Home › Micro Harvesting Series › Governance Hub › Capital Trust & Level Governance › Level Promotion / Demotion Protocol v1.0

Hindi lahat ng pagdagdag ng kapital ay progreso—minsan, kailangang patunayan muna kung karapat-dapat itong umakyat ng level.

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Hindi lahat ng stock dapat lumaki agad ang kapital.
Sa Micro Harvesting, ang level ay hindi reward—ito ay responsibilidad.
Ang protocol na ito ang nagsisilbing guardrail kung kailan dapat umakyat, bumaba, o tumigil muna ang isang posisyon.

← Previous | Next → | 📘 Micro Harvesting Series Index | 📊 Public Dashboard II

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LEVEL PROMOTION / DEMOTION PROTOCOL v1.0

Micro Harvesting Portfolio Governance Doctrine

Effective Date: January 16, 2026
System: Micro Harvesting
Scope: Portfolio Control, Capital Graduation, Conviction Management

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(Operational Definition)

This protocol defines how stocks move between Levels, how long they must remain, and under what conditions they are promoted, demoted, or sunset, independent of emotion, narrative, or historical outcome.

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• Governance Hub | 03 Capital Graduation
• Governance Hub | 04 Level Governance
• Governance Hub | 05 Level 6 Limits

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LEVEL 1 — PROBE / DISCOVERY

Purpose

To extract behavioral information from a stock at minimal capital risk.

Capital Allocation

• ₱2,000 – ₱4,000 per stock

• No capital stacking allowed

Operational Characteristics

• Single micro entry

• No expectation of daily contribution

• Harvest target may be as low as ₱30–₱50

• RTS allowed but not required

Promotion Criteria → Level 2

A stock may be promoted to Level 2 if ALL conditions are met:

1. At least 2 completed green exits

2. No rule violations (no averaging, no panic exits)

3. Demonstrates intraday or short-term volatility sufficient for harvesting

4. Requires no extraordinary monitoring effort

Demotion / Exit

• Failure to turn green after reasonable time → remains Pending Harvest

• No forced demotion; inactivity is acceptable

• Stock may be sunset directly from Level 1

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LEVEL 2 — ACTIVE ROTATION (EARLY CORE)

Purpose

To validate repeatability under normal Micro Harvesting conditions.

Capital Allocation

• ₱6,000 – ₱8,000 per stock

Operational Characteristics

• RTS is active

• Expected to complete multiple harvest cycles

• Typical harvest range: +0.50% to +1.00% UPL

• Expected profit per cycle: ₱50–₱100

Monitoring Expectation

• Regular but not continuous

• Stock must justify screen time

Promotion Criteria → Level 3

A stock may be promoted to Level 3 if ALL conditions are met:

1. At least 5 successful harvest cycles

2. Demonstrates consistent bid–ask responsiveness

3. Capital redeployment is smooth (no prolonged stalls)

4. Harvesting behavior remains emotionally light

Demotion Criteria → Level 1 or Sunset

• Volatility deteriorates

• Harvest cycles become sporadic

• Stock demands disproportionate attention
  → Demote to Level 1 or Sunset

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LEVEL 3 — ACTIVE ROTATION (PROVEN CORE)

Purpose

To serve as a reliable daily or weekly contributor to Micro Harvesting output.

Capital Allocation

• ₱8,000 – ₱12,000 per stock

Operational Characteristics

• RTS is fully operational

• Expected to cycle frequently

• Typical harvest range: +0.80% to +1.50% UPL

• Expected profit per cycle: ₱100–₱150

Role in the System

• Forms the primary harvesting engine

• Replaceable but trusted

• No emotional attachment

Promotion Criteria → Level 4

A stock may be promoted to Level 4 if ALL conditions are met:

1. Sustained performance over multiple weeks

2. Low-stress harvesting profile

3. Anchor position begins to matter more than RTS

4. Reduced urgency to trade the stock daily

Demotion Criteria → Level 2 or Sunset

• Decrease in harvest frequency

• Structural volatility loss

• Better alternatives emerge
  → Demote to Level 2 or Sunset

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LEVEL 4 — STABILIZED CONTRIBUTOR

Purpose

To provide capital stability with optional harvesting, not constant rotation.

Capital Allocation

• ₱15,000 – ₱30,000 per stock

Operational Characteristics

• Anchor board lot dominates

• RTS reduced or selective

• Wider harvest bands

• Lower monitoring intensity

Promotion Criteria → Level 5 (Implicit)

• Sustained stability over time

• Capital naturally grows

• RTS becomes secondary or optional

• Stock functions as a system stabilizer

Demotion Criteria → Level 3 or Sunset

• Structural deterioration

• Thesis invalidation

• Capital efficiency declines

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LEVEL 5 — TRANSITIONAL (IMPLICIT)

Purpose

To represent unforced maturity approaching long-term conviction.

Capital Allocation

• ₱30,000 – ₱60,000 per stock

Operational Characteristics

• RTS minimal or inactive

• Anchor exposure dominates

• No pressure to harvest

• Stock behaves like a permanent holding

Promotion Criteria → Level 6

• Long-term rule compliance

• Proven resilience across cycles

• Explicit decision to concentrate capital

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LEVEL 6 — GRADUATED CONVICTION

Purpose

To hold earned concentration, not speculative exposure.

Capital Allocation

• ₱60,000+ per stock

Operational Characteristics

• Anchor-only mindset

• RTS generally inactive

• Harvesting is opportunistic, not required

• Capital compounds through time, not activity

Demotion Criteria

• Only via explicit system-level reassessment

• Never triggered by short-term price movement

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SUNSET — DEACTIVATED STATUS

Definition

A stock marked SUNSET is:

• No longer operational for harvesting

• RTS fully removed

• Capital redeployed elsewhere

Key Rules

• Sunset is capital management, not failure

• Anchor position may remain

• Reactivation is permitted under a separate protocol

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GOVERNING PRINCIPLES

1. No forced promotions

2. Capital earns its level

3. Demotion is a feature, not a punishment

4. Sunset preserves system efficiency

5. Levels describe behavior, not belief

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🔗 Quick Links

Micro Stock Trader Global Index · Micro Harvesting Master Index

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📌 Shariah Compliance Advisory (Updated Nov 26, 2025)

The PSE has confirmed that its Shariah screening program is currently paused, with no new lists to be released until their internal review is completed. Although news outlets reported quarterly updates up to mid-2025, these later lists are no longer accessible on the PSE website.

For now, the PSE’s Shariah-Compliant Securities page and all past lists have been removed from the public website. The December 24, 2024 list is the last official version in Micro Stock Trader’s possession, downloaded before the page was taken down, although other investors may still hold later copies such as the reported July 4, 2025 release.

All halal-focused strategies under Micro Stock Trader will use a conservative, self-screened approach until official guidance resumes, in shā’ Allāh.

• Micro Stock Trader: 2024 List of Shariah-Compliant Stocks at PSE – As of December 25, 2024

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Disclaimer

This post is for educational and documentation purposes only. It is not investment advice. Perform your own due diligence and consult qualified financial professionals before making investment decisions. All strategies, frameworks, and examples described here reflect the personal methodologies of Micro Stock Trader and are not guarantees of future performance.

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