crash

Risk Mangement for me includes two competing requirements, GROWTH and CAPITAL PRESERVATION. Aside from backing only (more)winners (or less losers) GROWTH can only be achieved by increasing bet size (increased RISK). The Kelly criterion is proven to optimise GROWTH but, as others have pointed out, only at unacceptable levels of exposure to CAPITAL. So, how to balance GROWTH vs CAPITAL PRESERVATION???

I think you mentioned representing the ups and downs of equity within a graph. The plan outline above is specifically designed to smooth out those bumps and troughs, and furthermore, is in sympathy with the punters psychologic health (i.e. sets short term goals, take rewards).

I thought it un-necessary to spell this out in my original post.