Hi!
I'm currently trying to implement a long-short strategy and would appreciate some more information on how it really works with Moonshot. Signals, target weights - is all clear to me, but when it comes to actual orders I am a bit concerned. Moonshot calculates actual amounts of each equity based on NLV and strategy allocation. But a long-short strategy does not affect NLV - the sum of holdings in a long-short strategy is essentially 0. Shorting securities however affect one's margin and I don't actually know if it is a constant fraction of security value or IB applies different margin requirements for shorting different securities? So I'd like to know how exactly Moonshot is calculating amounts of equities in long and short legs of long-short strategy? And how to properly assess actual limits to which one can scale long-short strategy, given account NLV, cash, and margin and, possibly make Moonshot trade within these limits?
Thank you!