B1 gap test: live rules vs 25% K-D gap with 1-day grace (ITA, SOXX, TQQQ) 2026-11-13

B1 gap test: live rules vs 25% K/D gap with a 1-day grace (ITA, SOXX, TQQQ), 12 Nov 2026 close

Each ETF below is shown twice so the two rule sets can be checked trade by trade. Yahoo Finance daily bars from 4 Jan 2021 through the 12 Nov 2026 close, each ETF’s own price-based Stage on every bar, Stochastic 14,3,5, Bollinger 18,2, one position at a time, fills at the signal-day close, no costs. Backtest only: nothing was bought or sold.

  • Scenario A, the live rules (set E + P1). B1 = %K crosses above %D with both under 20.
  • Scenario B: the same, except that B1 also needs %K at least 25% above %D on the cross day. If the gap is smaller, the B1 is blocked, but it may still buy on the next close if %K is still above %D, the gap now reaches 25% and %D is still under 20 (a “late B1”). All other rules are identical.

Across all ETFs (48 full-history ETFs, full period): median excess over buy & hold +1.7% with Scenario B vs +0.3% with the live rules; 25 ETFs beat buy & hold vs 24; 23 ETFs better and 21 worse than live (median change +0.00 points). But it is worse in 4 of the 6 single years (better in 1), and worse over the last 1 year (3 better / 8 worse) and the last 6 months (2 / 5). It is fragile: with a 15% or 20% gap instead of 25% the median excess falls to -0.8% and -0.8%. A 3-point gap instead of 25% gives the same result on these three ETFs (cross-ETF median excess +1.7%, 23 better / 21 worse). Not adopted; shown here for checking.

  • ITA: Scenario A +91.2%, Scenario B +115.9%, buy & hold +136.9% (full period to 12 Nov 2026).
  • SOXX: Scenario A +342.8%, Scenario B +343.6%, buy & hold +269.4% (full period to 12 Nov 2026).
  • TQQQ: Scenario A +281.3%, Scenario B +233.3%, buy & hold +175.5% (full period to 12 Nov 2026).

Not advice. Highlighted rows (yellow) = the most interesting case per ETF (the biggest difference between what A made on that B1 and what B did instead).

ITA (iShares U.S. Aerospace & Defense ETF)

Result to the 12 Nov 2026 close: Scenario A +91.2%, Scenario B +115.9%, ITA buy & hold +136.9% over the full period. B blocked 4 B1 crosses on ITA; 2 of them were bought one close later as a late B1. In Scenario A those crosses were 1 closed winner, 2 closed losers, 1 still open. Most interesting case (27 Aug 2026, highlighted): the cross had a gap of 19% (1.5 pts); A bought B1 at 78.09 and made -8.1% (still open); B bought B2 embed-low end on 9 Oct 2026 at 68.88 and made +4.1% (still open). Check against the cross-ETF backtest (to the 9 Nov 2026 close): A +91.0%, B +115.7%; this build +91.0% and +115.7%.

Summary: Scenario A vs Scenario B vs ITA buy & hold (to the 12 Nov 2026 close)

PeriodScenario A: live rulesScenario B: B1 gap 25% + 1-day graceITA buy & hold
Full period (from 4 Jan 2021)+91.2%+115.9%+136.9%
2021+5.8%+5.0%+13.2%
2022+6.7%+7.2%+7.8%
2023+5.4%+5.4%+13.6%
2024+9.6%+9.6%+15.9%
2025+45.9%+45.9%+48.2%
2026 (to 12 Nov 2026)-1.3%+11.9%-3.1%
Last 1 year (from 12 Nov 2025)+5.9%+20.0%+2.6%
Last 6 months (from 12 May 2026)-7.8%+4.5%-4.5%
Worst drop, full period-20.8%-21.1%-20.1%
Trades (closed + open)23 + 123 + 1–
Win rate (closed trades)65% (15 of 23)65% (15 of 23)–

ITA Scenario A: live rules (set E + P1)

Markers:buy (rule written below)sell (reason written above)

