What are some trading strategies that have high probability of small profits and low probability of catastrophic loss? I believe there is an academic term to describe a trading system that shows small consistent profits, but with the risk of a complete loss lurking around the corner. The typical equity curve of such a strategy resembles a straight upward-sloping line (i.e. small but consistent profits), with a cliff at the end that represents a huge loss.
What is the proper term for such a trading system? Could you give some concrete examples (i.e. hypothetical portfolio constructions) that implement such a risky trading system?