Self Capitalization

At first sight this seems very complicated.

But it is in fact as simple as it is.

BUT the difference in the result is enormous if you make the small effort to adjust the extent of your bet (bet size) a few times during the year in function of the changing capital in your broker account. Namely by also increasing (or decreasing) your bet size by +/- 10% if your total capital in your broker account has also increased/decreased +/-10% compared to the previous adjustment of your bet size. (That way your bet size will remain about the same percentage in size throughout the year)

Without that ‘self-capitalisation’ during the year, you will only do this after every full year of trading.

It’s a pity that we cannot tell ALL our members when they have to increase (decrease) their bet size by +/-10%, that’s because every member starts being a member at a different time and therefore starts trading at another time, and thus will reach the 10% increase (decrease) in capital also at another moment in time.

One tip to do that is: write down your start-up capital. And immediately note the 2 limits, being -10% and +10% compared to that starting capital. You keep an eye on your capital and after every closed trade you check whether you have reached approximately one of those 2 limits. If so, adjust the bet size, and, if not, keep the same bet size for the next trade.