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