Your thoughts on money management and 'Trader discretion'?

‘Not a lot going on with my charts at the moment, I have a couple of trades running and don't want to add more right now so I thought I’d chuck this thought in and invite your comments, I've been thinking about it for a little while now.

I’ve been trading for a few years and things are looking pretty decent.
I trade mostly Support and Resistance with Price Action in well trending conditions,

My records seem to show that since I started to relax a bit with my money management (don’t flame me out just yet ,,,,,) my trading has improved.

What I mean is that now I reckon to Average my risk at about 2.5% over a number of trades instead of fixing it too rigidly per trade, I find this makes me more comfortable with my trading. I set my stops and take-profits where they look sensible on the chart rather than strictly according to any formula.
Sometimes I will stack a running trade with more positions and sometimes I reduce the trade – all according to what the market looks like at the time.
If a trade starts to behave in a way I don’t like I may kill it immediately.
I never increase my stop-loss values though, that is my one-and-only carved-in-stone rule – a bad lesson well learned in the early days.

It all comes down to what you might call ‘Trader discretion’

I am interested in how other traders view their risk management, we can read all sorts of stuff about how to do money management – mostly very prescriptive, but how do you actually manage your risk?

The farther away you get from Wall Street position trading techniques, the more profitable you will be. Think about it. Most people trade the way Wall Street tells them, and most people lose. Conspiracy?

When it comes to risk, I try to set a per entry %r of my capital that allows me to sustain the inevitable losing streak, currently between 1-2% per entry and 0.5-1% per pyramid position.

In the past, when an entry proved fruitful, I recall thinking to myself, "if I only risked a bit more, my profit would be higher in real terms" but when analysing trading performance across many entries, it becomes obvious that increasing risk wouldn't be sensible when experiencing 4/5/6 losses in a row. Patience is the key for me, but keeping it is another matter.