Most efficient way of extracting profits while compounding growth?

Hi! I’m trying to figure out the best way to automate the withdrawal of profits on some regularity without destroying my strategy’s profitability.

My strategy reinvests profits, compounding growth.

I attempted to model taking half of the profits from each (profitable) trade, however that decimated the overall growth to like 10% of what it was… I suspect this is because the losses are still the same, so the strategy can’t win enough to keep growing / offset the losses.

If anyone has a model for withdrawals that is friendlier on the account growth I’d love to hear it. I’m guessing lower percentages of profit taking, and maybe less frequently?

Any thoughts, suggestions or experience in this would be greatly appreciated! Ideally this would be baked into my algo.

Thanks much! :slight_smile:

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If you’re relying on withdrawing account profits to supplement your lifestyle, and help pay your expenses, that’s not feasible. Plus, you won’t be in profit all the time. A run of losses would put paid to that.

Ideally, if your income exceeds your expenses, you can add to your account when in profit, and leave it to compound. This is what I’m doing by keeping my expenses lean each month, and depositing the surplus into my FX account…

I will just focus on the growth as it’s more important long-term that you build your account