The fixed-percentage-risk model is a position sizing approach where a trader decides a consistent maximum percentage of total account capital to risk on any single trade (commonly 1-2% for many retail traders), applied every time regardless of confidence level.
Position Size = (Account Size × Risk Percentage) ÷ Stop-Loss Distance per unitRelated Reading
See a full worked calculation and a comparison table across different risk percentages in Position Sizing Explained: How Much Should You Trade?.