The concept of critical inversion point is germane to Ethtrader. High risk activities result in increased rewards -- to a point, -- at which the outcome becomes catastrophic. A good example is driving a car. Driving faster and taking more risks results in a faster trip, up until the point you lose control and hit a tree. Dropping more acid will get you higher, up until the point you believe you can fly and jump out of a window. Riding a bubble (?) higher makes your net-worth increase, up until the point the market runs out of buyers.

In speculation, which is a high risk activity, it is possible to de-risk before you hit a critical inversion point. That doesn't mean you have to liquidate your entire position, but understand that critical inversion points happen and hedge accordingly. The goal is to get out as close to the critical inversion point as possible without going over. Kind of like the Price-is Right that way.

Critical inversion point is a useful concept that people can use to help them think about their risk profile. Have a nice day and don't forget to get paid.

Edit: Updated graph