Traditional balanced portfolio would have you weight your investments depending on your risk tolerance. You could, let's say, have 50% HBD and 50% at risk. This way, when the value of the risky component decreases, the loss is a small part of your overall holdings. Then, you would invest more to bring your risky part up to 50% again, to rebalance. If you have a great year with risky investments to where it outgrew your HBD savings, you would buy more HBD to rebalance.
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Makes sense. I never even thought of it like this. I'm going to sit down and crunch some numbers now
Research ‘modern portfolio theory’. Instead of bonds, think HBD. Instead of stocks, think cryptos.