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ConcettoSTRATEGIES

Invested capital and cash reserve: how much is put to work

The invested portion is the share of a combined strategy's capital that the allocation profile puts to work; whatever is left over is held as a cash reserve. You set it as a single percentage, so an invested portion of 75% deploys three-quarters of the capital and keeps one-quarter in cash.

UPDATED 2026-07-23REVIEWED 2026-07-233 MINENIT

How the invested portion works

The invested portion scales how much capital the allocation profile deploys before the strategies it holds are weighted against each other. At 100% the profile is fully invested; below that, the profile deploys only that share and the remainder stays uninvested as cash. It is set on a combined strategy (formerly a portfolio), one value per allocation profile, and it does not change which strategies are held — only how much of your capital is at work in them.

Where you set the invested portion

You set it in a combined strategy's Allocation, on the allocation profile, using the Invested portion control — its helper reads "Share of capital this profile deploys" and its unit is "%". Pick a preset or set a custom value with the slider:

Control valueWhat it deploys
Fully invested100% — no cash reserve
Mostly invested75%
Half invested50%
Lightly invested25%
Customany value you set with the slider

To reach the Allocation card, open the strategy's settings — see Editing a strategy: the settings cards.

What happens to the capital you don't invest

Capital above the invested portion is held as a cash reserve — it is not deployed into any strategy. In a backtest what the reserve does depends on your simulation assumptions: with the Costs assumption off — its default — idle cash earns nothing, so the reserve neither gains nor loses on its own; with Costs on it earns interest. See interest received and paid. Holding more in cash lowers how much of the strategy is exposed to the market, which usually means smaller swings — see How a backtest works for what a run computes. Fincanva doesn't tell you the right amount to hold in cash — see Is this financial advice?.

How risk conditions can lower the invested portion

A defensive stance holds a smaller invested portion, and therefore more cash, than a fully-invested one. When a combined strategy turns defensive under its Risk conditions — its Risk-Off state — it can hold a lower invested portion, moving capital out of the market and into the cash reserve until conditions ease. How and when that switch happens is set in the Risk card, covered under Editing a strategy: the settings cards.

Limits and edge cases

The invested portion ranges from 0% to 100%, and a new profile starts fully invested at 100%. Setting it to 0% holds everything in cash and puts nothing to work — the backtest then just tracks an uninvested balance. The invested portion is a combined-strategy control: a single strategy manages how much capital is at work through its own allocation profile, not through this control.

To see where this control sits among the other settings, read Editing a strategy: the settings cards. For what a strategy and a combined strategy are, see What is a strategy?.

Terms on this page

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Every defined term this page uses, matched against the corpus — including the alias forms the prose actually says.

Fincanva provides no financial advice. Backtests show what would have happened — not what will.

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