Disliked{quote} But to use this strategy correctly one better be a good short term trader otherwise you're a) going to suffer far too many losses as you initially trade, and b) not be able to stack correctly, ie very aggressively. This whole thread is basically a waste of time unless one is a good short term operator in the market. If you're not then the big wins you'll get won't be enough to offset the many many short term losses you'll generate. Conversly, it you're a competent short term trader this thread has the chance to change your life. Sadly for...Ignored
the problem with your theory is that even if you are good at short term trading you will still be at a disadvantage for a few reasons.
1. The mathematics is quite clear that profits with small RR will be smaller (significantly) .Smaller profits, less room for error - there will be times the market is less favourable to your approach (unless you're super lucky), if you have banked massive profits already it is far less of an issue psychologically.
2. Increasing risk is risky. Increasing profit for consistent risk should be our aim.
3. As a position grows you actually need to trade less and can profit more - reducing your risk.
Now i'm not saying for 1 minute that intra-day trading can not be hugely profitable, but - the majority of retail traders trade intraday, the majority lose money, so for some a different approach may well be the answer.
Good luck mate....
p.s you're right about being able to select good locations to enter, that is essentially the same regardless of the money management, so yeah you kind of need to be good at both.
tradewith60