The idea is similar to adding to a winning trade in a single position (as discussed in point 2 above), but in this case, we are doubling and thus compounding our risk per trade across multiple trades. Before I discuss this concept, let me clarify that this is not martingale strategy whereby a trader doubles up on losses, it is in fact, reverse martingale, where a trader uses profits from one trade and re-invests them in the next trade, essentially doubling the position size on the subsequent trade. To demonstrate the maths in this concept, we will place three example trades, all with a risk reward profit objective of 2r, however, the risk will be increased on each trade as the streak plays out, as explained below…