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stop loss and profit target should be fixed or variable?
if you play more than 1 contract you can do a lot of stuff with them :-) You can manage more "parts" of the trade then so there is more flexibility and each part represents actually a slightly different strategy.
At the end you will probably find out that fixed exits work best and it's not worth it to 'work' more. As Livermore 'said it was my siting what made me money not thinking'
I really don't think a trader is "working" more by having variable stops. It's smarter, especially when you fully understand the market you're trading. Would you exit or add to a trade if you had a stop at -$1,000, x%, etc. but when price went down to your stop, your reason for entry was still valid? I believe Livermore thought a lot about the market when he was out of it, which is when stops are planned as well as every other part of your strategy.
I use an "Add Amount" based on market volatility derived from the ATR indicator (Average True Range ). Usually stop will be placed at the S/R point or pivot etc +- the Add Amount. Add Amount is calculated by .33 * highest ATR for the day as it develops. This will cater for market volatility while placing stops.
