To further illustrate what I mean here are the results for a strategy I have written:

Originally Posted By: "Without reinvesting"

if(OptimalFLong > 0 and OptimalFShort > 0)
Margin = 100*(OptimalFLong+OptimalFShort);

Capital Required 544
Profit 2408
Annual return 195%
Profit factor 1.29 (PRR 1.18)
Sharpe ratio 1.60
Kelly criterion 1.31
OptimalF .062
Ulcer index 6%
Prediction error 16%


Originally Posted By: "Code 1 from 1st post using WinTotal-LossTotal instead of Equity"

Capital required 11311
Profit 6182
Annual return 24%
Profit factor 1.09 (PRR 1.00)
Sharpe ratio 0.47
Kelly criterion 0.89
OptimalF .007
Ulcer index 19%
Prediction error 16%


Originally Posted By: "Code 2 from 1st post"

Capital required 205
Profit 772
Annual return 166%
Profit factor 1.26 (PRR 1.15)
Sharpe ratio 1.55
Kelly criterion 1.44
OptimalF .072
Ulcer index 7%
Prediction error 16%


Originally Posted By: "Code 3 from 1st post"

Capital required 2751
Profit 7606
Annual return 122%
Profit factor 1.21 (PRR 1.11)
Sharpe ratio 1.22
Kelly criterion 1.22
OptimalF .027
Ulcer index 9%
Prediction error 16%


Hpoefully this should show clearer... because the way I read the manual and lessons regarding reinvesting profits was the whole point was to make more money from the same amount of starting capital. And in each of these examples on the same script the starting capital & profits changed dramatically.