Protocol

The Compounding Capitalist

Automate contributions. Control risk. Stay in the game long enough for compounding to work.

See the systems
The Compounding Capitalist

Does this sound familiar?

  • You contribute inconsistently and call it ‘timing’
  • You change strategies after drawdowns
  • You check prices daily but review your rules rarely
  • Your portfolio is a pile of ideas, not an architecture
  • Fees, taxes, and turnover leak compounding
Old Way
  • Chase excitement and hot tips
  • Trade to feel in control
  • Take unmanaged risk
  • Optimize for short-term performance
New Way
  • Automate boring contributions
  • Operate by written rules
  • Control downside and liquidity risk
  • Optimize for decades, not weeks
Myth

Common Myth

The best investors are the ones who predict what happens next.

Mechanism

The 5 Capital Systems

Click a system to explore its habits

Contribution Engine

Contribution Engine

Turn investing into a default: automated cashflow, escalation, and zero-drift routines.

Portfolio Architecture

Portfolio Architecture

A simple, diversified allocation with clear rules for what belongs in the core.

Risk Control

Risk Control

Liquidity buffers, position sizing, and pre-written responses to drawdowns.

Behavioral Discipline

Behavioral Discipline

Remove triggers. Contain checking. Reduce impulse trades and strategy drift.

Review & Tax Efficiency

Review & Tax Efficiency

Rebalance by rule, harvest when appropriate, and protect after-tax compounding.

Progression

Habit Tiers

Tier 1

Foundation

Set defaults: automate contributions, define allocation, remove triggers, and establish a cash buffer.

Tier 2

Growth

Install the operating cadence: rebalance rules, diversification structure, and scheduled check-ins.

Tier 3

Mastery

Write the policy, stress-test the plan, optimize asset location, and train drawdown behavior.

Tier 4Peak

Titan

Prove it under pressure: hold through drops, rebalance into crashes, and execute year-end tax actions.

The Protocol

  • Month start: fund the engine

    2–10m

    Verify contributions are automated and scheduled. Increase savings rate if possible.

  • Weekly: one window only

    15m

    Check portfolio and contributions during a single scheduled window. No other monitoring.

  • Quarterly: rebalance by rule

    30–45m

    Rebalance only when allocation drifts outside bands. Document decisions.

  • Drawdown: execute the pre-written response

    20–30m

    Use the panic checklist and drawdown drill. No improvisation.

  • Year-end: tax and cleanup

    1–2h

    Harvest losses when appropriate, reconcile realized gains, and prep next year’s plan.

Getting Started

Step01

Week 1: install the defaults

Automate contributions, set a cash buffer floor, define allocation, and remove price triggers.

Step02

Week 2: build the architecture

Implement a diversified structure and rebalance bands. Separate speculation from core.

Step03

Week 3: lock the risk rules

Write position sizing and drawdown triggers. Stress-test whether you can hold the plan.

Step04

Week 4+: practice staying in the game

Draft the IPS, run drawdown drills, and move tax efficiency from theory to a schedule.

Frequently Asked Questions

Compounding Capitalist

Protocol Playbooks

Curated sequences of habits designed to be practiced together. Click a playbook to see its cards in the deck below.

Zero-Thought Contribution Engine
6 cards

Zero-Thought Contribution Engine

Make investing happen without motivation. Automate cash flow and raise the input stream.

Automate Monthly Contributions
Lock a Payday Sweep Rule
Raise Your Savings Rate by 1%

+3 more habits

Rules-Based Portfolio Architecture
7 cards

Rules-Based Portfolio Architecture

Build a diversified core and a mechanical rebalance rule. No improvisation.

Choose a Default Allocation
Cut Fees in One Place
Build a Three-Fund Portfolio

+4 more habits

Crash-Resistant Compounding Protocol
8 cards

Crash-Resistant Compounding Protocol

A pre-written response for drawdowns so you don’t sell at the bottom.

Write Your Time Horizon
Set a Cash Buffer Floor
Define a Max Drawdown Trigger

+5 more habits

Anti-Impulse Trade Firewall
8 cards

Anti-Impulse Trade Firewall

Remove triggers and contain checking so volatility doesn’t become action.

Delete Price Alerts
Schedule One Check-In Window
Write One Rule for Impulse Buys

+5 more habits

After-Tax Compounding Maintenance
6 cards

After-Tax Compounding Maintenance

Improve what you keep: tax-aware settings, harvesting cadence, and year-end execution.

Turn On Dividend Reinvestment
Name Your Tax Lot Method
Scan for Tax-Loss Harvest Candidates

+3 more habits

Quests

Challenges to accelerate your transformation. Click a quest to see its target cards.

Initiation

The Architect's Foundation

Establish your baseline system by automating contributions, defining your time horizon, and eliminating reactive price alerts.

