
| fair_value_period | 200 | int |
| short_period | 20 | int |
| discount_threshold | 0.1 | float |
Risk Configuration
| Risk Parameter | Value |
|---|---|
| Max Position Pct | 15.0% |
| Stop Loss Pct | 5.0% |
| Take Profit Pct | 10.0% |
| Max Drawdown Pct | 8.0% |