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.