I did some thinking about this idea on my blog - https://www.moderndescartes.com/essays/homeostasis_volatility/ https://www.moderndescartes.com/essays/homeosta

I did some thinking about this idea on my blog - https://www.moderndescartes.com/essays/homeostasis_volatility/ https://www.moderndescartes.com/essays/homeostasis_volatilit... the short: think of it like the Kelly Criterion. There's an optimal level of risk to take here, which you can update based on real world experiences.