If you are talking about trend following, a longer time frame requires that you set your stop loss lower. If you get stopped out your loss is bigger, but if you don't you are rewarded with a long trend. Win or lose, longer frequency trading takes less work.
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Using different risk allowances for different time frames?
- Thread starter Metamega
- Start date
a longer time frame requires that you set your stop loss lower.
Or "wider", anyway, if not "lower" (there are short trades, for which you'd often set it higher?).
Different risk-exposure in different time-frames is completely logical, reflecting the fact that (according to what constitutes one's edge) longer time-frames may give fewer and more reliable trading signals, and one normally derives risk-exposure from expectancy.
What do you mean by expectancy?