The ideal SL will depend on your risk capacity and risk tolerance. Tolerance is how much you feel like you can YOLO your funds, capacity is how much resources you have to be able to YOLO. If you're earning 1000$ per month as a salary and feel like gambling, you can gamble it all because you got a high risk tolerance. But if your rent and necessities require you to pay up 950$ to maintain your decent lifestyle, that means your capacity to YOLO is less than what you could tolerate. The generic response is not risking more than 1-2% of your capital per trade, which means with a 200$, you should only lose 1-2$ per trade if it busts and yet you reached a point where you had to see a -60$ unrealized PNL. The 1-2% rule isn't absolute, it's just a guide, it goes back to answering the question about your risk tolerance and your risk capacity.
I did not close the position and just risk it all then it bounced back.
This screams a lack of risk management with a 200$ capital to trade.
Yeah it's my bad, thanks for giving me an idea about the risk tolerance. I might consider it, how about the leverage? I actually used the default one which is 20x, what's your take on this?