Profit Acceleration: Pressing Your Winners
Increases position sizes during winning streaks to capitalize on periods when your edge is working.
What is Profit Acceleration?
Profit acceleration is the strategy of increasing your position sizes when you're in a winning streak. The logic is simple: if your edge is currently working well, you should capitalize on it while conditions are favorable. Just as you reduce risk during losing streaks, you can responsibly increase risk during winning periods to maximize returns.
Key Principles
Streak awareness: Track consecutive wins and winning days. Gradual increases: Scale up position size incrementally. Profit protection: Only increase size with profits, not original capital. Quick reduction: Reduce size immediately when streak ends. Maximum caps: Set limits on how large positions can grow.
Implementing Acceleration
Start with your base position size. After a defined winning streak (say, 3-5 consecutive winners), increase size by a small percentage (10-20%). Continue increasing with each additional win, up to a maximum cap (perhaps 50% above base). When you experience a loss, immediately return to base size or even below if the loss was significant.
Risk Management
The key to profit acceleration is protecting your gains. Only 'press' with profits you've made, never with your original capital. If you've made $1,000 in profits, you can afford to be more aggressive with that $1,000, but your original stake should remain protected. Think of it as playing with house money while keeping your initial bankroll safe.
Practice Risk-Free
Master these concepts with paper trading before risking real capital.
Start Paper TradingDisclaimer: This article is for educational purposes only and does not constitute financial advice. Trading involves significant risk of loss. Cryptocurrency investments are volatile and high-risk. Always do your own research before making any investment decisions.