If I understand correctly, they don't create different returns or expectancy when everything else is held constant. For example, on a CrowdStrike entry, I could use a 1.5% stop or a 3% stop below the previous candle low. The difference is simply where I place the stop. It could affect expectancy if the tighter stop gets me stopped out, but I don't have data to compare the win rates of tight and wide stops. From my experience, the risk multiples gained by using a tighter stop outweigh the reduction in win rate by a lot. I used wider stops several years ago, but gradually realized this.
Watch on YouTube ↗: Do stops below 1% and stops around 2% to 3% create different returns or expectancy?13 Aug 2026 · 1:06:21@martinlukkt
Source: $CBRS gap down | 13 Aug 2026