The purpose of this threat is pure journal about trading equity millipede, to track my trades, preparations and results
{quote} Yes, that is understood. While on the surface it looks like you are risking a constant amount at all times, you are really paying for it with your position in the trade. Adding more full sized trades has the effect of increasing your correlated risk. This method maximizes the gains from large trends but increases your portfolio heat in their absence.
If by " increases your portfolio heat in their absence" you mean huge fluctuation in unrealized profit, than yes, but the difference is that I do not consider unrealized gains as profit or loss. I tried to do specific example....see attached. Let imagine that market moves 1000 pips and than reverses 100 pips. In this case you add new position every 100 pips and move it to break even. If my optimal risk is 11 Dollars per pip than the optimal risk size woud be achieved in your case at eleventh trade, decreasing the overal profit to 1/10 of the version with constant risk of 10 Dollars per trade. Live example of EURUSD last year....
BTW how do you arrive to the conclusion about optimal starting risk when you do not know how far the market will go??
