Thanks. I understand what you are saying now.

You don't think the risk % per trade is important? Can you share in your scenario what the risk % per trade is?

Mike

I created below the spreadsheets below to shows the risk and what I am pitching. There are two setup. The one on top will add 1 contract for every $2000 profit per contract. So if he is current trading 5 contracts, he will need to accumulate $10k with this 5 contract before he can start trading 6 contracts. However, instead of making $10k, he loss $4 (half of 8k profit going from 4 to 5 contracts), he will reducing his trading size to 4 contracts. The profit/loss will start over when he add/reduce contract. So if he go from 5 to 4 contracts, he has to accumulate another 8k before he can allow to trade 5 contracts again.

There are 4 initial accounts: 10k, 20k, 50k and 100k. All start with 1 contract and will risk $100/contracts. As you can see below, none of then will risk 2% per trade. Assume trader never need to reduce size.

I am afraid that this all quite theoretical. There are no trades with a $ 100,- risk. You will get whipsawed all the time. You cannot add 1 contract per $ 2000,- of profits, as the risk is at least 5 times higher than acceptable. The spreadsheets only show profit columns and no loss columns.

The principle of fixed-fractional betting also has its shortcomings. Your losing bets will have a larger size than your winning bets.

For a realistic simulation you should not calculate the size of your wins, but your risk-of-ruin. I recommend studying Ralph Vince: The Mathematics of Money Management as a starting point.

Sorry for being quite frank. The principles you showed are correct, but do not catch the point.