Distance first, then size
A stop belongs where the idea is wrong — below the structure you are trading, not at a round number that happens to equal the loss you fancy. Decide that distance from the chart, then let the position size shrink or grow to keep the money at risk constant. Doing it the other way round produces stops placed at whatever depth makes the position you already wanted feel affordable, which is how stops end up inside the noise.
Percentage stops and volatility
A 4% stop on Bitcoin and a 4% stop on a small-cap altcoin are not the same decision. The altcoin can travel 4% while nothing is happening, so the stop is inside its ordinary range and will be taken out by noise rather than by being wrong. If you use percentage stops, scale the percentage to the pair's daily range instead of using one number everywhere.
Questions people ask
Why does it show the win rate?
Because a stop and a target together define whether the trade can pay. At 3:1 you need to be right a quarter of the time; at 1:2 you need two thirds. Seeing that number next to the stop is the quickest way to notice that a tight target and a wide stop is a bet you will struggle to win often enough. The full version is on the risk/reward calculator.
Will my stop fill at that price?
Not necessarily. A stop-market order becomes a market order when triggered, so in a fast move it fills below your level — sometimes well below. A stop-limit will not fill at all if price gaps past the limit, which leaves the position open in exactly the conditions you wanted out of. Treat the number here as the trigger, not a guarantee of the exit.
Does this work with leverage?
The stop price does not change with leverage — only what it costs you does. What leverage changes is how much room you have before the exchange closes the position for you, so check that the stop sits comfortably before the liquidation price. If it does not, the position is too large for the account.