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2 - Knock uncouscious bandits on horses (Horsemen/Leaders/Skirmishers).
3 - Sell them to a ransom brokers.
4 - Repeat.
5 - Profit.
Who said slavery was a bad thing ?
Oh wait i'm black...
I also tried your way but the profit margin is too small. The most you can get out of each run, say 20-30 higher tiered slaves will be 4-5k, but then depending on who you attacked you will only have to fight it out + might lose men
Fighting each battle out will waste time, time you can use to instead go with the trading options.
Also, depending on who you attack the profit will fluctuate and in the battle you might lose precious soldiers that you had to train up, considering upgrading a reach kight to a heavy reach knight can cost up to ~588 gold per knight losing even one is too much
To make a good enough profit you need to enslave higher tired units, which in turn increase the risk of damaging your own expensive forces
Also most towns have around 1k in the early game as time goes on this gets better, but almost all coastal towns (Oldtown, White Harbour, Lys, Volantis) and a few others have 6-10k cash at all 3 dealers
With a little bid of luck u get up to 5-7k Stuff out of one fight. So u easy get tons of money.
i am around day 110, already have 200k cash, and in nearly all towns (except a few, because all businnes there tell me its a negative income) a businnes.
And if u are unlucky u get a bad hit in the heat by a simple forest bandit and easy loose most of your health. And if u get one time knocked out, the show is over, because u have lost.
And i u always need small amounts of enemys, if there come 50 or more stronger bandits than u can do nothing more than run away.