{"url":"https://etfiq.com/academy/risk-and-execution/position-sizing-and-drawdown-limits/","section":"academy","title":"Position sizing: start from the worst fall | ETFIQ","description":"Learn to size a position from a loss limit and a fund's worst fall, using real max drawdowns for QQQ, TQQQ, SOXX and SOXL from ETFIQ scorecards.","as_of":"Nov 10, 2026","structured_data":[{"@type":"LearningResource","@id":"https://etfiq.com/academy/risk-and-execution/position-sizing-and-drawdown-limits/#lesson","name":"Position sizing: start from the worst fall","description":"As of Nov 9, 2026, TQQQ's deepest fall on weekly closes since February 2010 was 80.4%, against 35.1% for QQQ.","url":"https://etfiq.com/academy/risk-and-execution/position-sizing-and-drawdown-limits/","learningResourceType":"Lesson","teaches":"How to size a position from a fund's worst fall and a loss limit, and why a leveraged fund's history is a weak guide","educationalLevel":"Advanced","timeRequired":"PT7M","inLanguage":"en","isAccessibleForFree":true,"isPartOf":{"@type":"Course","@id":"https://etfiq.com/academy/risk-and-execution/#course","name":"Risk and Execution","url":"https://etfiq.com/academy/risk-and-execution/"},"position":3,"dateModified":"2026-11-10","author":{"@type":"Organization","name":"ETFIQ Research","url":"https://etfiq.com"},"publisher":{"@type":"Organization","name":"ETFIQ Research","url":"https://etfiq.com"}},{"@type":"FAQPage","@id":"https://etfiq.com/academy/risk-and-execution/position-sizing-and-drawdown-limits/#check","mainEntity":[{"@type":"Question","name":"You set a $3,000 loss limit. A fund's worst fall was 60%. What size does the rule give?","acceptedAnswer":{"@type":"Answer","text":"$5,000. $3,000 \u00f7 0.60 = $5,000."}},{"@type":"Question","name":"A fund fell 75% from its high. What gain does it need to get back?","acceptedAnswer":{"@type":"Answer","text":"+300%. 1 \u00f7 0.25 \u2212 1 = 3, or +300%."}},{"@type":"Question","name":"Why is a leveraged fund's worst fall so far a weak guide to its future worst?","acceptedAnswer":{"@type":"Answer","text":"One large daily fall in the index, times the multiple, can exceed anything in its history. a 3x fund takes about 3 times any single day's fall, so one rare day can set a new low."}}]},{"@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"ETFIQ","item":"https://etfiq.com/"},{"@type":"ListItem","position":2,"name":"Academy","item":"https://etfiq.com/academy/"},{"@type":"ListItem","position":3,"name":"Risk and Execution","item":"https://etfiq.com/academy/risk-and-execution/"},{"@type":"ListItem","position":4,"name":"Position sizing","item":"https://etfiq.com/academy/risk-and-execution/position-sizing-and-drawdown-limits/"}]},{"@type":"WebPage","name":"Position sizing: start from the worst fall","description":"Learn to size a position from a loss limit and a fund's worst fall, using real max drawdowns for QQQ, TQQQ, SOXX and SOXL from ETFIQ scorecards.","url":"https://etfiq.com/academy/risk-and-execution/position-sizing-and-drawdown-limits/","dateModified":"2026-11-10","isPartOf":{"@type":"WebSite","name":"ETFIQ","url":"https://etfiq.com"},"speakable":{"@type":"SpeakableSpecification","cssSelector":[".lede"]},"publisher":{"@id":"https://etfiq.com/#org"}}],"characters":5473,"truncated":false,"content":"ETFIQ / Academy / Risk and Execution / Position sizing \n \n Position sizing: start from the worst fall\n Data as of Nov 10, 2026. Rebuilt every trading night.\n As of Nov 9, 2026 , TQQQ's deepest fall on weekly closes since February 2010 was 80.4% , against 35.1% for QQQ.\n Risk and Execution \u00b7 Lesson 3 of 4 1 2 3 4 \n Slide the amount to see what each fund's worst fall would cost in dollars. Position (hypothetical) $10,000 On $10,000: QQQ worst fall $3,506, TQQQ worst fall $8,036, SOXX worst fall $4,444, SOXL worst fall $8,985. Hypothetical positions. Step 1: the limit (hypothetical). A $50,000 account with a 10% loss limit on any one position: $50,000 \u00d7 0.10 = $5,000 . Step 2: divide. QQQ: $5,000 \u00f7 0.351 = $14,245 TQQQ: $5,000 \u00f7 0.804 = $6,219 SOXX: $5,000 \u00f7 0.444 = $11,261 SOXL: $5,000 \u00f7 0.898 = $5,568 Step 3: the climb back. A fall of D needs a gain of 1 \u00f7 (1 \u2212 D) \u2212 1 to recover: QQQ: 1 \u00f7 0.649 \u2212 1 = +54% TQQQ: 1 \u00f7 0.196 \u2212 1 = +410% SOXL: 1 \u00f7 0.102 \u2212 1 = +880% Step 4: what the floor misses. A 3x daily fund loses about 3 times its index's one-day move. A one-day index fall of 33.3% would take a 3x fund to about zero (3 \u00d7 33.3% \u2248 100%), whatever its history shows. \n The question\n How much of my account can I put into one fund without one bad stretch wrecking it?