Withdrawing $5k of profits to rebalance the speculative trading model.
For every $10k in profits (above our $100k baseline capital) we siphon half of the profits in $5k increments.
This allows us to transfer profits from our speculative positions to fund new income trades — or simply to protect capital and reduce the volatility from these more aggressive positions.
Our Spec Model portfolio value closed above $160,000 today. We will withdraw $5,000 of our profits and set the next target level at $165,000.
Of course it’s up to you to manage your own investment allocations. This is just one example of how capital can be moved in and out of our aggressive and conservative models for a more comprehensive wealth management approach.