I don't mind a heavier wire and have used 18 ga because that's all I had. Check the following:
5 volts with 3 ohm atty = 1.67 amps
5 volts with 2.5 ohm atty = 2 amps
5 volts with 2 ohm atty = 2.5 amps
I personally prefer twisted stand wire as it is more flexible.
If you are looking for more performance from a 3.7 volt mod consider using high drain
batteries. It is amazing how much difference they make. I built a 5 volt mod but after I used high drain batteries in my 3.7 volt mod the 5 volt is rarely used any more.
Your mileage may vary...