What I usually do is to calculate the stop loss according to the volatility of the market. If the market is very volatile (and you think you guessed its direction right) then a less tight stop loss makes sense. If the market is not very volatile, then you could use a tighter stop. You can use any volatility measure to calculate your stops. Two examples are the Average True Range (ATR) or the Standard Deviation (over the last n prices). A stop loss calculated in this manner usually does better than a “percentage” stop loss.
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i don’t doubt it, but i think almost anyone trading for a living would agree that percentage-based methods of setting stop-losses are among the very worst, so to be fair it isn’t really saying very much! 
in all the independent, objective back-testing and forward-testing i’ve ever seen (and certainly in all the independent research work on this subject published by such authors as Tharp, Chande and Taleb, among others, in their various textbooks and academic papers), positioning stop-losses just beyond swings high/low of prices has significantly out-performed volatility-based methods
we all make our own decisions about this, of course, as about everything else, but that’s certainly good enough for me! 
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My best place for the SL is going to be determined by the chart. Its going to be a daily high or low, usually the H or L of the trigger day for the set-up. Sometimes I refer back to a higher H or lower L. If the chart doesn’t point to the SL, I would use ATR.
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I think you are right, but… aren’t swings high/low just another way (a different way, of course) to account for volatility when determining stops? Granted, in a more “extreme” fashion than the ATR or SD. Stimulating, insightful and interesting reply!
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daily high/low are “local” support/ resistance area, so you can use it as place to stop loss but it could be good place to enter to market by buy/sell stop and limit orders.
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i think the point is that they’re a support/resistance-based way
i think (along with Tharp and all those others mentioned above) that that’s why they’re so consistently proven to work so much better than volatility-based methods
“swing-high” is another way of saying “resistance”; “swing-low” is another way of saying “support”
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It depends actually. Sometimes I use stop loss even 5-6 pips away from my open position.
Thanks. Sorry what’s ATR setting?
Sorry I should have been more specific. here’s a quote from the Web:
" Average True Range (ATR) is the average of true ranges over the specified period. ATR measures volatility, taking into account any gaps in the price movement. Typically, the ATR calculation is based on 14 periods, which can be intraday, daily, weekly, or monthly."
Its a very popular way of calculating a stop loss, especially for longer time frames. Most trading platforms has an ATR indicator you can place on a chart.
Here’s a BabyPips link: Average True Range (ATR) Definition | Forexpedia™ by BabyPips.com
You do like 1x-2x ATR? Something like that?
Typically 1.5 or 2. Otherwise I find ATR, as is, often stops out too soon. I usually combine with a trailing stop at break even.
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I agree pretty much. If I do use ATR(14) for SL price level, I always calculate entry-SL distance as 2 x ATR. anything lower, it seems on any time-frame, is too close to avoid being hit by “normal” volatility. I have heard it said that in a trend-following situation 3 x ATR is optimum - I still haven’t tried this.
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It’s worth checking out 3 ATR as I back-tested that on daily EURUSD from mid Jan 2022 to end of May 2023 and it was profitable with only one losing trade. However the size of the SL means a smaller lot size and therefore less return (and maintaining a low risk). Like so much of this stuff, it’s a balance
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Depending on a variety of variables, it could vary.
Your stop loss should be established carefully and in accordance with your strategy.
I should clarify that i’m not really that skilled.
I find It hard to have a fixed range of stop loss.
It always depends on market conditions, current volatility and price action.
You must set your stop according to your strategy, and adjust the lot size to your account balance.
So for example if your strategy calls for a 10 pip SL, you can trade 3 lots, but if It calls for a 30 pip SL, you just trade 1 lot.
It’s better to place a Stop loss that makes sense, protects your position, and gets you out as soon as you are wrong… rather than just limiting yourself to a certain range.
This said, I like to keep my losses small… and cut them fast if price goes against me.
That’s how I started and it just didn’t seem to work for me. I try to look at market structure, but then that seems to get sometimes going too big and then I end up fumbling around with when to move to break even, how wide to keep if price moves in my favor, stuff like that.
I mean I think like that, but it’s sometimes tough because I end up making it too tight. Maybe a ATR-based and market structure SL, whichever is smaller could do the trick?
Don’t define your stop loss based on a set number of pips. Place your stop loss where it’s protected by market structure and would represent an invalidation of the trade if reached.
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Remember that the entire market, including mm’s, see the same chart - usually not difficult to figure where retails stops are.
That’s a given. My statement was general not specific to which exact structure points to use, it goes deeper than just picking the last swing point.
It depends on support and resistance level actually but on average it ranges from 20 to 30 pips and for swing trading, it is bigger like 50 to 60 pips.