LearnStrategies › SMA-200 Trend + 15% Trailing Stop

SMA-200 Trend + 15% Trailing Stop

Enter when price is above the 200-day average; exit only when a 15% trailing stop is hit.

Across 59 ETFs (2021-01-04 → 2026-07-17): median CAGR 3.2%, median max drawdown 30.0%, and it beat buy-and-hold of the same ETF in 21 of 59 cases (36%). Same rules, same engine, every ETF.

The rules

  1. WHEN the market opens · IF not invested AND yesterday's close > SMA(200) · THEN buy with 98% of the sleeve
  2. WHILE invested · a managed trailing stop follows 15% below the position's high-water mark

A hybrid of the regime filter and the trailing stop: the 200-day average decides when to get in, but the exit belongs entirely to a 15% trail from the position's high-water mark. That asymmetry lets winners run far beyond the point where a crossover would have exited, at the cost of giving back 15% from every peak.

Good for: long trends with tolerable pullbacks; the 15% trail is wide enough to survive normal corrections.
Watch out: a 15% giveback from every peak is the tuition this strategy always pays; on choppy assets it re-enters above the 200-day repeatedly after each stop-out.

Run trend + trailing stop yourself — free →

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Results on every ETF

ETFCAGRbuy & holdmax DDSharpetradeswin rate
TQQQ 22.1% 22.3% −37.5% 0.7028 46%
SOXL 19.5% 30.2% −69.7% 0.6088 36%
CLSE 19.3% 20.1% −14.5% 1.621 100%
SOXX 19.1% 29.6% −36.4% 0.7513 62%
QLD 15.5% 21.6% −40.2% 0.6617 47%
IAU 15.2% 13.6% −24.7% 0.954 25%
ROM 13.7% 26.1% −41.3% 0.5521 38%
XLK 10.7% 20.2% −32.4% 0.636 50%
SSO 10.7% 21.5% −39.0% 0.608 50%
QQQM 10.3% 15.8% −26.8% 0.704 50%
QQQ 10.3% 15.8% −26.7% 0.704 50%
SPUU 10.3% 22.0% −39.7% 0.588 50%
IOO 10.1% 16.4% −19.7% 0.832 50%
TBF 10.0% 11.0% −16.6% 0.762 100%
VOOG 9.7% 14.9% −28.8% 0.694 50%
SOXS 9.2% −30.5% −26.8% 0.477 57%
VOX 8.6% 9.2% −22.1% 0.673 33%
EEM 8.4% 5.6% −16.3% 0.631 100%
TECL 7.8% 31.9% −55.8% 0.4045 44%
QQQE 6.3% 9.4% −22.1% 0.522 50%
VTV 6.2% 13.9% −24.2% 0.572 50%
VV 5.7% 13.9% −29.6% 0.523 33%
VOO 5.2% 14.3% −31.3% 0.473 33%
SPY 5.0% 14.4% −31.2% 0.463 33%
USDU 4.6% 5.1% −8.9% 0.770
VOOV 3.8% 13.2% −26.4% 0.383 33%
RINF 3.8% 6.6% −13.3% 0.390
CTA 3.7% 7.2% −20.3% 0.332 50%
XLF 3.6% 14.1% −28.0% 0.334 50%
SGOV 3.2% 3.2% −0.0% 13.620
XLP 2.8% 7.0% −22.0% 0.292 0%
QAI 2.6% 3.9% −15.9% 0.451 0%
FXE 2.5% −0.7% −7.9% 0.470
UDN 2.1% −1.0% −8.3% 0.420
IWM 2.0% 8.5% −35.6% 0.205 20%
IEI 1.9% 0.0% −5.2% 0.560
ALTY 0.8% 8.7% −30.0% 0.142 0%
IGIB 0.7% 0.9% −17.9% 0.161 0%
KMLM 0.1% 6.0% −27.0% 0.073 33%
BND −0.6% −0.3% −18.7% -0.091 0%
AGG −0.6% −0.3% −18.9% -0.091 0%
EEV −0.9% −14.5% −54.6% 0.1011 36%
IEF −1.5% −1.6% −21.5% -0.211 0%
XLY −3.8% 7.3% −39.6% -0.157 43%
PSQ −5.7% −13.2% −38.1% -0.288 38%
TLT −6.2% −7.3% −37.8% -0.543 0%
REW −7.4% −33.6% −50.2% -0.0820 20%
UST −7.6% −7.3% −39.8% -0.664 0%
SPDN −7.8% −9.7% −45.3% -0.557 43%
QID −7.9% −28.9% −46.0% -0.1318 28%
SH −8.0% −9.9% −45.4% -0.567 29%
FAS −8.1% 22.9% −68.7% -0.0826 38%
TECS −8.9% −21.8% −46.3% -0.1329 28%
VXZ −9.9% −13.9% −47.3% -0.4310 10%
VIXM −10.6% −14.9% −47.4% -0.4410 10%
SDS −11.2% −22.1% −56.2% -0.4015 27%
SQQQ −12.1% −30.9% −70.1% -0.1632 41%
TMF −13.4% −30.7% −62.5% -0.649 22%
UVXY −23.3% −38.0% −77.0% -0.7024 21%

Frequently asked questions

What is the trend + trailing stop strategy?

Enter when price is above the 200-day average; exit only when a 15% trailing stop is hit. A hybrid of the regime filter and the trailing stop: the 200-day average decides when to get in, but the exit belongs entirely to a 15% trail from the position's high-water mark. That asymmetry lets winners run far beyond the point where a crossover would have exited, at the cost of giving back 15% from every peak.

Does trend + trailing stop beat buy-and-hold?

Across 59 ETFs backtested 2021-01-04–2026-07-17, it beat same-ETF buy-and-hold on 21 of 59 (36%). Median CAGR was 3.2% with a median max drawdown of 30.0%. Per-ETF results vary widely — see the table.

Why 15% rather than 10%?

Wider trails survive routine corrections in exchange for a bigger giveback at the end. Both numbers are one-field edits in DeployQuant — backtest both and compare.

Compare with other strategies

trend + trailing stop vs RSI mean reversionhead-to-head on 59 ETFstrend + trailing stop vs RSI(2) snapbackhead-to-head on 59 ETFstrend + trailing stop vs golden crosshead-to-head on 59 ETFstrend + trailing stop vs SMA 10/50 trendhead-to-head on 59 ETFstrend + trailing stop vs EMA 12/26 trendhead-to-head on 59 ETFstrend + trailing stop vs 200-day regime filterhead-to-head on 59 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.