If I'm treating that capital as dead money, I wouldn't pull out any of the amount as long as I'm fine not doing it and I'm not in need of any amount from that investment and diversification. But if I'm very conservative and there's a need for me to take back my money at least and enjoy the profits that I've made, I'll take the cash and leave the remaining amount just as your example. It will depend to the situation that I'm currently facing. If I'm in dire need, I'll take profit and leave it but if I'll follow my behavior and I'll apply what I've learned in my experience, I'll keep it as is.
Yes one plan was to let the initial investment (100 in this case) do the shift and create 100% of itself, then pull the initial investment out and put that to work somewhere else (another coin) and repeat.... Would that sound like a logical step or is it doomed?
That's logical. You know we as traders and investors, we have strategies that are going to work only for ourselves. I might have a strategy that would work for myself but it won't work for others. So that's logical depending on the strategy that will work for you.
Whichever is working for you and you think that you have studied it and you have a plan on how to execute it, that's what's the important thing that you should consider.