Sorry for such a long response, but hopefully, it helps. I have two possible types of entries, so I keep track of their stats separately. It becomes obvious that the reason for the 1 percent per trade risk is because you know in advance that you will lose trades. Let’s say that I have a 60 percent win percentage over time. That means that I will lose 40 out of 100 trades. If my wins are larger than my losses on average, I will make money. My losses will be spread out over 100 trades in a distribution. The 1 percent risk per trade most likely keeps my draw down at a minimum of say, 10 percent. So, at any one time, it is unlikely that I will ever draw down more than 10 percent. If I’m “lucky”, my losses will not come when I first start trading my entry. So, in that case, I will never actually see any draw down of my initial account capital. If my draw down stays at 10 percent or lower, I will only have to make back 11 percent to be back at break even. If I were to draw down 50 percent, then, I would have to make back 100 percent to be at break even. So, that is reason why one wants to keep their draw down as minimal as possible. The markets are a little bit of a strange concept. On one hand, you have repetitive patterns that will play out. When the market starts to trend, over time, lots of people will jump on board. Eventually, it will burn itself out, greedy traders will get caught at the top of an up trend, and the market will go sideways or reverse. While there are patterns, there has to be an element of randomness. I read a book on trading once where there was this story. A guy was working for a trading firm. He told his boss that he didn’t think the market could fall below this support level. The boss called in a large sell order. The market fell through the support. There is just no way that anyone can tell what all is going on, from some idiot getting greedy today to some idiot risking his house, to some master trader buying on swings. So, we are learning to think in probabilities, similar to how a casino makes money, and trading a system where we seek to attain consistency, and understand what the probabilities are over time.