There could be multiple strategies to control and to handle risks effectively while trading but what I am following in my own trades is, risking only up to 10% of my available capital. Yes, I do set my stop-losses levels only up to 10% of my capital regardless of where is my target levels will be. I have seen people who adjust stop-loss levels based on targets like if a signal is about 20% of profits then they start think about stop loss up to 20% and when market is reaching those 20% of stop loss levels.

But, I do not change my policy of setting stop loss regardless of what signals are suggesting. This helps me to close the trades when market is doing against me like I do not need to wait more but I may start another trade to compensate my previous trades. I believe this is all about how we treat the unexpected losses and how we maximizing the chances to get us into profit zones.