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Trend · QQQ · 1D

Does EMA 20/50 trend rider actually work on QQQ? We tested it

We ran EMA 20/50 trend rider on QQQ through walk-forward testing and a 100-run random-entry gauntlet. 3 of 4 unseen periods positive. Beat 86 of 100 random-entry runs.

WALK-FORWARD VERIFIED EDGESTACKER ENGINE
Return +110.6%
Win rate 51.9%
Max drawdown −22.2%
Trades 27
Sharpe 0.91
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 +37.6% 1.63 6
2 Jul 2020 to Jul 2022 −8.0% −0.73 6
3 Jul 2022 to Jul 2024 +16.0% 0.85 5
4 Jul 2024 to Jul 2026 +25.8% 1.22 4
3 of 4 periods positive. Mean Sharpe 0.74. Worst period −8.0%.
Market matrix
Edge held on 7 of 28

The same rules, tested on 28 tickers. Edge held on 7. We ship it on those.

QQQ SHIPPED
86/100 EDGE
NFLX
97/100 EDGE
META
95/100 EDGE
AMD
94/100 EDGE
MSTR
89/100 EDGE
NVDA
80/100 EDGE
AAPL
79/100 EDGE
Show every ticker we tested
RIOT
94/100 NONE
COIN
93/100 NONE
XOM
80/100 NONE
UBER
68/100 NONE
MSFT
66/100 NONE
SPY
58/100 NONE
IWM
53/100 NONE
PLTR
52/100 NONE
GLD
45/100 NONE
AVGO
44/100 NONE
DIA
39/100 NONE
GOOGL
30/100 NONE
MU
30/100 NONE
JPM
30/100 NONE
AMZN
29/100 NONE
TSLA
26/100 NONE
BA
19/100 NONE
SOFI
14/100 NONE
SMCI
5/100 NONE
MARA
5/100 NONE
HOOD
too new TOO NEW
The rules
Entrywhen EMA of close over 20 bars crosses above EMA of close over 50 bars
Exitwhen a signal fires (close crosses below EMA of close over 50 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 a 110% total return on QQQ, but the ride was very lumpy. The worst stretch was a brutal 22% drawdown that lasted over three years, from September 2020 to November 2023, which is where the strategy hurt most. With only 27 trades and a win rate just above 50%, the result is not driven by a handful of lucky trades, but the long losing period shows the edge was inconsistent. The entry timing is strong, beating 86% of random entries, meaning the entry signal itself is carrying the result rather than the exits. However, the consistency figure shows the edge was not steady, as it was profitable in only 3 out of 4 test periods, so the bulk of the gains likely came from one favorable stretch.

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Backtested results, not live trading returns. Fees and slippage included. Not investment advice.