"The speculator reacts to the market. The capitalist builds a machine that ignores it. Let's lay the first stones."

Foundation tier streak for 7 days
6 cards
View Quest Cards
System Mastery

The Risk Control Protocol

Harden your portfolio against catastrophe by setting drawdown triggers, stress-testing allocations, and mastering the rebalance-into-crash maneuver.

"In this game, survival is the only strategy that matters. If you cannot be forced out, you cannot lose."

Complete Risk Control system
8 cards
View Quest Cards
Titan Trial

The Great Silence

Execute a 90-day market blackout. Delete all apps and block finance sites to prove your system functions without surveillance.

"True compounding happens in the dark. If your protocol requires your constant attention, it is not a protocol—it is a job."

Titan tier streak for 90 days
1 cards
View Quest Cards

The Full Deck

40 habits across 5 core systems

Systems:
Playbooks:
Automate Monthly Contributionsfoundation

Automate Monthly Contributions

Automatic transfer to brokerage on payday; decision fatigue removed; timing games eliminated.
⏱ 2m⚡ tactical
Contribution Engine
Raise Your Savings Rate by 1%foundation

Raise Your Savings Rate by 1%

One expense cut or capped; amount redirected into contributions; no life overhaul required.
⏱ 90s⚡ mental
Contribution Engine
Lock a Payday Sweep Rulefoundation

Lock a Payday Sweep Rule

Fixed checking balance maintained; excess swept to savings/investing; idle cash eliminated.
⏱ 2m⚡ tactical
Contribution Engine
Choose a Default Allocationfoundation

Choose a Default Allocation

Target split written (e.g., stocks/bonds); used as only default; no improvising under stress.
⏱ 2m⚡ mental
Portfolio Architecture
Write Your Time Horizonfoundation

Write Your Time Horizon

Date written: 'I will not need this capital until: ____'; risk aligned to timeline.
⏱ 60s⚡ mental
Portfolio Architecture
Cut Fees in One Placefoundation

Cut Fees in One Place

Expense ratios checked; high-fee funds replaced with low-cost index equivalents.
⏱ 2m⚡ tactical
Portfolio Architecture
Set a Cash Buffer Floorfoundation

Set a Cash Buffer Floor

Cash months-of-expenses floor set; kept outside portfolio; forced selling prevented.
⏱ 2m⚡ tactical
Risk Control
Define a Max Drawdown Triggerfoundation

Define a Max Drawdown Trigger

Pre-written response: 'If portfolio down X%, I will do Y'; panic doesn't write the plan.
⏱ 90s⚡ mental
Risk Control
Separate Speculation from Corefoundation

Separate Speculation from Core

Separate 'sandbox' bucket with fixed max percentage; risky bets capped and contained.
⏱ 2m⚡ tactical
Risk Control
Delete Price Alertsfoundation

Delete Price Alerts

App notifications and price alerts disabled for all long-term holdings; triggers removed.
⏱ 60s⚡ tactical
Behavioral Discipline
Schedule One Check-In Windowfoundation

Schedule One Check-In Window

Weekly 15-minute slot picked; only check during that window; rest of week stays clean.
⏱ 90s⚡ tactical
Behavioral Discipline
Write One Rule for Impulse Buysfoundation

Write One Rule for Impulse Buys

Rule written: 'Wait 72 hours before any non-plan purchase'; friction created.
⏱ 60s⚡ mental
Behavioral Discipline
Turn On Dividend Reinvestmentfoundation

Turn On Dividend Reinvestment

DRIP enabled for long-term positions; capital compounds automatically; no idle cash drips.
⏱ 2m⚡ tactical
Review & Tax Efficiency
Name Your Tax Lot Methodfoundation

Name Your Tax Lot Method

Lots set to 'specific identification'; tax-aware selling enabled without extra work.
⏱ 2m⚡ tactical
Review & Tax Efficiency
Capture Every Trade Rationalefoundation

Capture Every Trade Rationale

Thesis, risk, exit condition, and invalidation written before any non-automated trade.
⏱ 90s⚡ mental
Review & Tax Efficiency
Set a Two-Fund DCAgrowth

Set a Two-Fund DCA

Two broad funds (stock/bond) picked; purchases automated each contribution date; no market opinions needed.
⏱ 10m⚡ tactical
Contribution Engine
Create an Emergency Fund Plangrowth

Create an Emergency Fund Plan

Months-of-expenses target defined; auto-transfer set until funded; short-term liquidity risk removed.
⏱ 15m⚡ tactical
Contribution Engine
Build a Three-Fund Portfoliogrowth

Build a Three-Fund Portfolio

Total US stock + total international stock + total bond; minimal complexity; low fees.
⏱ 15m⚡ tactical
Portfolio Architecture
Choose a Rebalance Bandgrowth

