Level 6 Harvesting Override Rule v1.0

Micro Harvesting Governance Framework (v1.0)

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At Level 6, harvesting shifts from frequent action to deliberate restraint.

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I. Purpose of the Rule

The Level 6 Harvesting Override Rule defines how RTS harvesting behavior changes once a stock is promoted to Level 6, in recognition of increased capital concentration and portfolio-level risk.

This rule exists to address a governance gap:

Existing volatility-based harvesting bands were designed for tactical efficiency, not for high-concentration exposure.

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II. Scope of Application

This rule applies only to stocks that meet ALL of the following conditions:

1. The stock is officially promoted to Level 6

2. The stock holds a material portfolio weight

3. The stock operates with limited remaining defensive optionality

4. The position is governed under the Terminal Allocation Doctrine or is approaching it

Stocks below Level 6 are not affected by this rule.

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III. Relationship to Existing Volatility-Based Harvesting Bands

Volatility-based harvesting bands (e.g. 0.3%–1.8% for low-volatility stocks) remain structurally valid within the Micro Harvesting framework.

However:

At Level 6, volatility-based harvesting bands are deprioritized in favor of structural surplus harvesting.

This is not a replacement of rules, but a governance override.

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IV. Core Principle

At Level 6, harvesting must reduce structural exposure — not generate tactical activity.

RTS harvesting is permitted only when price movement represents clear surplus, not short-term noise.

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V. Level 6 Harvesting Zones  

For Level 6 positions, RTS harvesting is evaluated using cost-based surplus zones, not day-to-day volatility bands.

These zones are:

• Significantly wider than standard volatility bands

• Triggered less frequently

• Executed more conservatively

• Designed to decompress capital concentration

The exact numeric zones are stock-specific and must be documented separately (e.g., PGOLD RTS Harvest Map v1.0).

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VI. Prohibited Practices Under This Rule

Once a stock is at Level 6, the following are explicitly prohibited:

1. Micro-harvesting based on low-volatility bands
   (e.g., repeated 0.5%–1% rotations)

2. Noise-based harvesting that does not materially reduce exposure

3. Harvesting motivated by psychological relief

4. Using volatility bands to justify frequent churn

Any of the above constitutes governance drift, not tactical execution.

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VII. Allowed Practices Under This Rule

The following remain explicitly allowed:

1. RTS harvesting at documented surplus zones

2. Gradual, staggered reduction of RTS exposure

3. Complete inaction when surplus zones are not reached

4. Reversion to standard volatility bands only after demotion from Level 6

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VIII. Interaction with Other Governance Rules

This rule operates alongside and in hierarchy with:

• Level 6 Graduation Rule v1.0

• Level Promotion / Demotion Protocol v1.0

• Terminal Allocation Doctrine

• Multi-Level 6 Correlation Limits

• RTS Doctrine

In the event of conflict, the following precedence applies:

Terminal Allocation Doctrine
→ Level 6 Harvesting Override Rule
→ Volatility-Based Harvesting Bands

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IX. Exit from the Override

A stock exits the Level 6 Harvesting Override only when:

1. It is formally demoted from Level 6, or

2. Its capital exposure is sufficiently reduced and documented, or

3. A system-wide governance revision is enacted outside live exposure

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X. Governance Intent

This rule exists to prevent the most subtle failure mode in mature systems:

Doing many small, correct actions that collectively change nothing.

At Level 6, restraint is not optional — it is the strategy.

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XI. Status

• Version: v1.0

• Category: Governance → Level Rules

• Applies To: All Level 6 positions

• Effective: Upon publication in the Governance Hub | February 14, 2026

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🔒 Level 6 Harvesting Band Override

Volatility-Class Expansion (Governance Addendum v1.0)

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I. Purpose of This Addendum

This addendum defines the structural harvesting bands applicable to Level 6 positions, segmented by volatility classification.

It exists to resolve a known conflict:

Standard harvesting bands are optimized for tactical efficiency,
while Level 6 positions require harvesting behavior that reduces structural exposure, not activity.

Accordingly, Level 6 harvesting bands intentionally override standard volatility-based bands while the position remains at Level 6.

