Extracting crypto profits for traditional markets investments

As you certainly saw in the latest articles I’m still refining my strategy. It’s all a work in progress.

Crypto Portfolio

My current portfolio allocations are:


  • 20%: HODL Passive
  • 10%: BTC Bots
  • 10%: BTC Strategy (BTC HMA)
  • 40%: Big Caps Strategy (HMA Hybrid)
  • 20%: Low Caps Strategy (BMP)

From latest article I did change from 10% fiat to 10% BTC HMA Strategy. By doing that we allow some upside potential without adding too much risk.

Extracting crypto profits

I would like to extract some profits from crypto and reinvest them in traditional markets.   This is always a difficult decision to take, so I decided to automate also this part. My current idea is the following:

  • Every month 1% of the total crypto portfolio will be sold and reinvested in traditional markets. Sources for this 1% are:
    • rewards from the HODL Passive allocation
    • BTC HMA Strategy allocation
  • Every month the allocations are rebalanced to keep them aligned to the predefined weights.
  • The profit extraction is one-way, the money will never go back to crypto.


The advantage of this approach are:

  • Rule-based: no decisions have to be taken
  • Periodic nature:
    • habit forming: the period work creates habits and reduce risks of deviation
    • allows continuous adjustment of the strategy
    • allows dollar cost averaging (DCA) on traditional investments
  • Period rebalancing reallocates profits from high risk/high rewards strategies to more prudent ones.