Position Sizing for NQ Futures

Position sizing on NQ cannot be copied from other index futures. The contract’s volatility profile forces wider invalidation zones, which directly reduces viable contract size. Ignoring this relationship produces inconsistent risk regardless of intent.

Volatility dictates size

NQ covers more points per session than ES. Wider price movement requires wider stops to avoid noise-driven invalidation. Wider stops increase dollar exposure per contract, forcing size reduction.

The volatility drivers behind this behavior are detailed in Why NQ Is More Volatile Than ES.

Tick math is not the sizing input

Tick value defines incremental movement. It does not define likely movement. NQ’s danger lies in range expansion, not tick cost. Using fixed tick stops without accounting for expected range produces distorted sizing.

Tick mechanics and dollar exposure are covered in NQ Tick Size, Tick Value, and Dollar Risk Explained.

Contract count vs exposure

Reducing contract count is the only effective way to control NQ risk. Scaling size up to “feel productive” contradicts the contract’s structural behavior. Smaller size with wider tolerance aligns with NQ’s movement profile.

Micros and exposure control

MNQ mirrors NQ’s behavior at reduced size. It allows exposure calibration without changing trade logic. The price structure remains identical while dollar exposure becomes adjustable.