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📘 DHER (Daily Harvest Efficiency Ratio) — Definition & Use
Policy Name: DHER (Daily Harvest Efficiency Ratio) — Definition & Use
Version: v1.0
Status: ✅ LOCKED
Effective Date: December 21, 2025
Applies To: Micro Harvesting Portfolio (portfolio-level diagnostics)
1. Purpose
This page defines DHER and prescribes its proper use and limits within the Micro Harvesting system.
Its objectives are to:
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Provide a normalized diagnostic of harvest output
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Prevent metric-driven overtrading
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Separate performance measurement from execution authority
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Preserve mechanical discipline during quiet or volatile periods
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Ensure metrics inform governance without creating pressure
DHER is a diagnostic lens, not a trigger.
2. Definition of DHER
Daily Harvest Efficiency Ratio (DHER) is defined as:
A normalized ratio measuring realized harvest output relative to deployed capital over a given period, used to assess harvesting efficiency without prescribing action.
DHER evaluates how efficiently the system harvested—not whether it should act.
3. What DHER Measures
DHER is designed to reflect:
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Consistency of realized harvests
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Capital productivity over time
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Alignment between deployment and outcomes
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Portfolio-level efficiency trends
DHER is comparative and contextual, not absolute.
4. What DHER Does Not Measure
DHER does not measure:
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Forecasted performance
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Intraday opportunity quality
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Individual stock potential
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Urgency to trade
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Compliance with harvest thresholds
DHER is blind to future opportunity by design.
5. Proper Use of DHER
DHER may be used to:
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Compare efficiency across periods
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Identify prolonged under- or over-activity
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Support quarter-end reviews
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Validate that harvesting remains systematic
DHER should be reviewed at:
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Portfolio reviews
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Scheduled checkpoints
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Quarter-end governance assessments
6. Improper Use of DHER (Prohibited)
The portfolio manager shall not:
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Use DHER to justify sub-threshold harvesting
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Increase trade frequency to “improve” DHER
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Compare DHER day-to-day as a scorecard
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Treat low DHER as failure or high DHER as success
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Override Harvesting Policy based on DHER readings
Any action taken solely to influence DHER is a governance violation.
7. Relationship to Harvesting Policy
DHER is subordinate to the Harvesting Policy v1.0.
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Harvest thresholds govern exits
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DHER observes outcomes
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DHER never authorizes trades
If Harvesting Policy and DHER appear to conflict, policy prevails.
8. Relationship to Deployment and Levels
DHER should be interpreted alongside:
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% Deployed Capital
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Level distribution
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RTS availability
Low DHER during:
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Low deployment, or
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Steady-State conditions
is expected and acceptable.
9. Behavioral Safeguards
The portfolio manager shall not:
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Chase activity to avoid low DHER readings
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Reduce buffers to raise efficiency optics
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Compare DHER across incompatible periods
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Attach emotional meaning to single data points
Metrics exist to inform restraint, not provoke action.
10. Reporting and Dashboard Treatment
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DHER is displayed for visibility only
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No color-coding or alerts are required
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DHER should be contextualized with notes during reviews
Silence in response to DHER is valid when rules are satisfied.
11. Meta-Rule
DHER explains what happened.
It does not decide what happens next.
Change Log
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v1.0 — December 21, 2025
Initial codification and lock-in of the DHER Definition & Use.
DHER — Daily Harvest Efficiency Ratio
Primary daily execution metric used to evaluate Micro Harvesting behavior and discipline.
👉 Read full explanation and evaluation ranges here:
DHER & RHER Metrics — Detailed Guide
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