Gyroscopic Investing Desert Portfolio with Bitcoin: Rebalancing Strategy

Data Source: from January 2009 to September 2024
Consolidated Returns as of 30 September 2024

Managing the Gyroscopic Investing Desert Portfolio with Bitcoin with a yearly rebalancing, you would have obtained a 67.02% compound annual return in the last 10 Years.

With a quarterly rebalancing, over the same period, the return would have been 7.90%.

How do returns and drawdowns change, implementing different rebalancing strategies?

Rebalancing Strategies

In order to keep risk under control, you should rebalance assets quotes from time to time, so to keep them at the original percentage of the asset allocation.

Rebalancing can be performed in several ways.

At fixed time intervals:
  • Yearly: Jan 1st
  • Half Yearly: Jan 1st, Jul 1st
  • Quarterly: Jan 1st, Apr 1st, Jul 1st, Oct 1st
When a component (at least one) diverges from its original weight beyond a certain threshold (e.g. 5% or 10%).

Portfolio Returns as of Sep 30, 2024

Implementing different rebalancing strategies, the Gyroscopic Investing Desert Portfolio with Bitcoin guaranteed the following returns.

According to the available data source, we assume we built the portfolio on January 2009.

Portfolio returns are calculated in USD, assuming:
  • No fees or capital gain taxes
  • the reinvestment of dividends, if existing
GYROSCOPIC INVESTING DESERT PORTFOLIO WITH BITCOIN RETURNS
Period: January 2009 - September 2024
Annualized Returns
Swipe left to see all data
Return (%) and number of rebalances as of Sep 30, 2024
Rebalancing Strategy 1Y 5Y 10Y MAX
(~16Y)
No Rebalancing 134.80 (0) 50.15 (0) 67.02 (0) 88.41 (0)
Yearly Rebalancing 22.10 (1) 7.71 (5) 9.19 (10) 16.43 (16)
Half Yearly Rebalancing 21.09 (2) 7.45 (10) 7.90 (20) 14.91 (32)
Quarterly Rebalancing 21.35 (4) 7.72 (20) 7.73 (40) 12.07 (63)
5% Tolerance per asset 21.56 (1) 7.91 (6) 7.49 (8) 11.70 (14)
10% Tolerance per asset 22.88 (1) 7.82 (2) 7.50 (3) 13.98 (7)

In order to have complete information about the portfolio, please refer to the Gyroscopic Investing Desert Portfolio with Bitcoin: ETF allocation and returns page.

Performances as of Sep 30, 2024

Historical returns and stats of Gyroscopic Investing Desert Portfolio with Bitcoin, after implementing different rebalancing strategies.

GYROSCOPIC INVESTING DESERT PORTFOLIO WITH BITCOIN PERFORMANCES
Period: January 2009 - September 2024
Swipe left to see all data
Standard Deviation
Max Drawdown (%)
Rebalancing Strategy Return % Std Dev(%) Ret. / Std Dev MaxDD(%) Ret. / MaxDD
No Rebalancing 88.41 (0) 144.48 0.61 -80.54 1.10
Yearly Rebalancing 16.43 (16) 33.89 0.48 -40.72 0.40
Half Yearly Rebalancing 14.91 (32) 14.27 1.04 -15.65 0.95
Quarterly Rebalancing 12.07 (63) 9.35 1.29 -15.64 0.77
5% Tolerance per asset 11.70 (14) 10.02 1.17 -16.29 0.72
10% Tolerance per asset 13.98 (7) 16.66 0.84 -16.74 0.84
(*) Since Jan 2009 (~16 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Sep 30, 2024

Historical Drawdowns of Gyroscopic Investing Desert Portfolio with Bitcoin, after implementing different rebalancing strategies.

GYROSCOPIC INVESTING DESERT PORTFOLIO WITH BITCOIN DRAWDOWNS
Period: January 2009 - September 2024
Swipe left to see all data
Rebalancing
Tolerance per asset
No Rebalancing Yearly Half Yearly Quarterly 5% 10%
-80.54
Dec 2013 - Feb 2017
-40.72
Jul 2011 - Nov 2013
-15.65
Jan 2022 - Feb 2024
-15.64
Jan 2022 - Feb 2024
-16.29
Jan 2022 - Feb 2024
-16.74
Jan 2022 - Feb 2024
-75.54
Jan 2018 - Nov 2020
-23.13
Dec 2013 - Oct 2017
-7.50
Dec 2013 - Mar 2016
-5.90
Jan 2009 - May 2009
-5.90
Jan 2009 - May 2009
-7.01
Jul 2011 - Jun 2012
-73.01
Nov 2021 - Mar 2024
-15.75
Nov 2021 - Jan 2024
-7.05
May 2013 - Nov 2013
-5.72
Dec 2013 - Oct 2015
-5.18
Jan 2018 - Mar 2019
-5.90
Jan 2009 - May 2009
-64.22
Jul 2011 - Jan 2013
-5.90
Jan 2009 - May 2009
-5.90
Jan 2009 - May 2009
-4.32
Feb 2020 - Apr 2020
-4.32
Feb 2020 - Apr 2020
-5.26
Feb 2020 - May 2020
-40.52
Apr 2021 - Oct 2021
-4.32
Feb 2020 - Apr 2020
-4.32
Feb 2020 - Apr 2020
-3.57
Aug 2011 - Jan 2012
-3.57
Aug 2011 - Jan 2012
-4.65
May 2013 - Sep 2013
5 Worst Drawdowns - Average
-66.77 -17.96 -8.08 -7.03 -7.05 -7.91
10 Worst Drawdowns - Average
-40.30 -10.22 -5.49 -4.88 -4.83 -5.37

For a deeper insight, please refer to the Gyroscopic Investing Desert Portfolio with Bitcoin: ETF allocation and returns page.