What a 1% loss cap actually lets you trade
Sizing from risk turns the question around. At an illustrative 1% maximum loss per trade, a $1,000 account can lose $10 before costs. With a stop 0.5% from entry, the mechanical position size is $10 ÷ 0.5% = $2,000 of notional, before adjusting for fees and slippage.
If that trade then moves 1% in your favor, it makes $20 gross, not $100. A real total-loss cap also has to leave room for both trading fees, slippage, funding where it is charged, gaps through the stop, and tax outside the trade's P&L. This is sizing arithmetic, not a recommended setup.