If we have live Z-system, and we want to adjust the capital to reinvest (following the square root rule,) does the CBI become invalid?

I suppose since the backtest will reflect the trades based on the initial unadjusted capital, we will have to generate a new *.dbl. Can this be updated without stopping a live zorro session?

The CBI will not become invalid because capital adjustment is automatically considered. You only must make sure to run the the backtest with the same capital setting as the initial capital setting of the trading session.

Thanks for this @jcl!