Hi all. Looking to expand my understanding...
The manual contains a description of the Square Root Rule for withdrawing and/or reinvesting:
http://zorro-trader.com/manual/en/kelly.htm.Once before in the Forum the question of adding additional funds to one's account came up, and the response was to simply treat this as a negative Withdrawal (W in the manual's formulas). (Unfortunately, can't now seem to find that thread/post...
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The question now in my mind is whether or not that's correct. Treating new investment funds as a negative Withdrawal has the effect of immediately subjecting them to the Square Root Rule, so that the mere action of depositing new funds makes a portion unavailable for withdrawal, which doesn't make sense to me.
For example, if I'd instead opened a new account with those new funds, wouldn't they have their own life and their own Square Root Rule progression?
So, bottom line: If new funds are added, whether to the same or a different account, doesn't each investment have its own independent timeline, Square Root Rule calculations, etc.?
Thanks.