That’s just like bankroll management in gambling. For OP, if he starts with $20,000 for trading, he’d only risk $200 per trade. It’s basically the amount he’s comfortable losing on each trade.
That is a good risk management. To be using just 1% of his trading fund for trading. Even if he loses the money, he will not be thinking about the losses just as it is in gambling.It is what the OP meant because that’s the term they usually use on forex since they don’t set stop losses like the crypto exchange, they use the entire 1% to enter a trade or to set their lots size using that as a bench mark so they don’t lose more than that when a stop loss is it, this doesn’t changes no matter the number of trades they open.
As for crypto trading you can also implement this, what you do is manually calculate your percentage risk like 1% of 10k which is 100 then you set your position size according to this by multiplying it with the leverage you intend to use. For example $100 trade in a 10x leverage will be $1000 position size and a 50x will be $5000 positions on both leveraged the stop loss won’t exceed the $100, so you need to check it too for confirmation
