How do you assess compounding?

[lbranjord]

Here is a question I am faced with. With reasonable leverage and consistently increasing capital, at what point do you increase the lot size for your trades?

So far I have been adjusting this monthly. At the beginning of each month I increase my lot size to match the new size of my account. And of course, compounding then takes effect.

What if I were to assess compounding on a daily or weekly status? If I increase/decrease my lot size daily according to the size of my account, wouldn't that make compounding more effective? I would do so accurately and calculate this percentage.

Here's a synopsis of my system as it pertains to this thread:
Leverage is 1:20. I trade as many lots as allowed with this. I open one trade a day, maximum gain or loss is limited to 50 pips, usually is less. 70% of trades are correct. I always risk the same amount of pips as I aim for. (Stop loss distance dictates my target distance.)

Thanks in advance for your comments...

 

[Albert Carey]

Here is a question I am faced with. With reasonable leverage and consistently increasing capital, at what point do you increase the lot size for your trades?

I divide the closed equity by position size. Let that equal to D. Then, when the closed position equity increases by D, I add another contract.

 

[lbranjord]

Great, thank you Albert. Here is a slighter tougher sample scenario:

On 20:1 leverage, with 10,000.00 USD in an acct, I'd like to know how to calculate the maximum number of lots one could trade. Assume a .9 oanda eurusd spread.

This will greatly help my Money Management. I know it's ridiculous that I have been trading forex live for 2 years and have not figured out the basic math. But I'm making the effort now. I really appreciate the tutoring on these boards that helped get me this far. I'll pay it forward.