ITA (iShares U.S. Aerospace & Defense ETF) daily OHLC from 4 Jan 2021 through the 12 Nov 2026 close from Yahoo Finance (indicators warmed up on bars from Nov 2019). SMA 50/100/200, Bollinger 18,2 and Stochastic 14,3,5 calculated from these closes; default view = last year, scroll or zoom back for the full history. Test signals, one position at a time, so buys and sells always alternate (rules tested from a flat start on the first valid bar, 4 Jan 2021 where the ETF traded then). BUY (green up triangle, rule written below it) on the first close that meets, in this order: B1 oversold — %K crosses above %D with both under 20; B2 a below-20 embed ends; B3 trend pullback — close above SMA 50 and %K crosses above %D after %K dipped under 50 since the last sell; B4 middle-band reclaim — 2 closes in a row above the 18-day Bollinger middle band after a close at or below it, with %K above %D; B5 re-entry after a sell — close above the highest close of the prior 20 days, above SMA 50, with %K above %D. No buy while %K and %D both stay under 20 for 3+ closes (red band). SELL (orange down triangle, reason written above it) only after a buy, and only on a close below SMA 68 (the 68-day simple average of closes, not drawn): S1 %K crosses below %D with both above 80 (held while both stay above 80 for 3+ closes, green band, per Ira Epstein’s embed rule); S2 either line closes back under 80 after such an embed. If S1 or S2 happens while the close is still at or above SMA 68, the sell waits and S4 fires on the first later close below SMA 68; while the Stage (here the price-based proxy) is Rolling Over or Faded (red background) a waiting sell fires already on the first close below SMA 40 (S5). Rule set chosen on all narrative ETFs together (cross-ETF re-tune and Stage-aware test, 11 Nov 2026), not on this ETF alone. Background colour = ITA’s Stage from the price-based proxy on every bar (the dashboard Stage rules applied to ITA vs SPY prices only; no mention data, so Start, Peak and Faded cannot appear): green Push Up; yellow Recovery Attempt or Basing; orange Pullback; red Rolling Over; grey Unclassified. The same proxy is used in the cross-ETF backtests, so this chart matches them.

ITA Scenario A: all 24 trades

#Buy dateBuy ruleBuy closeSell dateSell ruleSell close% gainDays held
17 Jan 2021B3 trend pullback31.2212 May 2021S4 waited for a close below SMA 6834.08+9.2%125
217 May 2021B3 trend pullback35.3313 Jul 2021S4 waited for a close below SMA 6835.91+1.6%57
328 Jul 2021B4 middle-band reclaim36.2926 Oct 2021S4 waited for a close below SMA 6835.24-2.9%90
42 Nov 2021B1 oversold cross34.8731 Dec 2021S1 overbought cross, close below SMA 6834.26-1.8%59
54 Jan 2022B5 20-day-high re-entry35.4220 Jan 2022S4 waited for a close below SMA 6834.74-1.9%16
68 Feb 2022B4 middle-band reclaim35.0226 Apr 2022S4 waited for a close below SMA 6835.39+1.1%77
74 May 2022B2 embed-low end35.4910 Jun 2022S2 embed-high end, close below SMA 6833.41-5.9%37
821 Jun 2022B1 oversold cross32.191 Sep 2022S4 waited for a close below SMA 6833.52+4.1%72
98 Sep 2022B2 embed-low end33.9519 Jan 2023S4 waited for a close below SMA 6836.14+6.5%133
1024 Jan 2023B3 trend pullback37.4010 Mar 2023S4 waited for a close below SMA 6837.68+0.7%45
1130 Mar 2023B4 middle-band reclaim38.1325 Apr 2023S4 waited for a close below SMA 6838.09-0.1%26
1218 May 2023B4 middle-band reclaim37.7817 Aug 2023S4 waited for a close below SMA 6837.93+0.4%91
1330 Aug 2023B4 middle-band reclaim38.9116 Oct 2023S1 overbought cross, close below SMA 6836.44-6.3%47
141 Nov 2023B3 trend pullback36.8617 Jan 2024S5 Stage Rolling Over: waited sell fired on a close below SMA 4039.77+7.9%77
1519 Jan 2024B2 embed-low end40.5725 Jun 2024S4 waited for a close below SMA 6844.10+8.7%158
1611 Jul 2024B4 middle-band reclaim44.5430 Oct 2024S5 Stage Rolling Over: waited sell fired on a close below SMA 4049.11+10.3%111
176 Nov 2024B2 embed-low end50.3921 Feb 2025S4 waited for a close below SMA 6849.78-1.2%107
1826 Feb 2025B1 oversold cross50.383 Apr 2025S4 waited for a close below SMA 6849.26-2.2%36
1915 Apr 2025B4 middle-band reclaim50.1013 Nov 2025S4 waited for a close below SMA 6868.35+36.4%212
2025 Nov 2025B2 embed-low end67.4719 Mar 2026S4 waited for a close below SMA 6875.77+12.3%114
211 Apr 2026B2 embed-low end74.5520 Apr 2026S2 embed-high end, close below SMA 6877.28+3.7%19
226 May 2026B2 embed-low end74.473 Jun 2026S4 waited for a close below SMA 6874.96+0.7%28
2311 Jun 2026B5 20-day-high re-entry78.6821 Aug 2026S4 waited for a close below SMA 6879.11+0.6%71
2427 Aug 2026 most interestingB1 oversold cross78.0912 Nov 2026 openstill held (valued at last close)71.73-8.1%77

