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> My best guess is that ploughing ALL your profits
> back in to a bigger position (and hence increasing
> your leverage) is bad money-management
> and will lead you to have much higher odds of going
> bust than an approach where you increase your risk
> in proportion with your overall account value.
Don't forget that there's always the option of betting aggressively with
accumulated profits & conservatively from your initial capital, e.g., total
risk = 1% of initial capital + Optimal F% of profits. Granted, this will
lead to very high drawdown statistics, but at least the drawdowns will be
coming from the market's money, & the potential payoff may well be
worthwhile.
Cheers,
Cab Vinton
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