With the compound model, each trade invests a fixed percentage of your current capital. Profits are reinvested, losses reduce the stake. This creates exponential growth in good years but also amplifies losses.

Example: at 21% compound, each trade uses 21% of available capital. Starting at $100K = $21K per trade. After a year with +18% growth, that becomes $24.8K.

The fixed model invests a fixed amount per trade regardless of capital size. This gives lower risk (lower MaxDD) but also lower returns.