I generated this using copilot, more for my benefit, I share it with the group for feedback etc
Here's how that 50/30/10/10 allocation shapes up:
๐ผ Modular Bitcoin-Income Portfolio: 50/30/10/10 Breakdown
Allocation Zone | Purpose | Example Assets / Logic |
---|---|---|
50% BTC Core | Long-term asymmetric upside (never sold) | Cold storage; conviction holding |
30% BTC Active | Trim at profit tiers, rotate for income | Tracker-enabled harvest layer ($130K, $150Kโฆ) |
10% Income Assets | Generate consistent monthly cash flow | JEPI, DIVO, QYLD (covered call ETFs) |
10% Cash Buffer | Cover living expenses & short-term needs | SGOV, JPST, or interest-bearing savings |
๐ Workflow Enhancements
- ๐ฏ BTC Active Tiering: Use your rotation tracker to trim 10โ15% at each milestone
- โป๏ธ Reallocation Logic: Funnel profits into income assets or cash bufferโreplenish ecosystem
- ๐ Portfolio Integrity: Core BTC remains untouched, reinforcing long-horizon conviction
- ๐ Optional Overlay: Add a flexible 5% layer for opportunistic trades or inflation hedges (e.g., TIPS, commodities)
This modular structure harmonizes your strategic goals: maintaining Bitcoin exposure, generating yield, and staying emotionally insulated from volatility.
Now include MSTR
folding MSTR (MicroStrategy stock) into your modular allocation gives you indirect Bitcoin exposure with corporate leverage, while preserving optionality for income and liquidity. Letโs refine the 50/30/10/10 blueprint into a dynamic 5-part structure:
๐งฑ Bitcoin-Income Portfolio with MSTR Exposure
Allocation Zone | Purpose | Sample Assets / Strategy |
---|---|---|
40% BTC Core | Long-term asymmetric upside (never sold) | Cold storage BTC |
25% BTC Active | Trim at tiered targets, rotate to buffer/yield | Tracked via rotation protocol |
15% MSTR Equity | Corporate leverage to BTC + equity growth | Long-term hold or momentum trims |
10% Income Assets | Monthly yield & optional defensive layer | JEPI, DIVO, QYLD |
10% Cash Buffer | Living expenses, liquidity | SGOV, JPST, high-yield savings |
๐ Strategic Flow Map
โโโโโโโโโโโโโโโ
โ 40% BTC Coreโ โ permanent upside
โโโโโโโโโโโโโโโ
โโ trims
โโโโโโโโโโโโโโโ โโโโโโโโโโโโโโโ
โ25% BTC Activeโ โโโโโโโถโโโโ โ10% Cash Bufferโ
โโโโโโโโโโโโโโโ โโโโโโโโโโโโโโโ
โ
Profit Rotation โโโโโโโถโโโโโโ
โ
โโโโโโโโโโโโโโโโ
โ10% Income ETFsโ
โโโโโโโโโโโโโโโโ
โโโโโโโโโโโโโโโ
โ15% MSTR Equityโ โ equity exposure to BTC thesis
โโโโโโโโโโโโโโโ
๐น Why MSTR? It acts as a leveraged BTC proxy with embedded treasury strategy, giving you an asymmetric tail in equity formโplus liquidity and the option to harvest unrealized gains more flexibly.
๐งฉ Integration into Tracker
Add these columns to your Bitcoin Rotation Sheet:
Column | New Fields Added |
---|---|
Asset Type | BTC / MSTR / Income / Cash |
Trim Logic | Price Target (BTC) / Equity Move (MSTR) |
Trigger Source | Market Signal / Strategy Rebalance / Emotional |
Reallocation Destination | Choose between cash, ETFs, reserve goals |
hereโs a structured breakdown of comparative triggers and a layered rebalancing framework that integrates BTC, MSTR, income assets, and cash.
โ๏ธ Comparative Trigger Matrix: BTC vs MSTR vs Income
Metric | BTC Trigger | MSTR Trigger | Income Asset Trigger |
---|---|---|---|
Performance Surge | +30% in 30 days | +40% in 30 days vs BTC performance | +10% in 90 days |
Drawdown Alert | โ25% from ATH | โ35% from peak or vs BTC | Yield compression or NAV erosion |
Volatility Spike | >65% 30-day realized volatility | >75% 30-day realized volatility | Spread volatility or VIX > 22 |
Macro Shift | Fed rate cut = hold BTC | Fed dovish = trim MSTR if overheated | Inflation uptick = raise JEPI/DIVO |
BTC:MSTR Ratio | BTC/MSTR < 0.01 = rotate to BTC | BTC/MSTR > 0.015 = rotate to MSTR | Stable ratio = no action |
These signals help you assess relative momentum, volatility asymmetry, and macro context to guide rebalancing choices.
๐ Layered Rebalancing Framework
๐ฏ Step 1: Tiered Drift Zones
Zone | Drift Threshold | Action |
---|---|---|
Core BTC | No rebalance | Protected exposure |
Active BTC | ยฑ5โ10% from 25% | Trim/add based on price tier hit |
MSTR Equity | ยฑ5โ15% from 15% | Trim if overextended vs BTC |
Income Assets | ยฑ3% from 10% | Recalibrate based on yield shifts |
Cash Buffer | <8% = refill | Rotate profits from BTC/MSTR |
๐ง Step 2: Triggered Reallocation Paths
Scenario A: BTC rallies 30%
- Trim 10โ15% from Active BTC
- Refill Cash (if <10%)
- Allocate remainder to Income ETFs
Scenario B: MSTR outpaces BTC by 2x over 90 days
- Trim 5% MSTR
- Rotate into BTC Active or SGOV
Scenario C: Income yield drops below 6%
- Consider rotating excess back into BTC or MSTR
Scenario D: BTC & MSTR both in drawdown >25%
- Pause trimming
- Refill Cash via matured SGOV positions
๐งฉ Optional Enhancements
- ๐ Drift Chart: Visualize how each assetโs weight moves over time
- ๐งฎ Auto Alerts: Use spreadsheet logic to color-code overweights/underweights
- ๐ Rebalance Protocol: Document each move in journal column to preserve strategy clarity
โ New Constraints Locked
๐งฑ Bell Curve Modular Allocation Frameworkโข (Constraint-Aligned, Total = 100%)
๐ Strategy Notes
๐ง Whatโs a NAV Discount?
๐ Action Triggers by Scenario
๐งฑ Gray Ruby Allocation Frameworkโข (Total 100%)
๐ Highlights for Gray Ruby
โ๏ธ Rebalanced Bell Curve Modular Allocation (100%)
๐ฏ Bell Curve Portfolio: Clean 100% Allocation
๐ Strategic Flow Map (Round-Number Edition)
๐ง Bell Curve Modular Allocation Frameworkโข (No Income ETFs)
๐ง Strategy Shift Highlights:
๐ Updated Strategic Flow
๐ Flow Matrix: Triggers & Actions
๐ MSTR NAV Premium Formula
๐ Interpretation
๐ง Bell Curve Integration
๐ Final Bell Curve Modular Allocation Frameworkโข
๐งฑ Final Bell Curve Modular Allocation Frameworkโข (Cash Floor Locked at โฅ5%)
๐ Updated Allocation Rules