← Glossary

Percent stop

A percent stop places the stop at entry adjusted by a fixed percentage, so the dollar distance scales with the entry price itself — a $10 stock and a $200 stock at the same percentage produce very different R values. It doesn't account for the instrument's actual volatility, which is what an ATR stop does instead.

Stop = Entry × (1 − Pct/100)

This explains what percent stop measures. It isn't investment advice — see the disclaimer.