Hi all

I have a question regarding the adjustment of the capital slider.
Please see below math/thoughts.

At the start, the Capital slider setting is at 9'000.
The Starting Capital shall be 14'000.
Let's look at the following scenario:

The system makes a profit of 1'000. Consequently, I have made 7.14% on my balance, which means (according to the square rule), that I can increase the capital slider by a factor of 1.0351.
That would mean, that my new capital slider position is now 9'000 x 1.0351 = 9'316.

So far so good?

Now, the system is trading with this second capital slider setting at 9'316 and...let's assume, that after some time, the system has made a profit of 1'100.
As a result, the account balance is now at 16'100 and the total profit is 2'100, which is 15%. The square root says, that I can increase the capital slider by a factor of 1.0724 now.

Question: Do I go ahead and multiply the initial capital slider setting of 9'000 by that factor of 1.0724, OR, do I take the second capital slider setting of 9'316 and multiply it by 1.0724?

Many thanks for your help in clarifying this!



On a side note: What is the recommended "pace" at which the capital slider should be increased? In other words, how would it look like if it was automated?
Does it make sense to increase it (of course by following the square root rule) at every new high, that the balance makes? Or is there a specific amount of time one should wait so that it can be safely increased?


Thank you all!

Last edited by Smallz; 03/29/19 18:36.