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, out-of-sample, with costs.
Vortex
On the weekly chart, this is the strongest risk-adjusted edge we found for Emerging Markets (EEM) over ~23.2 years — beating buy-and-hold by 0.9% CAGR.
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 | 10.6% | 0.72 | -23.0% | 42.2% | 45 | 0.9% |
| 2 | KAMA 10/30 Cross ✓ | Daily | 9.5% | 0.68 | -28.6% | 46.9% | 64 | -0.5% |
| 3 | Random Walk Index ✓ | Weekly | 9.8% | 0.67 | -31.5% | 44.2% | 43 | 0.1% |
| 4 | Random Walk Index ✓ | Weekly | 9.8% | 0.67 | -31.5% | 44.2% | 43 | 0.1% |
| 5 | Ease of Movement ✓ | Weekly | 9.3% | 0.63 | -32.0% | 50.0% | 48 | -0.4% |
| 6 | ADXR ✓ | Weekly | 7.4% | 0.63 | -25.5% | 53.8% | 26 | -2.3% |
| 7 | TRIX (21) ✓ | Daily | 9.0% | 0.61 | -31.2% | 53.5% | 43 | -0.9% |
| 8 | Cutler's RSI ✓ | Weekly | 8.6% | 0.61 | -32.3% | 54.1% | 61 | -1.1% |
| 9 | ROC (14) ✓ | Weekly | 8.6% | 0.61 | -32.3% | 54.1% | 61 | -1.1% |
| 10 | CMO (14) ✓ | Weekly | 8.6% | 0.61 | -32.3% | 54.1% | 61 | -1.1% |
| 11 | EMA 20/50 Cross ✓ | Daily | 8.5% | 0.59 | -29.2% | 47.6% | 42 | -1.4% |
| 12 | Ehlers Decycler ✓ | Weekly | 8.2% | 0.59 | -41.5% | 48.6% | 74 | -1.6% |
| 13 | DMI Direction ✓ | Weekly | 7.7% | 0.59 | -30.1% | 51.0% | 51 | -2.0% |
| 14 | Coral Trend ✓ | Weekly | 8.4% | 0.59 | -33.9% | 53.8% | 26 | -1.3% |
✓ = held up out-of-sample. Hypothetical, costs included. See methodology.
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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