What do you think of adjusting the amount risked on a trade depending on the “quality” of the setup? It is very subjective after all so how to tell in advance whether a trade is worth betting more?
Is the alternative approach of adjusting the risk based on current PnL better? As a day trader you are thinking in terms of profit for a particular day so it would make sense to risk more when you have a “cushion” of PnL built up in the day earlier that will protect you against hitting your daily…