I have a doubt about Capital required, in the manual it states in the definition of the Capital variable:

Quote:

Capital
Initial invested capital in units of the account currency (default = 0 = no initial capital). This has no effect on trading, but on calculating the strategy performance in the simulation. Set this to the initial capital when the strategy reinvests profits; make sure that it exceeds the required capital for avoiding negative equity on the account. Zorro then calculates CAGR instead of AR and determines performance parameters from the invested capital instead of the required capital.


I have trouble understanding what it is underlined. For instance, I have a portfolio trained with WFO and I test without reinvestment and I get that the Capital required is 342$ , here are all the stats:
Click to reveal..
Code:
BackTest TradePortofolio1 EUR/USD

Simulated account   AssetsFix.dta 
Bar period          1 hour
Test period         01.05.2009-31.12.2014
Lookback time       2000 bars (17 weeks)
Monte Carlo cycles  200
Assumed slippage    10.0 sec
Spread              0.3 pips (roll -0.12/0.05)
Commission          0.60
Contracts per lot   1000.0

Gross win/loss      5854$ / -3712$ (+24596p)
Average profit      378$/year, 32$/month, 1.45$/day
Max drawdown        -259$ 12% (MAE -423$ 20%)
Total down time     74% (TAE 84%)
Max down time       40 weeks from Jan 2013
Max open margin     154$
Max open risk       475$
Trade volume        938088$ (165522$/year)
Transaction costs   -21$ spr, -3.30$ slp, -28$ rol, -48$ com
Capital required    342$

Number of trades    801 (142/year, 3/week, 1/day)
Percent winning     61%
Max win/loss        89$ / -48$
Avg trade profit    2.67$ 30.7p (+136.6p / -137.9p)
Avg trade slippage  -0.00$ -0.0p (+0.4p / -0.7p)
Avg trade bars      145 (+163 / -115)
Max trade bars      1874 (16 weeks)
Time in market      338%
Max open trades     16
Max loss streak     8 (uncorrelated 7)

Annual return       110%
Profit factor       1.58 (PRR 1.43)
Sharpe ratio        1.09
Kelly criterion     1.07
R2 coefficient      0.747
Ulcer index         7.1%
Prediction error    23%
Cycle performance   1.61 1.58 1.49 1.64 1.56 

Confidence level     AR   DDMax  Capital

 10%                137%   168$  276$
 20%                133%   180$  285$
 30%                129%   190$  293$
 40%                126%   200$  300$
 50%                121%   218$  313$
 60%                117%   234$  324$
 70%                112%   254$  339$
 80%                104%   289$  365$
 90%                 97%   326$  391$
 95%                 91%   362$  418$
100%                 73%   502$  519$



So, ok, I set Capital to 1000 which is more than 342 and I train factors and test with reinvestment and I get that the capital required is 4119, here are the details
Click to reveal..

Code:
BackTest TradePortofolio1 EUR/USD

Simulated account   AssetsFix.dta 
Bar period          1 hour
Test period         01.05.2009-31.12.2014
Lookback time       2000 bars (17 weeks)
Monte Carlo cycles  200
Assumed slippage    10.0 sec
Spread              0.3 pips (roll -0.12/0.05)
Commission          0.60
Contracts per lot   1000.0
Capital invested    1000$

Gross win/loss      166247$ / -116792$ (+24596p)
Average profit      8726$/year, 727$/month, 34$/day
Max drawdown        -4986$ 10% (MAE -9231$ 19%)
Total down time     67% (TAE 95%)
Max down time       25 weeks from Jul 2012
Max open margin     3934$
Max open risk       6831$
Trade volume        36525302$ (6444733$/year)
Transaction costs   -822$ spr, -165$ slp, -675$ rol, -1886$ com
Capital required    4119$

Number of trades    801 (142/year, 3/week, 1/day)
Percent winning     61%
Max win/loss        4708$ / -1474$
Avg trade profit    62$ 30.7p (+168.1p / -188.0p)
Avg trade slippage  -0.21$ -0.1p (+0.6p / -1.2p)
Avg trade bars      145 (+163 / -115)
Max trade bars      1874 (16 weeks)
Time in market      338%
Max open trades     16
Max loss streak     8 (uncorrelated 7)

Annual growth rate  100%
Profit factor       1.42 (PRR 1.29)
Sharpe ratio        1.21
Kelly criterion     0.17
R2 coefficient      0.918
Ulcer index         5.9%
Prediction error    23%
Cycle performance   1.48 1.39 1.29 1.52 1.42 

Confidence level     AR   DDMax  Capital

 10%                164%  1912$  5325$
 20%                159%  2131$  5484$
 30%                157%  2225$  5552$
 40%                153%  2436$  5707$
 50%                150%  2569$  5803$
 60%                148%  2720$  5913$
 70%                144%  2900$  6044$
 80%                141%  3101$  6190$
 90%                135%  3451$  6445$
 95%                130%  3815$  6710$
100%                113%  5253$  7756$



and then if I set Capital to 5000 and test, the capital required increases and so on...

So what is the relationship between Capital and Capital required? In this example, do I need 1000 or 4119 to start running the strategy? I mean, if I try to make sure that the Capital variable is more than the Capital required from the performance report, then when I test it is not enough, how come? Thanks for your help!