The best indicator for Emerging Markets (EEM)
We backtested 382 indicators across daily, weekly and hourly charts on real Emerging Markets (EEM) history. Here's what actually worked — risk-adjusted over the full backtest, with costs, and checked out-of-sample.
Where Emerging Markets (EEM) stands
Computed from our own daily OHLCV history, not quoted from a third party. Moving averages use closing prices; "52-week" is the last 252 trading sessions.
Vortex
On the weekly chart, this is the strongest risk-adjusted edge we found for Emerging Markets (EEM) over ~23.6 years — beating buy-and-hold by 1.0% CAGR.
Emerging Markets (EEM) on the weekly chart
The timeframe our backtest found best for this asset. The chart is live market data; the results above are hypothetical and historical.
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Best multi-indicator combo
Going long only when all 2 agree was the strongest confluence setup we found for Emerging Markets (EEM) — trailing buy-and-hold by 7.0% CAGR, out-of-sample. Fewer, higher-conviction trades than any single indicator.
The winner on each chart
Every indicator, ranked
Ranked by Sharpe (risk-adjusted return). Hypothetical, fees included.
| # | Indicator | TF | CAGR | Sharpe | Max DD | Win | Trades | vs B&H |
|---|---|---|---|---|---|---|---|---|
| 1 | Vortex ✓ | Weekly | 10.7% | 0.73 | -21.4% | 44.7% | 47 | 1.0% |
| 2 | Random Walk Index ✓ | Weekly | 10.0% | 0.68 | -31.5% | 44.4% | 45 | 0.2% |
| 3 | Random Walk Index ✓ | Weekly | 10.0% | 0.68 | -31.5% | 44.4% | 45 | 0.2% |
| 4 | KAMA 10/30 Cross ✓ | Daily | 9.1% | 0.65 | -28.6% | 47.7% | 65 | -0.9% |
| 5 | Ease of Movement ✓ | Weekly | 8.9% | 0.62 | -32.0% | 51.0% | 51 | -0.9% |
| 6 | ADXR ✓ | Weekly | 7.4% | 0.62 | -24.9% | 51.6% | 31 | -2.4% |
| 7 | Cutler's RSI ✓ | Weekly | 8.8% | 0.62 | -32.0% | 54.1% | 61 | -0.9% |
| 8 | ROC (14) ✓ | Weekly | 8.8% | 0.62 | -32.0% | 54.1% | 61 | -0.9% |
| 9 | CMO (14) ✓ | Weekly | 8.8% | 0.62 | -32.0% | 54.1% | 61 | -0.9% |
| 10 | J_TPO ✓ | Weekly | 7.9% | 0.61 | -23.5% | 50.0% | 58 | -1.8% |
| 11 | McGinley Dynamic ✓ | Weekly | 9.4% | 0.6 | -44.9% | 46.0% | 50 | -0.4% |
| 12 | TRIX (21) ✓ | Daily | 8.8% | 0.59 | -31.2% | 52.3% | 44 | -1.2% |
| 13 | Ehlers Decycler ✓ | Weekly | 8.2% | 0.59 | -40.7% | 48.0% | 75 | -1.5% |
| 14 | DEMA 30 Trend ✓ | Weekly | 7.1% | 0.59 | -23.4% | 49.4% | 81 | -2.6% |
✓ = held up out-of-sample. Hypothetical, costs included. See methodology.
What it would take to beat buy & hold on Emerging Markets (EEM)
8 of 639 tested setups beat buy-and-hold on Emerging Markets (EEM) outright. Another 402 could get there with leverage they would survive — but 143 would be liquidated by their own drawdown before they caught it.
| Indicator | Beats B&H unlevered | Leverage needed | Leverage survived |
|---|---|---|---|
| ALMA 10/30 Cross | 1 | 1.08× | 4.42× |
| Inverse Fisher RSI | 1 | 1.27× | 4.67× |
| Instantaneous Trendline | 1 | 1.56× | 5.27× |
| Chandelier Exit | 1 | 2.15× | 3.03× |
| Parabolic SAR | 1 | none needed | 3.34× |
| KAMA 10/30 Cross | 1 | none needed | 4.98× |
Out-of-sample, costs included. A setup is only listed if the leverage it needs is less than the leverage its own worst drawdown survives — when it isn't, no amount of leverage gets there. Volatility drag isn't modelled, so these are the optimistic case. Every indicator, ranked this way
For Emerging Markets (EEM), Vortex on the weekly timeframe gave the best balance of return and risk in our test. It beat buy-and-hold — but remember: this is a hypothetical backtest of a standard rule, not a recommendation. Markets change. See the methodology and disclaimer.
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