I don't quite understand what the debate is about. As some of you have pointed out, compounding is simple. If you have an account with $1,000 in it, and you set your standard order to always risk 1% of balance, while setting a take profit at 2-3% of balance, then, assuming your strategy is profitable in the first place, you will have the power of compounding working for you. Your probability of blowing up the account wouldn't change, as you'd still only be risking 1% of the account each time you trade.
I do think that at some point it would be prudent to start pulling some of the profits out, but that would just be for peace of mind, and to actually reap some of your rewards. For pure growth though, I don't see why you wouldn't want to compound as much as you could.