The 2% that you refer to is what I use with the Hourly system.
With the VTO Modified I have yet to use a stop and have not decided where it should be. In 2002 I had a 7.92% loss but the year finished with a 40% gain. I guess that if I saw the thing going non stop down I would bail out. Such as what happened after 9-11. There would have been a 26% loss. I had not started using the system then.