Cash Reserve moves idle cash into SGOV, a short-term US Treasury ETF, so uninvested money earns a yield instead of sitting flat. It has three settings.

Default: on.

Turns the system on or off. When off, it stops rebalancing entirely. Existing SGOV holdings stay in your account — turning the system off doesn't sell them.

Default: 80%. Range: 1% to 100%.

This is the percentage of your allocatable base that Cash Reserve aims to hold in SGOV.

Not your free cash — your account value, minus the full allocation of every other active income system on the same brokerage account.

An example. Your account is worth $50,000 and you also run Futures Paycheck with a $10,000 allocation. Your allocatable base is $40,000. At the default 80%, Cash Reserve targets $32,000 in SGOV.

If Cash Reserve were your only system, the base would be the full $50,000 and the target $40,000.

Paused and inactive systems are ignored in this calculation — only active ones reserve capital.

Separately from the base calculation, Cash Reserve will never spend cash another active system still needs for its own positions. Buys are capped at what's genuinely spare. Your other systems can't be starved of capital by this one.

Higher puts more to work. Lower keeps more cash immediately on hand in your brokerage account.

SGOV is highly liquid and can be sold any trading day, but settlement isn't instant. If you expect to withdraw at short notice, leave yourself room rather than running at 100%.

Default: off.

For members whose home country taxes US dividends but not capital gains.

SGOV normally pays its return as a monthly dividend. If you're subject to US dividend withholding — commonly 30% for non-US residents — that tax comes off the top.

With this setting on, the system buys SGOV at the start of the month and sells before the dividend date. The fund's value has risen over the month, so you capture essentially the same return as a capital gain instead of a dividend. For members who pay no capital gains tax at home, that means keeping the full return rather than 70% of it.

Turn it on if US dividend withholding applies to you and your country doesn't tax capital gains.

Leave it off if you're a US taxpayer. It adds a buy and a sell every month for no benefit, and capital gains are taxable to you anyway.

If you're unsure how your country treats either, ask your tax advisor before changing it. We can't advise on your tax position, and the right answer depends entirely on where you're resident.

Changes don't apply until you click Save. The new target takes effect on the system's next run.

SGOV tracks short-term Treasury yields, so returns move with interest rates rather than staying fixed. This is the most conservative system we offer — it exists to stop idle cash doing nothing, not to match the options systems.

The system won't trade on every run. It only rebalances when the position has drifted meaningfully from target — see How Cash Reserve rebalances.