The Math Behind the 1% Rule — Why Position Sizing Beats Win Rate

Been seeing a lot of threads about strategies, indicators, and win rates — but almost nothing about the one thing that actually determines whether you survive long enough for your edge to play out: position sizing.
Here's the simple math that changed everything for me.
Two traders, same $1,000 account, same 10 consecutive losing trades:

1. Trader A risks 10% per trade: $1,000 → $349. Down 65.1%. Needs 186% gain to recover.
2. Trader B risks 1% per trade: $1,000 → $904. Down 9.6%. Needs 10.6% gain to recover.

Same market, same losses, completely different outcome.
"But 10 losses in a row? That never happens to me."
With a 60% win rate strategy over 1,000 trades, the probability of hitting 10 consecutive losses approaches certainty. Even a 70% win rate will produce 7-8 loss streaks. If you trade long enough, it WILL happen.
My actual process:

1. Calculate risk in dollars: Account × 0.01 = max loss per trade
2. Divide by stop loss distance (in pips × pip value) = lot size
3. Enter trade, set SL immediately
4. Never move SL further — if it hits, accept the loss

The formula: Position Size = (Account × Risk %) / (SL Distance × Pip Value)
For a $5,000 account with 30 pip SL on EURUSD: ($5,000 × 0.01) / (30 × $1) = 1.67 micro lots.
I also use the ForexCracked risk management course which has the full breakdown with position sizing calculators and drawdown recovery math — free resource, no signup.
What's your risk % per trade? Genuinely curious.