Disliked{quote} An alternative is to risk a percentage of the square root of your money. The reason is that the square root increases faster at the beginning. It keeps increasing forever but less and less. The less money you have the more the percentage will be. The more you accumulate the more you risk in absolute value but the less you risk in percentage. During a DD you give back less in % since your risk was less in %. This way you preserve the accumulated profits. Corollary: It is easier for rich people to keep their money.Ignored
Given that SQRT(X) = X^0.5, we could use values other than 0.5 to fine tune this further.
1