It was academics who did the studies, multiple ones if I recall correctly. They say to not risk more than 2% per trade. If you are are newbie, risk no more than 1% per trade. That is to minimize the chances of blowing out your account. A lot traders blow out their accounts because they bet too big, in relation to their account balance. Say, a trader risks 50% or more of his monies on just one trade. If that trade turns into a big loser, he has lost a good chunk of his monies. Personally, I try to put on, no more than 5 trades. My reason being, if you are risking 2% per trade, total maximum risk would be 10% of your account balance. That is on a worst case scenario already. With the use of stop losses, you probably, will lose only a fraction of that 2% maybe, 0.5% per trade, most times. Other times, you might lose 0.75%, so your actual loss is much lower. With a couple of large winners, that should be more than enough, to offset those small losses and end up with a decent profit. You can probably, do a Google search to find those studies if you are so inclined.
Here is one article on Investopedia.com https://www.investopedia.com/articles/trading/09/risk-management.asp
All those "methods" are to applied in real-time, updated as the information evolves. Most people do a static application. The problem is all the Bots are designed to chop them up. Add the dynamic element and it will put you in a smaller crowd. The premises of the trade entry and exit can change after the entry. To ignore this simple fact is to ignore reality.
Indeed Golden Words. Want to quote another line with same essence I read in some book was that " A single man with lot of money on his disposal and a computer with internet today can turn the markets around with his single mouse click!"
I am not trying to be rude.....but you have a PhD and have developed a successful system....and yet you are defeated by the simple task of going to www.amazon.com and typing in "risk management trading" in the search box? It took me less than 30 seconds and there are a whole host of books regarding what you are looking for. Anyway, risk management is not the same in all trading instruments or timescales. If you trade futures, it will be different to say trading options, which will be different to trading vanilla stocks. If you are a day-trader then your stops may be a lot more closer than if you are a position trader etc. Also, risk management (like trading itself) cannot fully be learnt from books/academia. Nothing teaches you more than the actual loss of real money. Books will give you general principles, but you have to refine the process to your own risk-tolerance, personality etc. You don't need to give away any of your secrets, but if you are able to share a bit more information about what you trade (stocks/forex/options/futures/commodities), how often you trade (day-trader/position-trader/swing-trader), how many trades do you do roughly in a day/week/month etc etc, then you may get more reasoned responses. All the best.
What are you trading (basic strategy)? If you're trading intra-day momentum, your exist signal should be deceleration in a trend (you define). I recommend reading Ernie Chan.