I guess profit locking is the same as compounding of profits. The only problem is it is very tempting to place an orders even if it is unnecessary if we have still unwithdrawn profits. It could be the reason of being greedy and aggressive.
I haven't heard that kind of strategy. I am more than 5 years on this investment but never heard that kind of thing. I guess, that's a new strategy to compound profits and earn more.
The broker will lock your account forcefully in case you have insufficient trading balance to support your positons. This rule has clearly written on the agreement and it cannot be altered. You should read the rules thoroughly.