Understanding Position Sizing Beyond 'X% of Account'

Been diving into how the pros really think about position sizing, and it's more nuanced than just the standard 'risk 1-2% of your account' rule of thumb. While that's a good starting point, it doesn't account for volatility or the actual probability of your setup. For instance, risking the same dollar amount on a $RBLX scalp with a tight stop versus a wider stop on a longer-term $USDCAD swing feels off, given the different volatility profiles and potential move sizes.

What I'm realizing is the critical piece isn't just a fixed percentage of capital, but rather calculating the dollar value of your stop loss first, and then working backward to determine how many shares or lots you can take to keep that dollar risk within your comfort zone. This seems to allow for more consistent risk per trade, regardless of the instrument's price or daily range. Anyone else approach it this way, or have other methods that factor in the actual market conditions more dynamically?