Ray Dalio All Weather Portfolio with Bitcoin: Rebalancing Strategy

Data Source: from January 2009 to October 2024
Consolidated Returns as of 31 October 2024

Managing the Ray Dalio All Weather Portfolio with Bitcoin with a yearly rebalancing, you would have obtained a 70.26% compound annual return in the last 10 Years.

With a quarterly rebalancing, over the same period, the return would have been 7.35%.

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 Oct 31, 2024

Implementing different rebalancing strategies, the Ray Dalio All Weather 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
RAY DALIO ALL WEATHER PORTFOLIO WITH BITCOIN RETURNS
Period: January 2009 - October 2024
Annualized Returns
Swipe left to see all data
Return (%) and number of rebalances as of Oct 31, 2024
Rebalancing Strategy 1Y 5Y 10Y MAX
(~16Y)
No Rebalancing 102.52 (0) 50.13 (0) 70.26 (0) 89.01 (0)
Yearly Rebalancing 22.73 (1) 5.44 (5) 8.48 (10) 16.28 (16)
Half Yearly Rebalancing 21.95 (2) 5.33 (10) 7.35 (20) 14.87 (32)
Quarterly Rebalancing 22.53 (4) 5.67 (20) 7.25 (40) 12.07 (64)
5% Tolerance per asset 23.39 (0) 5.91 (5) 7.66 (8) 11.90 (20)
10% Tolerance per asset 24.75 (0) 5.36 (1) 7.10 (2) 12.67 (7)

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 Oct 31, 2024

Historical returns and stats of Ray Dalio All Weather Portfolio with Bitcoin, after implementing different rebalancing strategies.

RAY DALIO ALL WEATHER PORTFOLIO WITH BITCOIN PERFORMANCES
Period: January 2009 - October 2024
Swipe left to see all data
Standard Deviation
Max Drawdown (%)
Rebalancing Strategy Return % Std Dev(%) Ret. / Std Dev MaxDD(%) Ret. / MaxDD
No Rebalancing 89.01 (0) 144.30 0.62 -80.52 1.11
Yearly Rebalancing 16.28 (16) 34.67 0.47 -36.76 0.44
Half Yearly Rebalancing 14.87 (32) 15.14 0.98 -21.73 0.68
Quarterly Rebalancing 12.07 (64) 10.69 1.13 -22.01 0.55
5% Tolerance per asset 11.90 (20) 10.50 1.13 -21.63 0.55
10% Tolerance per asset 12.67 (7) 11.95 1.06 -24.43 0.52
(*) Since Jan 2009 (~16 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Oct 31, 2024

Historical Drawdowns of Ray Dalio All Weather Portfolio with Bitcoin, after implementing different rebalancing strategies.

RAY DALIO ALL WEATHER PORTFOLIO WITH BITCOIN DRAWDOWNS
Period: January 2009 - October 2024
Swipe left to see all data
Rebalancing
Tolerance per asset
No Rebalancing Yearly Half Yearly Quarterly 5% 10%
-80.52
Dec 2013 - Feb 2017
-36.76
Jul 2011 - Oct 2013
-21.73
Jan 2022 - In progress
-22.01
Jan 2022 - In progress
-21.63
Jan 2022 - In progress
-24.43
Nov 2021 - In progress
-75.54
Jan 2018 - Nov 2020
-23.49
Dec 2013 - Jul 2017
-11.55
Jan 2009 - Sep 2009
-11.55
Jan 2009 - Sep 2009
-11.55
Jan 2009 - Sep 2009
-11.55
Jan 2009 - Sep 2009
-73.01
Nov 2021 - Mar 2024
-21.82
Nov 2021 - In progress
-9.38
May 2013 - Nov 2013
-6.20
May 2013 - Nov 2013
-7.03
Jan 2018 - Apr 2019
-6.81
Aug 2016 - May 2017
-63.93
Jul 2011 - Jan 2013
-11.55
Jan 2009 - Sep 2009
-7.66
Dec 2013 - Aug 2014
-5.92
Feb 2015 - Mar 2016
-6.20
May 2013 - Nov 2013
-6.35
Feb 2015 - May 2016
-40.52
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
-6.20
May 2013 - Nov 2013
5 Worst Drawdowns - Average
-66.70 -19.69 -11.28 -10.30 -10.48 -11.07
10 Worst Drawdowns - Average
-40.84 -11.12 -7.58 -7.08 -6.91 -7.25

For a deeper insight, please refer to the Ray Dalio All Weather Portfolio with Bitcoin: ETF allocation and returns page.