[isatrader]

Looking at the base it does seem like the stop loss would be quite far from the breakout point (~32%)
2x 52-week ATR is closer at 6.56, but still around 21%, but not around any support. It does seem like many stage 2 I've looked at has far away stop loss, is there any way to remedy this other than taking a smaller position size?

The stop loss should always be set at a point where you'd definitely want to sell to the stock. So for a trader position it should really be at least under the 50 day MA, and preferably a recent level of support as well. The purpose of the 2x 52 week ATR is to judge whether the entry point is then close enough to be tradable, based on the stocks average volatility over the last year. So this often leads to me passing on stocks until there's a reasonable consolidation, which can then provide a level of support that is close enough to make an entry viable. This is why when using the trader method you'll find cup and handle patterns, or volatility contraction patterns the best imo. As they provide the lower risk entries that you need to increase your chances imo.

Smaller position sizes definitely help, but there's not enough info on the trader method in the book, but other traders like Mark Minervini have expanded on it over the years, and he also wrote a very good book which can help learn the proper entry points, which was called Trade Like a Stock Market Wizard: How to Achieve Super Performance in Stocks in Any Market by Mark Minervini