Most folks position the hoods relative to the flats on the drops of the bars. Take a ruler/yardstick and put it in your hand. Then put your hand in the drops carrying the ruler, so that the ruler is flat against the bottom of the bar. The ruler sholut be protruding out from the front of the bike. Many people position their brake levers so that the bottom of the lever touches the ruler. Personally, I like the hoods just a tad higher, and the bar ends nearly level, maybe with just a slight downward slatn.