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Should I lower contract size for a wider stop loss?
The way you should look at this is if you ALREADY have an EDGE is to deifine your "R" (Risk) for the trade by taking your entry minus your stoploss in ticks-size-dollars divided by a percentage of you account.
(I would never suggest going above %1 risk on account but with $2000 I might go as high as %2 if I was really confident)
Example. You have a $2000 account. Your stoploss is 8 ticks away. Each tick is $1.25 (micro ES in this example).
So your "R" (risk unit) on this trade is $40 and 8 ticks.
($2000 X %2 = $40) ÷ (8 ticks X $1.25 = $10) = 4 contracts.
Now you take that 4 contract loss at 8 ticks for a $40 loss or you take profits at one "R" at $40 or two "R" lets say at $80.
Your objective is to make sure you are always looking to take more than one "R" in profits but NEVER take more than a one "R" loss.
Just insert the risk management framework into your already profitable system.
If your system isn't profitable to begin with NO amount of money management will help. It might help slow the bleeding but the eventuality is the same.