Choose a Rebalance Band

Bands picked (e.g., +/-5%); rebalance only when breached; constant tinkering prevented.
⏱ 10m⚡ mental
Portfolio Architecture
Stress-Test Your Allocationgrowth

Stress-Test Your Allocation

Worst-case drop written; decision made now: hold, rebalance, or reduce risk.
⏱ 15m⚡ mental
Risk Control
Write a Position Sizing Rulegrowth

Write a Position Sizing Rule

Hard max % for any single name set; exceptions treated as violations.
⏱ 10m⚡ mental
Risk Control
Pre-Commit to No-Sell Windowsgrowth

Pre-Commit to No-Sell Windows

Window written (e.g., 90 days) where long-term holdings will not be sold; panic-selling removed.
⏱ 10m⚡ mental
Behavioral Discipline
Run a News Fastgrowth

Run a News Fast

One news source deleted for a week; replaced with single scheduled review; noise reduced.
⏱ 15m⚡ tactical
Behavioral Discipline
Schedule a Quarterly Rebalancegrowth

Schedule a Quarterly Rebalance

Recurring calendar event set; rebalance only if bands breached; risk aligned with plan.
⏱ 10m⚡ tactical
Review & Tax Efficiency
Scan for Tax-Loss Harvest Candidatesgrowth

Scan for Tax-Loss Harvest Candidates

Positions at a loss identified; swapped into non-identical alternative; wash sale avoided.
⏱ 15m⚡ tactical
Review & Tax Efficiency
Build a Contribution Laddermastery

Build a Contribution Ladder

Step-ups set: increase auto-invest by fixed amount each month until it hurts; income growth becomes compounding growth.
⏱ 30m⚡ tactical
Contribution Engine
Increase Contributions After Raisesmastery

Increase Contributions After Raises

At least half of increase redirected into automated contributions within 24 hours; lifestyle inflation prevented.
⏱ 30m⚡ tactical
Contribution Engine
Document an Investment Policy Statementmastery

Document an Investment Policy Statement

Allocation, contributions, rebalance bands, sell rules, and speculation cap written; future stressed self can't improvise.
⏱ 45m⚡ mental
Portfolio Architecture
Implement Global Diversificationmastery

Implement Global Diversification

Broad international exposure added to allocation; maintained via rebalancing; single-country dependence reduced.
⏱ 30m⚡ tactical
Portfolio Architecture
Run a Drawdown Response Drillmastery

Run a Drawdown Response Drill

30-50% drop simulated; exact steps practiced per drawdown trigger; response built before needed.
⏱ 30m⚡ mental
Risk Control
Hedge Concentration Riskmastery

Hedge Concentration Risk

Cap set for single asset/employer equity; diversification schedule created; emotional timing avoided.
⏱ 45m⚡ tactical
Risk Control
Execute a Panic Checklistmastery

Execute a Panic Checklist

Cash buffer, time horizon, and plan checked before any crisis decision; permanent damage prevented.
⏱ 20m⚡ mental
Behavioral Discipline
Run a Decision Journal Reviewmastery

Run a Decision Journal Review

Trade rationales reviewed; impulse trades identified with reasons; learning from own history.
⏱ 30m⚡ mental
Behavioral Discipline
Optimize Asset Locationmastery

Optimize Asset Location

Tax-inefficient assets placed in tax-advantaged accounts; after-tax returns improved.
⏱ 45m⚡ tactical
Review & Tax Efficiency
Plan a Tax-Aware Withdrawal Ordermastery

Plan a Tax-Aware Withdrawal Order

Draft order written (taxable vs retirement); revisited annually; lifetime taxes reduced.
⏱ 45m⚡ mental
Review & Tax Efficiency
Go 30 Days with No Lifestyle Inflationtitan

Go 30 Days with No Lifestyle Inflation

Discretionary upgrades frozen for 30 days; delta redirected into contributions; spending pressure tested.
⏱ 30 days⚡ mental
Contribution Engine
Hold Allocation Through a 10% Droptitan

Hold Allocation Through a 10% Drop

72 hours of no action; IPS re-read; only act via rebalance bands; allocation stress-tested.
⏱ N/A⚡ mental
Portfolio Architecture
Rebalance Into a Crashtitan

Rebalance Into a Crash

Cash buffer confirmed; band-based trades only executed; then stop checking; discipline tested.
⏱ 30m⚡ mental
Risk Control
Ignore Markets for 90 Daystitan

Ignore Markets for 90 Days

Apps deleted; finance sites blocked; only quarterly review allowed; system runs without attention.
⏱ 90 days⚡ mental
Behavioral Discipline
Execute Year-End Tax Reviewtitan

Execute Year-End Tax Review

Realized gains/losses reviewed; harvest if appropriate; wash sale rules verified; December deadline met.
⏱ 2h⚡ tactical
Review & Tax Efficiency

Sources & References

External reading that informed this stack.

5 links

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