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📘 Harvesting Policy v1.0
Policy Name: Harvesting Policy
Version: v1.0
Status: ✅ LOCKED
Effective Date: December 21, 2025
Applies To: Micro Harvesting Portfolio (all active positions)
1. Purpose
This policy governs when and how profits are realized within the Micro Harvesting system.
Its objectives are to:
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Preserve capital velocity
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Enforce mechanical, repeatable decision-making
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Prevent overtrading and profit-chasing
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Maintain psychological insulation
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Keep the system intentionally boring and scalable
Harvesting is treated as a process discipline, not a performance optimization exercise.
2. Core Harvest Rule (Primary and Non-Negotiable)
All harvests shall target 1.5% to 2.0% Net Unrealized Profit/Loss (Net UPL) per completed round trip.
This rule:
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Applies to all active stocks by default
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Defines the economic edge of the Micro Harvesting system
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Overrides discretionary impulses
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Remains unchanged unless formally revised through versioning
This is the default harvest condition and governs the majority of executions.
3. Harvest Intent Classification
Each active stock operates under one Harvest Intent classification.
Harvest Intent refines execution behavior but does not replace the Core Harvest Rule.
3.1 Standard Harvester (Default)
Scope
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Majority of active positions
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Stable, repeatable harvesters
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Typically Level 3–4 stocks
Policy
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Harvest only at 1.5%–2.0% Net UPL
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No early exits
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No discretionary overrides
Standard Harvesters define the baseline performance of the system.
3.2 Volatility Harvester (Restricted Use)
Scope
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Limited to a small subset of stocks
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High-volatility, burst-driven price behavior
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Explicitly designated by the portfolio manager
Primary Target
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1.5%–2.0% Net UPL (unchanged)
Conditional Early Harvest Allowance
Early harvest at ≥1.0% Net UPL is permitted only if:
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Momentum materially deteriorates, or
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Volatility collapses after expansion, or
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Price action stalls and the probability of reaching 1.5% materially declines
Early harvesting is probability-based, not fear-based.
Early harvests are exceptions, not standard practice.
3.3 Graduated Capital Harvester (Level 6 Only)
Scope
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Stocks classified as Level 6
Policy
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Harvest selectively at 1.8%–2.2% Net UPL
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Fewer round trips
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Higher patience threshold
Rationale
Level 6 capital exists to:
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Stabilize the portfolio
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Reduce decision frequency
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Preserve flexibility and optionality
Level 6 harvesting shall be more conservative, not more aggressive.
4. Explicit Prohibitions
The portfolio manager shall not:
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Harvest systematically below 1.5% Net UPL
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Lower targets to increase trade frequency
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Harvest solely because a position is green
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Override UPL thresholds using indicators or signals
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Apply inconsistent harvest rules intraday without designation
Any such behavior constitutes rule erosion.
5. Relationship to Other Governance Protocols
This policy operates in conjunction with:
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Level Promotion / Demotion Protocol v1.0
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SUNSET Governance & Reactivation Protocol v1.0
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Removal Is Neutral Principle
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Level 6 Capital Concentration Rules
In case of conflict:
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Level governance supersedes harvesting discretion
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SUNSET classification overrides harvesting eligibility
6. Review and Amendment
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This policy shall be reviewed only at quarter-end
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No intraday, emotional, or situational amendments are permitted
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Any change requires explicit versioning (v2.0, v3.0, etc.)
Silent modification is prohibited.
7. Meta-Rule
Harvesting is not about taking profits early.
It is about letting a repeatable system work long enough to matter.
Change Log
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v1.0 — December 21, 2025
Initial codification and lock-in of the Micro Harvesting Policy.
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