XLK trading strategies, backtested
Technology Select Sector SPDR Fund — S&P 500 technology stocks — the sector behind most recent bull runs. Every DeployQuant template run on XLK over 5.5 years of minute data, same engine, same window, sorted by return.
| Strategy | CAGR | max DD | Sharpe | trades | win rate | final value |
|---|---|---|---|---|---|---|
| Weekly Entry + 7% Target | 18.8% | −18.2% | 0.92 | 121 | 35% | $25,909 |
| First-to-Last Day of Month | 18.1% | −32.1% | 0.83 | 67 | 63% | $25,053 |
| 200-Day SMA Regime Filter | 14.8% | −19.6% | 0.89 | 11 | 36% | $21,485 |
| Golden Cross (SMA 50/200) | 13.3% | −19.5% | 0.79 | 2 | 50% | $19,957 |
| RSI(2) Dip Snapback | 12.4% | −17.3% | 0.79 | 150 | 66% | $19,052 |
| 20-Day Momentum + Trailing Stop | 12.1% | −26.1% | 0.81 | 9 | 56% | $18,785 |
| SMA-200 Trend + 15% Trailing Stop | 10.7% | −32.4% | 0.63 | 6 | 50% | $17,545 |
| EMA 12/26 Trend | 9.0% | −25.5% | 0.60 | 23 | 35% | $16,137 |
| SMA 10/50 Trend | 8.8% | −25.7% | 0.59 | 18 | 44% | $15,927 |
| RSI(14) Mean Reversion | 7.5% | −26.0% | 0.51 | 15 | 67% | $14,945 |
| Drawdown Dip Buyer + 8% Target | 5.7% | −27.9% | 0.39 | 5 | 100% | $13,601 |
| 3-Month Momentum Switch | 5.5% | −30.9% | 0.42 | 16 | 31% | $13,451 |
| Buy & hold XLK | 20.2% | −33.0% | 0.89 | — | — | $27,625 |
Build it from blocks (or type it in English), backtest it on 5.5 years of minute data in seconds, tweak any parameter, then paper trade it on live data. No card, no broker needed to start.
Frequently asked questions
What was the best strategy for XLK?
Of the 12 templates tested on XLK over 2021-01-04–2026-07-17, the strongest by CAGR was weekly 7% target at 18.8% (max drawdown 18.2%), versus 20.2% for buy-and-hold. Best-in-hindsight is not a forecast — check drawdowns and trade counts before drawing conclusions.
Did any strategy beat buying and holding XLK?
0 of 12 templates beat XLK buy-and-hold (20.2% CAGR) on this window; 12 of 12 had a shallower maximum drawdown than holding (33.0%).
Other sector etfs
Backtests are hypothetical, computed by DeployQuant's engine on minute-resolution consolidated US market data (2021-01-04 to 2026-07-17, $10,000 starting capital, no margin, fees and slippage not modeled) and do not guarantee future results. Nothing on this page is investment advice. Live trading involves risk of loss.