Managing the Ray Dalio All Weather Portfolio with Bitcoin with a yearly rebalancing, you would have obtained a 84.18% compound annual return in the last 10 Years.
With a quarterly rebalancing, over the same period, the return would have been 8.52%.
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.
At fixed time intervals:
- Yearly: Jan 1st
- Half Yearly: Jan 1st, Jul 1st
- Quarterly: Jan 1st, Apr 1st, Jul 1st, Oct 1st
Portfolio Returns as of Sep 30, 2025
Implementing different rebalancing strategies, the Ray Dalio All Weather Portfolio with Bitcoin guaranteed the following returns.
Portfolio returns are calculated in USD, assuming:
- No fees or capital gain taxes
- the reinvestment of dividends, if existing
| Return (%) and number of rebalances as of Sep 30, 2025 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Rebalancing Strategy | 1Y | 5Y | 10Y |
MAX (~15Y) |
||||
| No Rebalancing | 80.06 | (0) | 60.20 | (0) | 84.18 | (0) | 84.90 | (0) |
| Yearly Rebalancing | 9.23 | (1) | 5.16 | (5) | 9.74 | (10) | 16.83 | (15) |
| Half Yearly Rebalancing | 8.11 | (2) | 4.74 | (10) | 8.52 | (20) | 15.24 | (30) |
| Quarterly Rebalancing | 8.52 | (4) | 4.80 | (20) | 8.46 | (40) | 12.23 | (59) |
| 5% Tolerance per asset | 9.77 | (1) | 5.34 | (4) | 8.82 | (8) | 12.76 | (16) |
| 10% Tolerance per asset | 11.70 | (1) | 5.40 | (2) | 8.46 | (3) | 14.53 | (6) |
In order to have complete information about the portfolio, please refer to the Ray Dalio All Weather Portfolio with Bitcoin: ETF allocation and returns page.
Performances as of Sep 30, 2025
Historical returns and stats of Ray Dalio All Weather Portfolio with Bitcoin, after implementing different rebalancing strategies.
|
Standard Deviation
|
Max Drawdown (%)
|
|||||
|---|---|---|---|---|---|---|
| Rebalancing Strategy | Return % | Std Dev(%) | Ret. / Std Dev | MaxDD(%) | Ret. / MaxDD | |
| No Rebalancing | 84.90 | (0) | 137.79 | 0.62 | -79.49 | 1.07 |
| Yearly Rebalancing | 16.83 | (15) | 35.79 | 0.47 | -36.76 | 0.46 |
| Half Yearly Rebalancing | 15.24 | (30) | 15.39 | 0.99 | -21.73 | 0.70 |
| Quarterly Rebalancing | 12.23 | (59) | 10.66 | 1.15 | -22.01 | 0.56 |
| 5% Tolerance per asset | 12.76 | (16) | 11.38 | 1.12 | -21.63 | 0.59 |
| 10% Tolerance per asset | 14.53 | (6) | 18.06 | 0.80 | -24.43 | 0.59 |
Drawdowns as of Sep 30, 2025
Historical Drawdowns of Ray Dalio All Weather Portfolio with Bitcoin, after implementing different rebalancing strategies.
|
Rebalancing
|
Tolerance per asset
|
||||
|---|---|---|---|---|---|
| No Rebalancing | Yearly | Half Yearly | Quarterly | 5% | 10% |
|
-79.49
Dec 2013 - Feb 2017
|
-36.76
Jul 2011 - Oct 2013
|
-21.73
Jan 2022 - Nov 2024
|
-22.01
Jan 2022 - Nov 2024
|
-21.63
Jan 2022 - Nov 2024
|
-24.43
Nov 2021 - Nov 2024
|
|
-75.46
Jan 2018 - Nov 2020
|
-23.49
Dec 2013 - Jul 2017
|
-9.38
May 2013 - Nov 2013
|
-6.20
May 2013 - Nov 2013
|
-7.03
Jan 2018 - Apr 2019
|
-7.29
May 2013 - Oct 2013
|
|
-72.99
Nov 2021 - Mar 2024
|
-21.82
Nov 2021 - Nov 2024
|
-7.66
Dec 2013 - Aug 2014
|
-5.92
Feb 2015 - Mar 2016
|
-6.20
May 2013 - Nov 2013
|
-6.81
Aug 2016 - May 2017
|
|
-40.50
Apr 2021 - Oct 2021
|
-4.85
Sep 2018 - Mar 2019
|
-6.09
Feb 2015 - Mar 2016
|
-5.82
Dec 2013 - May 2014
|
-5.99
Feb 2015 - Mar 2016
|
-6.35
Feb 2015 - May 2016
|
|
-36.76
Jul 2011 - Dec 2012
|
-3.51
Dec 2024 - Feb 2025
|
-5.60
Aug 2016 - Apr 2017
|
-5.64
Aug 2016 - Apr 2017
|
-4.76
Aug 2016 - Feb 2017
|
-4.97
Sep 2018 - Mar 2019
|
| 5 Worst Drawdowns - Average | |||||
| -61.04 | -18.09 | -10.09 | -9.12 | -9.12 | -9.97 |
| 10 Worst Drawdowns - Average | |||||
| -38.56 | -10.27 | -6.79 | -6.28 | -6.08 | -6.53 |
For a deeper insight, please refer to the Ray Dalio All Weather Portfolio with Bitcoin: ETF allocation and returns page.
