I think it's all relative. There are a lot of strategies now that simply won't work with such an approach. Of course, if you remember about the reserve and the amount of capital in general, if it allows, and you do not let the situation go on its own, and constantly analyze what is happening on the market, then even a narrow stop will not limit you from the profit. Again, everything depends on how each trader is used to trading. I always have some disputes with my friends in the sphere, because absolutely everyone has their own opinion. Everyone already has some experience and copes with these or those situations in different ways. Therefore, it is impossible to say that this approach can become universal and help in any situation without exception. Just try what will suit to you.
And how will you deal with a Black Swan or other such equally colorful named catastrophic market move?
You're just going to allow that kind of event to have a catastrophic impact against the trading account?
Absurd. Risk management is the #1 priority for successful investing. Just because you feel your account is large enough to eat a -3000 pip negative spike against does NOT mean that everyone copying your signal and such will have those same levels of protection. Now I'm not saying you're selling a signal or allowing direct trade copies, but typically when people have a largely profitable account, there is also usually someone selling those trades via signals. Etc etc etc. You're ignoring the basic #1 rule of successful investing.
RISK MANAGEMENT is the #1 priority. Anyone who says Risk Management isn't important, is someone who is putting their entire investment capital at risk, and putting the investment capital of others at risk as well.
If you don't properly manage the risks, then it's absolutely irresponsible.
Risk Management is more important than generating a fast profit.
If it looks too good to be true, it's probably a scam! Let the buyer beware.