Ok, probably I am not able to write it in proper english, but the square root protect you from a Margin call maximizing profit, due to an increased probability of severe drawdown in a PROFITABLE TS. It does not protect you from a drawdown caused because your TS expire.

My perception is that you can not reconcile the 2 aspect because are 2 different things.
Just think at a TS that make 1000 trades in 5 years and no profit and no loss: even, flat . The probability of severe drawdown increases for sure, but you have the same capital, you can not apply the square root, because you have no capital to reinvest. The square root apply only if your TS is profitable and you want a proper money management.
Hope this helps. I do not think I can not tell you more on this matter
Ciao