Compounding — the trader's true edge
A 2% monthly return doesn't mean 24% a year — it means 26.8%. A 3% weekly return compounded for 52 weeks is 363%. The traders who win long-term don't shoot for moonshots — they protect drawdown and let compounding do the work.
The drawdown trap
Lose 50% on a trade and you need a 100% gain to recover. Lose 30% and you need 43%. This is why position sizing matters more than win rate — drawdown destroys compounding asymmetrically.
Track your real compounding curve
QbarTrade tracks your equity curve and drawdown from every journaled trade — so you can see whether you're compounding for real, or just running into the math.