This is a horrible method. You can make money certainly, but it is sub par to getting the most out of a winner. You need the full winnings to significantly more than offset the inevitable losses. Just because a professional may do it, does not make it right. It is wrongheaded at best.
I think it comes down to how many times his first target is reached, how much first target is to amount of risk times two, cause if first target only reached 50% of the time, are you profitable? Even at 60% if first target equals total risk, it is a losing system, that's why so many lose in day trading, at least one of many reasons, commissions/slippage really eat when doing more. Only those that do heavier volume can ek out enough for the extra ten percent. How many times does 2nd contract comes back to breakeven or less than first target? "Edge" changes as one ages/education of price, what you once thought was important isn't even considered.
When a target level is hit and price then starts to futz around making a double Top or double bottom or a lower high or lower low I then make my judgment on price action I have no intention on letting price go all the way back to my entry level.
You haven't shown any math at all. First of all, you don't know his precise entry strategy. You also don't know the expectation for the trade based upon his first price target, and then you don't know the expectation for the trade based upon his ultimate exit. You also don't have any idea what the percentage winners will be in either case, how many times his initial stop loss will be hit, or how many times his breakeven stop will get hit once he moves it to that level for the second half of the position. Therefore, you've calculated nothing...where is your math?
Of course, I don't need to know anything about where the entries or exits are or the specifics of his system to understand common sense mathematics. If it makes sense to take half the position off, it makes sense to take the whole position off. After all, both contracts would run to full stop loss---why not let the winners run full as well. Trading 101.
Actually both contracts wouldn't run to the full stop if my target is hit 1st. And like I said earlier i won't let my stop be hit if price action says I should get out.
But when you have a loser, they both will run to full stop--however you will never have a situation where both contracts run to full win.