09 Non-Action Principle

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Visual articulation of the Non-Action Principle, affirming that deliberate inaction is a valid, disciplined governance decision within Micro Harvesting.

📘 Non-Action Is a Valid Action Principle

Policy Name: Non-Action Is a Valid Action Principle
Version: v1.0
Status: ✅ LOCKED
Effective Date: December 21, 2025
Applies To: Micro Harvesting Portfolio (all strategies, levels, and operating states)

1. Purpose

This principle governs the intentional acceptance of inaction as a legitimate, rule-compliant portfolio decision within the Micro Harvesting system.

Its objectives are to:

Eliminate action bias and forced trading
Protect capital from low-quality decisions
Reinforce discipline during quiet or uncertain periods
Normalize patience as a core operating behavior
Preserve psychological and operational stability

Inaction is a decision, not a failure to decide.

2. Definition of Valid Non-Action

Valid Non-Action is defined as:

The deliberate choice to refrain from trading or reallocating capital when no rule-defined condition for action is present.

Non-action is intentional, not accidental.

3. Governing Principles (Non-Negotiable)

Action requires eligibility; inaction requires none.
Absence of opportunity is not a problem to be solved.
Capital protection precedes capital deployment.
Waiting is a strategy when governed by rules.
Silence after review is compliance.

4. Situations Where Non-Action Is Mandatory

Non-action shall be treated as the correct response when:

Harvest thresholds are not met
No stock qualifies for promotion or demotion
Deployment targets are within acceptable ranges
Volatility is insufficient or non-directional
SUNSET or buffer capital requires no intervention

Acting under these conditions constitutes rule violation.

5. Relationship to Cash and Undeployed Capital

Undeployed capital is:

A structural buffer
A source of optionality
A volatility absorber

Cash is not “idle.”
Cash is deployed for flexibility.

6. Interaction With Harvesting and Levels

Non-action reinforces:

The Harvesting Policy by preventing premature exits
The Level system by resisting emotional promotions or demotions
The Steady-State Harvest Concept by maintaining calm operation

Inaction is the default state between governed actions.

7. Prohibited Interpretations

The portfolio manager shall not interpret non-action as:

Missed opportunity
Lack of conviction
Underperformance
Indecision
Need for system modification

These interpretations introduce action bias.

8. Behavioral Safeguards

The portfolio manager shall not:

Create trades to feel productive
Lower thresholds to justify action
Substitute analysis for execution urgency
Treat boredom as a signal to intervene

Boredom is often evidence of discipline.

9. Relationship to Other Governance Protocols

This principle operates in conjunction with:

Harvesting Policy v1.0
Steady-State Harvest Concept
Micro Harvesting Portfolio Structure Rule
Removal Is Neutral Principle
Quarterly Reset & Capital Containment Rule

In case of conflict:

Governance rules override emotional impulse.

10. Meta-Rule

If no rule is triggered,
the correct action is to do nothing.

Change Log

v1.0 — December 21, 2025
Initial codification and lock-in of the Non-Action Is a Valid Action Principle.

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