Swing Traders

 A combined Dynamic RSI & Center of Gravity is quite a strong signal. 

Nevertheless, it remains crucial to place a stop. A stop protects our account.

Avoid placing the stop loss too tight to your entry point. Give your position some breathing space.

How to determine the distance of your stop (the breathing space)?

The Average True Range indicator also known as ATR may be of help.

This indicator computes the average range over the last 20 periods. The range is the difference between the highest and the lowest price.

The ATR reflects the volatility quite well. 

In the example below one notices a short order on the WTI Crude Oil and could open a short position at 86 USD.

The ATR value is 1.9 USD, which means that the WTI is currently ranging with 1.9 USD. So it makes little sense to put a Stop Buy order at e.g. 86 + 1 = 87 USD. The stop would be triggered very quickly and lots of small stopped out positions will eventually result in a huge loss on your account.

So, consider placing the stop at 86 + 2 x 1.9 = 89.8 and thus offer some breathing distance to the short position.