I have divided my capital into units cause different brokers just do better for me or leased seat, so like stock/partial commodity depending on exchanges account has greatest percentages of capital and that is because my risk in almost nil cause everything gets hedged to as close to zero risk as possible, just too difficult to know what risk is overall as it is always fluctuating, but below 0.25% and should it rise to 0.5%, system automatically adjusts hedges, whether futures/ETF'S/options being used. There will be times of hedging the hedge of a hedge, so it gets complicated due to fact long term commodities I trade it like a commercial, selling/buying extremes, and often times long term stocks get hedged due to these signals. My past huge account failures in trading caused me to significantly alter on risk next to nothing long term especially on hedging open profits. System will often be long Dividend stocks/sold future's Indexes(hedge) currently and long stock/spx Puts(seeking profit), besides short Indexes/long calls(position seeks profit). There is more to the above as far as hedging, you just have to spend thousands of hours, LOL. The above is where most of my study of markets remains, day trading/scalping incurs the greatest risk and do keep open catastrophic long options in case of another 911. Risk based on 7k per ES is usually under 0.0033%, rather have too much used for margin that what most use where I see that as too small, if account lost 100 points per lot, broker would not be calling me. Actually stock systems uses predefined %'s for stop losses based on Index volatility and recalculated on weekly basis each day, tested better going back 50 years for me. I am much more interested in keep beating the Indexes by having much less drawdowns then they have and by being aggressively active in commodities so as to keep positive returns each year. In other words, if account is seldom having much drawdowns, don't have to recover huge losses to have decent years against the Indexes.
Bearing in mind it was suggested 2% of account capital risked per trade. His aim was a low enough number that even multiple consecutive losses would not drastically damage an account. But on the face of it, isn't it so practical to have a maximum and known capital risk on going into a trade?
The 2% rule talks about risk to account capital, there's nothing to say the distance from entry to stop cannot be volatility/range based.