ITA Scenario B: B1 needs a 25% K/D gap, with a 1-day grace

Markers:buy (rule written below)sell (reason written above)B1 blocked (gap x%), hollow grey; green buy with a yellow outline = B1 late (gap x%)

ITA (iShares U.S. Aerospace & Defense ETF) daily OHLC from 4 Jan 2021 through the 12 Nov 2026 close from Yahoo Finance (indicators warmed up on bars from Nov 2019). SMA 50/100/200, Bollinger 18,2 and Stochastic 14,3,5 calculated from these closes; default view = last year, scroll or zoom back for the full history. Scenario B change: B1 (oversold cross) needs %K at least 25% above %D on the cross day. If the gap is smaller, the B1 is blocked (hollow grey triangle “B1 blocked (gap x%)”) but may still fire on the next close if %K is still above %D, the gap now reaches 25% and %D is still under 20 (green triangle with a yellow outline, “B1 late (gap x%)”). On a blocked day the other buy rules (B2–B5) are still checked in the usual order; everything else is the same as Scenario A. Test signals, one position at a time, so buys and sells always alternate (rules tested from a flat start on the first valid bar, 4 Jan 2021 where the ETF traded then). BUY (green up triangle, rule written below it) on the first close that meets, in this order: B1 oversold — %K crosses above %D with both under 20; B2 a below-20 embed ends; B3 trend pullback — close above SMA 50 and %K crosses above %D after %K dipped under 50 since the last sell; B4 middle-band reclaim — 2 closes in a row above the 18-day Bollinger middle band after a close at or below it, with %K above %D; B5 re-entry after a sell — close above the highest close of the prior 20 days, above SMA 50, with %K above %D. No buy while %K and %D both stay under 20 for 3+ closes (red band). SELL (orange down triangle, reason written above it) only after a buy, and only on a close below SMA 68 (the 68-day simple average of closes, not drawn): S1 %K crosses below %D with both above 80 (held while both stay above 80 for 3+ closes, green band, per Ira Epstein’s embed rule); S2 either line closes back under 80 after such an embed. If S1 or S2 happens while the close is still at or above SMA 68, the sell waits and S4 fires on the first later close below SMA 68; while the Stage (here the price-based proxy) is Rolling Over or Faded (red background) a waiting sell fires already on the first close below SMA 40 (S5). Rule set chosen on all narrative ETFs together (cross-ETF re-tune and Stage-aware test, 11 Nov 2026), not on this ETF alone. Background colour = ITA’s Stage from the price-based proxy on every bar (the dashboard Stage rules applied to ITA vs SPY prices only; no mention data, so Start, Peak and Faded cannot appear): green Push Up; yellow Recovery Attempt or Basing; orange Pullback; red Rolling Over; grey Unclassified. The same proxy is used in the cross-ETF backtests, so this chart matches them.

ITA Scenario B: all 24 trades

#Buy dateBuy ruleBuy closeSell dateSell ruleSell close% gainDays held
17 Jan 2021B3 trend pullback31.2212 May 2021S4 waited for a close below SMA 6834.08+9.2%125
217 May 2021B3 trend pullback35.3313 Jul 2021S4 waited for a close below SMA 6835.91+1.6%57
328 Jul 2021B4 middle-band reclaim36.2926 Oct 2021S4 waited for a close below SMA 6835.24-2.9%90
43 Nov 2021B1 oversold cross (late, gap 60%)35.1531 Dec 2021S1 overbought cross, close below SMA 6834.26-2.5%58
54 Jan 2022B5 20-day-high re-entry35.4220 Jan 2022S4 waited for a close below SMA 6834.74-1.9%16
68 Feb 2022B4 middle-band reclaim35.0226 Apr 2022S4 waited for a close below SMA 6835.39+1.1%77
74 May 2022B2 embed-low end35.4910 Jun 2022S2 embed-high end, close below SMA 6833.41-5.9%37
822 Jun 2022B1 oversold cross (late, gap 67%)32.051 Sep 2022S4 waited for a close below SMA 6833.52+4.6%71
98 Sep 2022B2 embed-low end33.9519 Jan 2023S4 waited for a close below SMA 6836.14+6.5%133
1024 Jan 2023B3 trend pullback37.4010 Mar 2023S4 waited for a close below SMA 6837.68+0.7%45
1130 Mar 2023B4 middle-band reclaim38.1325 Apr 2023S4 waited for a close below SMA 6838.09-0.1%26
1218 May 2023B4 middle-band reclaim37.7817 Aug 2023S4 waited for a close below SMA 6837.93+0.4%91
1330 Aug 2023B4 middle-band reclaim38.9116 Oct 2023S1 overbought cross, close below SMA 6836.44-6.3%47
141 Nov 2023B3 trend pullback36.8617 Jan 2024S5 Stage Rolling Over: waited sell fired on a close below SMA 4039.77+7.9%77
1519 Jan 2024B2 embed-low end40.5725 Jun 2024S4 waited for a close below SMA 6844.10+8.7%158
1611 Jul 2024B4 middle-band reclaim44.5430 Oct 2024S5 Stage Rolling Over: waited sell fired on a close below SMA 4049.11+10.3%111
176 Nov 2024B2 embed-low end50.3921 Feb 2025S4 waited for a close below SMA 6849.78-1.2%107
1826 Feb 2025B3 trend pullback50.383 Apr 2025S4 waited for a close below SMA 6849.26-2.2%36
1915 Apr 2025B4 middle-band reclaim50.1013 Nov 2025S4 waited for a close below SMA 6868.35+36.4%212
2025 Nov 2025B2 embed-low end67.4719 Mar 2026S4 waited for a close below SMA 6875.77+12.3%114
211 Apr 2026B2 embed-low end74.5520 Apr 2026S2 embed-high end, close below SMA 6877.28+3.7%19
226 May 2026B2 embed-low end74.473 Jun 2026S4 waited for a close below SMA 6874.96+0.7%28
2311 Jun 2026B5 20-day-high re-entry78.6821 Aug 2026S4 waited for a close below SMA 6879.11+0.6%71
249 Oct 2026 most interestingB2 embed-low end68.8812 Nov 2026 openstill held (valued at last close)71.73+4.1%34

