I dont think there is any magic formula to reduce a systems draw down. Some systems are better left without stops as they actually increase draw down, others benefit greatly. This is highly system dependent. In my experience mean reverting systems and stop and reverse systems are hurt the most by stops. I personally test about 14 different kinds of stops on whatever I am working on. obviously having a catastrophic stop loss is mandatory. Usually I do an optimization on the stop to see how it effects PF, max dd, or whatever fitness factor your looking at. Usually the chart starts with too tight where its stopping out winners and losers, then the Goldilocks zone where things are just right, then so far away that it doesn't do anything. Now this optimization isn't to actually select my stop placement but to understand how my system reacts to different stops. I prefer to look at % stops, volatility stops, indicator stops and price action based stops as opposed to hard dollar stops/ targets.