CH, maybe this is a better example of compounding.
Say your system in a year's time will generate 25 trades that each have a gain of 3%. So the total gain for the 25 trades will be 75%. But if the gains from each precious trade is added into the investment for the next trade, by the end of the 25 trades, the account will be up 109%, not 75%.
Trade the Charts and not the Heart - Expect the trend to continue until it doesn't - Realtime is the real deal