Library
Trend · QQQ · 1D

Does EMA 8/21 trend rider actually work on QQQ? We tested it

We ran EMA 8/21 trend rider on QQQ through walk-forward testing and a 100-run random-entry gauntlet. 3 of 4 unseen periods positive. Beat 75 of 100 random-entry runs.

WALK-FORWARD VERIFIED EDGESTACKER ENGINE
Return +86.2%
Win rate 41.2%
Max drawdown −12.9%
Trades 51
Sharpe 0.82
Equity curve

Equity curve over Aug 2016 to Jul 2026. Hover any point for its value. Turn on buy and hold to compare.

PeriodWindowReturnSharpeTrades
1 Aug 2018 to Jul 2020 +39.2% 1.77 6
2 Jul 2020 to Jul 2022 −6.4% −0.39 11
3 Jul 2022 to Jul 2024 +11.7% 0.74 9
4 Jul 2024 to Jul 2026 +18.8% 1.10 11
3 of 4 periods positive. Mean Sharpe 0.80. Worst period −6.4%.
Market matrix
Edge held on 9 of 28

The same rules, tested on 28 tickers. Edge held on 9. We ship it on those.

QQQ SHIPPED
75/100 EDGE
NFLX
98/100 EDGE
MSFT
93/100 EDGE
JPM
93/100 EDGE
GOOGL
86/100 EDGE
AAPL
84/100 EDGE
SPY
79/100 EDGE
IWM
78/100 EDGE
GLD
76/100 EDGE
Show every ticker we tested
MARA
99/100 NONE
PLTR
98/100 NONE
MSTR
82/100 NONE
AMD
72/100 NONE
BA
65/100 NONE
DIA
59/100 NONE
COIN
58/100 NONE
AMZN
56/100 NONE
XOM
51/100 NONE
RIOT
47/100 NONE
TSLA
45/100 NONE
UBER
43/100 NONE
AVGO
42/100 NONE
META
30/100 NONE
SMCI
29/100 NONE
NVDA
24/100 NONE
MU
15/100 NONE
SOFI
13/100 NONE
HOOD
too new TOO NEW
The rules
Entrywhen EMA of close over 8 bars crosses above EMA of close over 21 bars
Exitwhen a signal fires (close crosses below EMA of close over 21 bars), or stop-loss at -10%
Sizing**Position size:** risk 1% of account → position ≈ 10.0% of account (1% ÷ stop 10%).
Diagnosis

This strategy made money overall, turning an 86% total return on QQQ over 51 trades. The ride was moderately lumpy, with a Sharpe ratio of 0.82 and a win rate of just 41%, meaning most trades lost money but the winners were large enough to carry the result. The worst pain came during a drawdown of nearly 13% that lasted from late 2021 through mid-2022, which is a long stretch to sit through. The result is not driven by just a few lucky trades, since the entry timing beat 75% of random entries, showing that the entry signal itself adds real value. The edge was also consistent, as the strategy was profitable in three out of four walk-forward test periods, so the performance wasn't just from one hot streak.

Run this on your own account.

Sign up free. EdgeStacker runs a fresh backtest for you, then alerts you on the Today screen when the setup fires.

Test it yourself, free