Following is a test I ran on excel on major pairs for the past 5 years. I was trying to find the rate of success if I take a trade on the very first day of the signal (+6,+7,-6,-7 - Strongest Pair/Second Strongest Pair, Second Weakest pair/Weakest Pair). And I have kept the stop loss as a variable.
As you can see 200 pip stop loss gives us a 63% win rate with a Av. R:R of 3.08. But I have been using a 2.5 - 3 ATR stop for my trading and I use a 3 - 4 ATR stop on USDCHF pair.
*NOTE: I use 20 SMA instead of 34 SMA, results are almost similar. The reason I use 20 is I have found over the years that 20 SMA is tend to catch big trends bit earlier than 34 SMA.