The number of trades we do is inversely proportional to the TF we tend to trade. The number of trading errors we do is directly proportional to the number of trades we do. So if we want to reduce the number to trading errors, reduce the number of trades. If we want to reduce the number of trades trade on a higher TF. We simply have to reduce the number of decisions we have to make to be profitable. Of course all within the usual suspects of trading system, money mgt and discipline.
Lesser amount of trades normally doesnt translate to good profit. The amount of money needed to be put at risk to know if a trade will work is proportional to the tf traded. Higher tf normally means wider stoploss. And lack of movement is going to kill any system. Issue is damage control. A time tested ema crossover on eod like sh's 315 is whipped 5 times this month.
Every time i place a trade with 6 point point sl... thats the money i am willing to risk to know if the trade will work. 5 such trades fail, I loose 30 points plus brokerage. Same trade with 30 points sl can give it room to move in my direction but all i need is 1 such failed trade for a 30 point damage.
Every thing depends on how i manage my exits. with smaller sl, i have far more number of scratch trades and small loosers. But a small number of big winners is needed to offset all that.
With a wider sl...i cannot afford to be wrong too many times....!