If you do your homework well before start of trading day, I really don't see the need for setting SL...especially if day trading and scalping/or semi-scalping for profits as market condition changes.
For longer term trading (for those >100 pips profits with >0.05 lot size), if you have done your research well and have anticipated market movements due to certain economic factors surrounding a particular currencies pair or commodities, you really have no need to set a SL if you have chosen trade entry level carefully based on those economic factors. And, of course, don't just jumped into a trade immediately without first observing market sentiments for at least 15-20 minutes. But then, make very small lot size trade to gauge market movements before going into larger lot size trades.
After blowing up more than half a dozen Micro, Std, & ECN accounts (high risk with high profits), I have learned that the biggest single mistake is having just too many opened trades (over 15 positions) at one time and risking more than 60% of capital.
On most normal trading days, the account balance can handle the losses which will turn into profits as anticipated. But it is the unexpected economic happening which will cause mayhem and eventual account wipe out.
It really is a terrible and horrible gut wrenching feeling to watch that usd5-30k account turned into pennies or nil balance in matter of minutes.
Yes, I agree 100% that the safest trading strategy is in not risking more than 3-5% of account capital at any one time as the huge equity margin can ride out any initial losses.
In fact, I would add that only a complete idiot can loss money in such a trading strategy. So, why set SL on those "safe" trades?
I have seen quite a number of accounts in various websites which suffer losses mainly due to SL being hit. If no SL was set, I am very sure that these accounts would not have incurred 30%, and in a couple instances 98% losses caused by SL being hit.
It is my conclusion that patience with discipline trading will built up any account over a period of time!
Seriously, is it really that difficult to make 0.5 to 1 % profit per trading day...or even 3-5%????