I wonder what Hershey would say to this method because for once I am certainly thinking out of the box here
High win-rate systems ALWAYS have small avg win trade amt vs. huge losing trade amt. It's like a law of physics. Systems with 40-50% win-rates usually have a 3:1 and sometimes a 4:1 avg win/avg loss trade ratio. Wonder what ratio this system is averaging ?
I think it sounds reasonable, like you said you'd only trade 10% of your funds so you wouldnt be "all in" for the possible 3 losses in a row wipe out.
What's the order type you used to test this model? Market? Stop? Limit? Etc? Etc? Also, what backtesting package did you use?