Momentum Trading, page-7

Thats a strange strategy. Sure in a bull market it might work

2% stop will never work. Will avg out +5 % at best due to increments in prices, if youre in sub 50c stocks

But over time

For every 10 trades you will at best have 6 winners and 4 loosers.

4 of your winners will balance out 4 of your loosers.

Your 2 other winners are your profit.

And averaged out over 10 trades you get a return per trade then there's brokerage.

you won't reinvent the wheel, many smart people have travelled before you. Letting your 2 winners run is THE ONLY WAY