Being that you are asking about stop loss of one point tells me you don't have a clue about trading this market. Therefore you will wipe out your account, for YOU, there is no Pros and Cons. I am not trying to insult you by my response.
I started day trading S&P's in the 1980's, one tic was a nickel and it was $25, a full point was $500, most normal range days was 3-5 points. I would have to call my broker who would call down to the floor to place my trade. Back then, unless one traded a volatility method, most used stop loss of a half a point or less. Because of the high commissions of today, extremely difficult to build a 2 tic SL method for today's trading. I say high commission of today, my cost back then was $20 rt, today I have to trade a ten lot to control same amount of $500, so even a $3.75 rt is much more costly than days of old.
MAE's have been explained well here, but they are derived from having a 'thought" of your type of a method to trade. Then applying money management rules, and of course backtesting it over the course of several years of tic data. By looking at the 3000 plus sample size, you can attain how much of a Protective stop to use using MAE. I concentrate on methods that have the smallest losing % within reason. Using a one point stop also generates many breakeven trades, which if you don't make one tic, is a losing trade. (commish)
I believe the amount of stop loss though starts with the entry, the tighter the "SL," the more perfect one needs to be for entry.
Experience comes into play as well. Unless you are well skilled at support and resistance, one point will be too little. And breakout methods using one point stop generally don't work cause of all the false breakouts.
Can one point stops be used successfully, you betcha. Although I believe my entry is very very good, where the money is, how to manage the trade once you are in. When I was a newbie, I tried to generate many more entries than money management rules, today I have one way of entry and some 30 plus money management rules.
And if you entry is very good, you can do what almost everyone says not to, add contracts as price goes against you, now each tic better of entry, I use one tic less for Stop Loss, so on occasion, last entry actually has a one tic stop loss. But this is achieved by your backtesting. Unless you backtest this approach, adding to losing position is foolhardy.
I must say, there were some very good informative posts on this subject.
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