What is the common wisdom on increasing the number of traded contracts as an account grows? Should it be kept the same (linear growth) or should it be increased (exponential growth) to keep the leverage the same?
Since I usually count average daily gains per contract, it wouldn’t change either way (thus a very good stat for comparison), but I wonder what most people here prefer?
Most C2 statistics (annualized return, Sharpe, all advanced stats) assume compounding (exponential growth). So for a fair representation in the stats, that is what you should do.
Subscribers may have other preferences though. Of course only the actual subscribers can tell you that. For example, if someone wants to trade a portfolio with 50% Spyder and 50% system X then it might be more convenient for him or her if both systems have a fixed number of contracts. Otherwise the balance will change when the systems have different return rates.