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II. Governance Hierarchy (Restated for Clarity)

When a stock is at Level 6, the following precedence applies:

Terminal Allocation Doctrine
→ Level 6 Harvesting Override Rule
→ Level 6 Harvesting Bands (This Addendum)
→ Standard Volatility-Based Harvesting Bands

Standard bands remain valid only after demotion from Level 6.

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III. Core Design Principle (Applies to All Volatility Classes)

At Level 6:

• Harvesting must be infrequent

• Harvesting must be meaningful

• Harvesting must reduce portfolio-level risk

• Harvesting must not be triggered by short-term noise

As volatility increases, harvesting bands widen, not narrow.

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IV. Level 6 Harvesting Bands by Volatility Class

All bands are expressed in UPL (Unrealized Profit/Loss) relative to average cost, inclusive of transaction costs.

These bands are permissions, not targets.

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🟢 A. LOW VOLATILITY STOCKS

(e.g., PGOLD, MER, TEL)

Standard Band (Non-Level 6):
0.3% – 1.8%

Level 6 Override Bands:

Zone	UPL Range	Governance Intent
L6-LV-1	+3.0% to +4.5%	Initial surplus confirmation
L6-LV-2	+5.5% to +6.5%	Measured decompression
L6-LV-3	+7.5% to +9.0%	Structural relief
L6-LV-4	+10.5% to +12.0%	Excess surplus capture

Behavioral Notes:

• Micro-harvesting below +3% UPL is prohibited

• Anchor shares remain untouched

• One RTS block per zone unless otherwise documented

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🟡 B. MEDIUM VOLATILITY STOCKS

(e.g., SCC, DMC, ICT)

Standard Band (Non-Level 6):
~1.8% – 3.0%

Level 6 Override Bands:

Zone	UPL Range	Governance Intent
L6-MV-1	+4.5% to +6.0%	Initial surplus confirmation
L6-MV-2	+7.5% to +9.0%	Controlled decompression
L6-MV-3	+10.5% to +13.0%	Structural relief
L6-MV-4	+15.0% to +18.0%	Excess surplus capture

Behavioral Notes:

• Harvesting below +4.5% UPL is prohibited

• Harvesting frequency must be lower than non-Level 6 behavior

• Each execution must materially reduce RTS exposure

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🔴 C. HIGH VOLATILITY STOCKS

(e.g., FNI, speculative cyclicals)

Standard Band (Non-Level 6):
~3.0% – 5.0% (or stock-specific)

Level 6 Override Bands:

Zone	UPL Range	Governance Intent
L6-HV-1	+6.0% to +8.0%	Initial surplus confirmation
L6-HV-2	+10.0% to +13.0%	Controlled decompression
L6-HV-3	+15.0% to +18.0%	Structural relief
L6-HV-4	+20.0% to +25.0%	Excess surplus capture

Behavioral Notes:

• Early harvesting is intentionally delayed

• Volatility is expected; patience is mandatory

• Harvesting is allowed only when surplus is unequivocal

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V. Cross-Cutting Restrictions (All Volatility Classes)

Regardless of volatility class, the following apply at Level 6:

• ❌ No harvesting for psychological relief

• ❌ No harvesting to “prove correctness”

• ❌ No harvesting triggered by intraday spikes alone

• ❌ No anchor liquidation

RTS harvesting must always be:

documented, spaced, and non-reactive

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VI. Exit from Level 6 Harvesting Bands

A stock exits the Level 6 Harvesting Band Override when:

1. It is formally demoted from Level 6, or

2. RTS exposure is sufficiently reduced and documented, or

3. A system-wide governance revision is enacted outside live exposure

Upon exit, standard volatility-based harvesting bands resume.

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VII. Governance Intent

This addendum exists to prevent a subtle but dangerous behavior:

Applying small-stock habits to big-stock exposure.

At Level 6, harvesting is no longer about efficiency.
It is about respecting capital trust.

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VIII. Status

• Version: v1.0

• Category: Governance → II. Capital Trust & Level Governance

• Applies To: All Level 6 positions

• Effective: Upon publication with the Level 6 Harvesting Override Rule | February14, 2026

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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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