You can also use options and futures to set up a risk free position that captures the risk free rate. I throw that out for completeness, with transaction costs and the value of your time it's probably much easier to just buy a Treasury unless you have some specific timing issues.
Which basically means you can get risk free rate without risk. It’s currently around 2.5% per year. You can use some option combos for this, or ETFs like VNLA, which would allow you to continue trading whenever you like on margin against your account balance/positions.
Yes that is true. Some statistical low-probability risk is ok. Even short term US Treasuries have risk as the US government could go bankrupt next month. But the statistical probability for that to happen is tiny. I have done some more research on the matter, and one may earn 3% annual return on selling interleaved CSP's. It's only for parking of cash temporarily as a systematic trader I'm not in a trade all the time.
I love the way no one here suggests to simply manage risk and take high probability trades. Good PNL management for futures works. Just dont try and swing the bat on every trade. Alternatively, picking sound stocks with good fundamentals and good growth matched with cutting loosers quick with good pnl management is also a strat. Im sorry, but this whole thread should be more titled towards ''how do I put my cash in a black box, sit back and let the profits roll in'' ANSWER - start with 2mil and buy a tracker ETF and be happy with your above normal Rates of return.
Since the OP specifically asked for NOT THAT, no one suggested it. Try reading the original post maybe?
The OP posted: "Ok, so I run a strategy that only uses available capital for a small amount of time and runs on a quarterly system. The question is, during the other 2 months between earnings announcements, how can I make an extremely small profit with very little risk? Treasury bonds? Stupidly wide iron condors? Reverse iron condors? Expiration time is 40-60 days. Also, as a side note, can certain government bonds can be used to satisfy margin requirements? For instance, can I use T-bonds to sell strangles against?" Answering that they should "simply manage risk and take high probability trades." is a singularly unhelpful and useless piece of advice in general, but is especially tone deaf to the original poster's request.
IB pays 1.4% on cash deposits. Some brokers may pay more. Most don't. Seeking higher returns beyond that, risk will increase.