>trade a minimum position, just enough so a loss would mean less than 2% of my capital
>get enough profits so I can increase my position size without risking more than 2%
>now my position will increase twice as faster
>then three times faster
>rinse and repeat
How could this go wrong?
rather crude approach to risk management... that aside - how could this go wrong? Very easily if you've got no edge....
It doesn't matter how you structure your bets if there is no edge in the first place... you're basically playing roulette and playing roulette risking 2% of your stack each time can just as easily see you go bust
get a quantifiable edge, then forget about arbitrary wagers - look at half Kelly instead