\n The idea\n Most people pick an amount first. A sounder process runs the other way: Set a loss limit. This is the most you accept losing on one position, in dollars. It is often a share of the account.\n Find the fund's worst fall. This is its max drawdown , the biggest drop from a high to a later low, which the Beginner course calls the worst fall.\n Divide. Position size = loss limit \u00f7 worst fall.\n \n Then remember: the worst fall so far is a floor, not a ceiling. The future can be worse. ETFIQ's scorecard measures on weekly closes, so a deeper daily low can sit inside a week.\n Worked example\n The 4 steps beside the drawing at the top work this through on ETFIQ data. Point at a step to light the part of the drawing it describes.\n From the scorecards on two fund pages, as of Nov 10, 2026 . TQQQ and QQQ cover February 2010 to November 2026 ( 872 weekly returns). SOXL and SOXX cover March 2010 to November 2026 ( 868 ).\n Fund Worst fall \n QQQ \u221235.1% \n TQQQ (3x QQQ) \u221280.4% \n SOXX \u221244.4% \n SOXL (3x SOXX) \u221289.8% \n Each loses about $5,000 if its worst fall repeated. The 3x funds get under half the dollars. Their worst falls were 2.0 to 2.3 times their index's, not 3 times, because losses compound on a shrinking base and nothing falls more than 100%.\n A \u221280% fund needs to multiply about five times to get back.\n This is why a leveraged fund's worst fall so far is the weakest guide of all. See lesson 1 on how swings compound.\n The common mistake\n \"The worst fall so far is the most I can lose.\" It is only the worst so far, on weekly closes. SOXX's worst fall was \u221244.4% and SOXL's \u221289.8% . A deeper index fall would take SOXL deeper still. Size from history, then leave room for worse.\n Check your understanding\n Pick an answer to see why. Two of three right passes the lesson.\n 1. You set a $3,000 loss limit. A fund's worst fall was 60%. What size does the rule give? A $1,800 B $3,000 C $5,000 D $7,500 Answer: C. $5,000. $3,000 \u00f7 0.60 = $5,000. Not A: $1,800 multiplies the limit by the fall instead of dividing. 2. A fund fell 75% from its high. What gain does it need to get back? A +75% B +150% C +300% D +400% Answer: C. +300%. 1 \u00f7 0.25 \u2212 1 = 3, or +300%. Not A: the gain is measured on a much smaller base than the fall was. 3. Why is a leveraged fund's worst fall so far a weak guide to its future worst? A One large daily fall in the index, times the multiple, can exceed anything in its history B Leveraged funds can't fall further C Weekly data always overstates falls D Max drawdown includes the fee Answer: A. One large daily fall in the index, times the multiple, can exceed anything in its history. a 3x fund takes about 3 times any single day's fall, so one rare day can set a new low. Not C: weekly closes can miss a deeper daily low, so they understate falls, not overstate them. \n Takeaways\n Set the loss limit first, then size: limit \u00f7 worst fall. \n Treat the worst fall so far as a floor and leave room for worse, most of all in leveraged funds. \n Check the climb back: a \u221280% fall needs +400% or more to recover. \n Do it on ETFIQ\n Read your fund's worst fall on its scorecard Your fund \n Where to next\n Next lesson: Fund risks: tracking misses, premium spikes, closures Previous lesson: Flows and crowding: context, not a signal Risk and Execution: all lessons The explainer behind this lesson ETFIQ Academy How ETFIQ computes these numbers \n Cite this page. ETFIQ, Position sizing: start from the worst fall, data as of Nov 10, 2026. https://etfiq.com/academy/risk-and-execution/position-sizing-and-drawdown-limits/ Free to use with attribution for data ETFIQ computes; issuer data stays under its owner's terms. The underlying files are at Open data .\n Other forms Plain ETFIQ, Position sizing: start from the worst fall, data as of Nov 10, 2026. https://etfiq.com/academy/risk-and-execution/position-sizing-and-drawdown-limits/ APA ETFIQ. (Nov 10, 2026). Position sizing: start from the worst fall. Retrieved from https://etfiq.com/academy/risk-and-execution/position-sizing-and-drawdown-limits/ Markdown [Position sizing: start from the worst fall (ETFIQ, Nov 10, 2026)](https://etfiq.com/academy/risk-and-execution/position-sizing-and-drawdown-limits/)","source":"ETFIQ, independent ETF data. Recomputed nightly from public filings and prices.","publisher":{"@id":"https://etfiq.com/#org","name":"ETFIQ","url":"https://etfiq.com"},"license":"https://etfiq.com/license/","license_text":"Data ETFIQ computes is free to use with attribution: ETFIQ (etfiq.com). Issuer data stays under its owner's terms.","citation":"ETFIQ, Position sizing: start from the worst fall, data as of Nov 10, 2026. https://etfiq.com/academy/risk-and-execution/position-sizing-and-drawdown-limits/"}