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Trend · QQQ · 1D

Does MACD zero-line cross actually work on QQQ? We tested it

We ran MACD zero-line cross on QQQ through walk-forward testing and a 100-run random-entry gauntlet. 4 of 4 unseen periods positive. Beat 83 of 100 random-entry runs.

WALK-FORWARD VERIFIED EDGESTACKER ENGINE
Return +137.7%
Win rate 48.0%
Max drawdown −17.3%
Trades 25
Sharpe 0.92
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 +24.2% 1.11 4
2 Jul 2020 to Jul 2022 +7.6% 0.44 6
3 Jul 2022 to Jul 2024 +46.2% 2.06 5
4 Jul 2024 to Jul 2026 +6.4% 0.37 6
4 of 4 periods positive. Mean Sharpe 0.99. Worst period +6.4%.
Market matrix
Edge held on 3 of 28

The same rules, tested on 28 tickers. Edge held on 3. We ship it on those.

QQQ SHIPPED
83/100 EDGE
GLD
99/100 EDGE
MU
91/100 EDGE
Show every ticker we tested
NFLX
88/100 NONE
MSFT
87/100 NONE
SMCI
86/100 NONE
JPM
74/100 NONE
MARA
72/100 NONE
SPY
57/100 NONE
UBER
53/100 NONE
AAPL
47/100 NONE
AMZN
46/100 NONE
COIN
45/100 NONE
AVGO
44/100 NONE
AMD
43/100 NONE
NVDA
36/100 NONE
MSTR
29/100 NONE
TSLA
27/100 NONE
GOOGL
21/100 NONE
IWM
10/100 NONE
META
10/100 NONE
DIA
3/100 NONE
BA
1/100 NONE
HOOD
too new TOO NEW
PLTR
too new TOO NEW
RIOT
too new TOO NEW
XOM
too new TOO NEW
SOFI
too new TOO NEW
The rules
Entrywhen MACD line(12/26/9) of close crosses above 0 AND close is above SMA of close over 200 bars
Exitwhen a signal fires (MACD line(12/26/9) of close crosses below 0)
Sizing**Position size:** no fixed stop distance to size against. This strategy exits on signal only. Size by conviction, or add a hard stop for a size-by-risk number.
Diagnosis

This strategy made money overall, turning a 137.73% total return on QQQ with a reasonable Sharpe ratio of 0.92, meaning the ride was moderately steady but not perfectly smooth. The worst pain came during a 17.35% drawdown from September to November 2020, which is a significant but not catastrophic loss for a swing trading approach. With a 48% win rate and only 25 trades, the result is not driven by just a few lucky trades, as the average trade returned a solid 3.87%. The entry-timing edge is strong, with real entries beating 83% of random entry runs, so the entry signal itself is carrying the result rather than the exits doing the heavy lifting. The consistency figure shows the edge held up across all four walk-forward test periods, meaning the profit did not come from one lucky stretch but appeared steadily over time.

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