Yes that is a per contract crash stop. The formula is based on a maximum loss. In this number I also include commissions and adjust accordingly. This may or may not be the actual number based on market I am trading. i.e. NQ I would use 8-10 points $160-$200 etc.
In day trading stops are closer as I monitor the action. But should things get out of hand this is how much it would stop at, hopefully.
