Hi eddieb, this is not a trading system. This is just a money management strategy. In order for this to be used effectively, it is to be used in conjunction with an already winning trading system. As it has already been said many times over, no money management can turn a losing trading system into a profitable one. That is why many trade who trade the martingale way will eventually lose.
As for how you can utilize this system, it is really based on your trading system. For example based on your trade log, you find that your system has many 3 in a row wins that has a risk-t-reward ratio of 1:2, you can utilize this method to maximize your wins. If you win 1:2 three times in a row and you compound your wins, you will win a total of 26R compared to just the 6R wins you would have made if you hadn't compounded them.
Now of course, it is not possible to determine exactly the win and loss distribution as it is totally random. However its just something for your to experiment with. And also it is not meant for you to blindly compound forever until you lose. That totally defeats the purpose. However by employing that method can probably in theory make lots of profits if you think of how the Martingalers trade.
The reason why many traders lose their shirt when they trade the Martingale Grid Systems is because their only form of money management is to keep increasing their size of their risk on each trade until their capital gets wiped out from a super long losing streak. This method in theory is the opposite of what Martingalers lose. Basically the capital they lose will be transferred to you, less commissions of course. But that is only if you're willing to go through a long period of drawdown