> So the ideal trading strategy is to choose some betting amount, say $1000, and just put it in at the start of the day. Then the next day, just reset your posi

> So the ideal trading strategy is to choose some betting amount, say $1000, and just put it in at the start of the day. Then the next day, just reset your position size to $1000, either taking your $1000 in profit or kicking in another $500 to cover losses. You will quickly become a trillionaire. No, you will quickly become a thousandaire, because your strategy is very very far from optimal. You will gain an expected $250 per day, your earnings will not compound at all, and you will wonder why you are not ultra-rich at the end of the year. Of course, this is better than getting all your money every day, which, in your example, will net you nothing on expectation: the expected change of the log of your assets every day is exactly zero. If you actually use the Kelly criterion, you will indeed become very wealthy very quickly.