Therefore, our question becomes do we reallocate based on that kind of investment that is way more allocated than what we had originally created.
Dump BCH holdings entirely for a considerable windfall.
Take out whatever fiat you need / want to be silly with, convert the rest to BTC. Heck. Take all the BCH-turned-fiat and reinvest into traditional holdings if you're less risk-averse.
In 2020, at the block halvening, I'm thinking of dumping $1M worth of BTC (hoping it's near $10k USD/BTC at that point), and seeing how long I can live off that, after giving Uncle Sam his 40% cut.
I think that the BCH distribution is a bit of a different question. Sure, it had the potential to increase our BTC holdings in the neighborhood of largely 8% to 15%, and sure there was a likely individualistic question about whether that windfall should be converted into BTC or fiat or some combination of the two. I personally converted it into BTC - but I think that it caused me to cash out a bit more of my BTC, so in the end, the distribution within by BTC investment remained somewhat constant (in the 92% to 94% category). Actually, if you recall, BTC prices rose about 90% after the BCH fork, but then corrected down from there, and without BCH, probably, my investment in BTC would have come down to nearly 90% with such a price rise - however, the issuance of the BCH seemed to allow me to maintain a bit higher BTC allocation - in spite of BTC's price going up so rapidly... and sure, now we are only about 50% up from that post-forkening split (from $2600-ish to $4k-ish). So how to treat the BCH distribution seems to be a slightly different question.
I think that you can have a few predetermined price points that you would like to skim off some cash from your BTC holdings, and I think that it is safer to consider those in terms of price points, rather than in terms of timeline, even though timeline does have something to do with making tentative determinations about whether you might conclude that the price has gone up too quickly and is due for another correction.... so I guess my point is to let the price dictate (somewhat) your skimming out profits rather than some specific date (although I understand that within a year, there could also be some flexibility regarding when and how exactly, you skim off those BTC profits).
If I had allocated money into BTC at 50% or some outrageous amount, then maybe I would feel a little nervous, but since BTC price appreciation brought my 10% to 15% BTC allocation to a bit more than 50%, I don't really feel any urgency to cash out. Furthermore, I think that some of my lacking of urgency has been my practice to skim out profits all the way up from $250 to $4980, and in recent times, I have been skimming out a bit more and causing a bigger storage of nuts - so some of that might be used to buy back on dips, but I am thinking that some of it will just be there for me to spend on whatever the fuck I want.
So, possibly my thinking has been evolving a little bit more on the topic, especially given our 2017 burst upwards in prices and also what seems to be ongoing bullishness that puts us HODLers into the bird's seat. So, my thinking in more recent times, has been to skim out a tiny bit more of the profits than what had been my previous practice, just to have those profits available for "me", and it seems that I still have plenty of money to buy back bitcoin on dips.. just to keep that extra on the side "me" money.
So maybe I would feel a bit more urgency to reallocate into fiat or some other investment, if I had not already been skimming out profits, and/or if I really perceived that bitcoin were in some kind of bubble - which it really does not seem to be.. Our price growth in this cycle has been quite a bit less steep in this time around with plenty of corrections along the way, which causes some ongoing thoughts that at some point we are going to experience a more steep and a more exponential cycle up.. and at that point, it could be prudent to skim off a bit extra (even though I refuse to go to zero - so if I cash out 50% of my coins, that would be pretty fucking extreme for me - especially since my so far practice has only caused me to cash out about 5% in any one short period).