Portfolio Tool · Stage 2

Tax-Aware Capital Deployment Engine

When you have a large cash position — from tax-loss harvesting proceeds, RSU vest sales, a property exit, or an inheritance — this rules-based engine tells you how to deploy it into the market systematically, removing emotion from the timing decision.

The framework uses market drawdown depth and the VIX fear index as deployment signals. The deeper the drawdown and the higher the fear, the larger the tranche to deploy. This is not market timing — it is a systematic process for putting capital to work.

After-tax context: This tool is especially relevant after a tax-loss harvest (you have cash from selling a losing position and need to redeploy), after RSU vesting proceeds hit your account, or after a 1031 exchange closes and you have cash from equity extraction.

Educational tool based on rules-based deployment frameworks. Not financial advice. VIX and drawdowns are lagging/coincident indicators — not predictive signals.

Market Conditions

Total Cash on Sidelines ($)

Cash you specifically set aside to buy market dips.

Current Target Index Drawdown (%)

Negative percentage from All-Time Highs (e.g. -14).

Current VIX Level

How the engine works:

Drawdown Tranches: We break deployment into 5 tranches.

-8%: DCA Boost (Deploy 10%)
-10%: Primary Alert (Deploy 20%)
-12%: Tier 1 Buy (Deploy 30%)
-18%: Tier 2 Buy (Deploy 60%)
-25%: Tier 3 Buy (Deploy 100%)

VIX Multiplier: If VIX > 30 (Extreme Fear), the engine recommends a 1.2x multiplier to capital deployment size, as fear spikes often mark local bottoms.

Recommended Action

Hold Cash

Market is in normal operating parameters.

Signal Diagnostics

VIX Status —

Drawdown Tranche Reached —

Baseline Target Deployment —

VIX Fear Multiplier —

Adjusted Total to Deploy Today —