Hi jcl. I think there's a misunderstanding. First, I'm looking at it the other way around. The concept is reducing the Capital, which I understand requires a consequent reduction in Margin/Risk.

Second, yes, I understand that the reduced Capital needs to be used in all following Square Root Rule calculations, not the original Capital.

My question comes Third: In computing the Strategy's Balance, do I add back in all the withdrawals that have been taken unchanged, or do I pro-rate them according to the current vs. original Capital, since part of those withdrawals relates to Capital no longer present? In terms of the numbers above, in the last 2 lines, To date w/d's column, should the entry be $2,250 or $1,575?

Thanks.