Every B1 cross that Scenario B blocked or delayed (ITA)

#Cross dateClose%K%DGap %Gap ptsWhat Scenario A madeWhat Scenario B did instead
12 Nov 202134.8719.316.815%2.5-1.8% (B1 here, sold 31 Dec 2021 at 34.26, S1 overbought cross, close below SMA 68; 59 days)late B1 next close 3 Nov 2021 at 35.15 (gap now 60%): -2.5% (sold 31 Dec 2021)
221 Jun 202232.1914.712.220%2.5+4.1% (B1 here, sold 1 Sep 2022 at 33.52, S4 waited for a close below SMA 68; 72 days)late B1 next close 22 Jun 2022 at 32.05 (gap now 67%): +4.6% (sold 1 Sep 2022)
326 Feb 202550.3819.919.62%0.3-2.2% (B1 here, sold 3 Apr 2025 at 49.26, S4 waited for a close below SMA 68; 36 days)skipped it and stayed in cash; its next buy, 15 Apr 2025, B4 middle-band reclaim at 50.10: +36.4% (sold 13 Nov 2025), is the same trade A also made afterwards
427 Aug 2026 most interesting78.099.58.019%1.5-8.1% (B1 here, still open at the 12 Nov 2026 close 71.73; 77 days)9 Oct 2026, B2 embed-low end at 68.88: +4.1% (still open at the 12 Nov 2026 close)

Gap % = %K / %D − 1 on the cross day (needs 25%); gap pts = %K − %D. A delayed (late) B1 buys on the next close only.

SOXX (iShares Semiconductor ETF)

Result to the 12 Nov 2026 close: Scenario A +342.8%, Scenario B +343.6%, SOXX buy & hold +269.4% over the full period. B blocked 2 B1 crosses on SOXX; 1 of them were bought one close later as a late B1. In Scenario A those crosses were 1 closed winner, 1 closed loser. Most interesting case (4 Mar 2025, highlighted): the cross had a gap of 6% (0.7 pts); A bought B1 at 67.42 and made -9.2%; B bought B2 embed-low end on 14 Mar 2025 at 67.04 and made -8.7%. Check against the cross-ETF backtest (to the 9 Nov 2026 close): A +319.3%, B +320.0%; this build +319.3% and +320.0%.

Summary: Scenario A vs Scenario B vs SOXX buy & hold (to the 12 Nov 2026 close)

PeriodScenario A: live rulesScenario B: B1 gap 25% + 1-day graceSOXX buy & hold
Full period (from 4 Jan 2021)+342.8%+343.6%+269.4%
2021+30.2%+29.7%+43.6%
2022-9.8%-9.8%-37.1%
2023+68.2%+68.2%+67.2%
2024+24.3%+24.3%+16.4%
2025+26.7%+27.4%+38.9%
2026 (to 12 Nov 2026)+38.2%+38.2%+48.2%
Last 1 year (from 12 Nov 2025)+28.9%+28.9%+55.2%
Last 6 months (from 12 May 2026)-10.4%-10.4%-9.9%
Worst drop, full period-39.9%-39.9%-46.2%
Trades (closed + open)23 + 123 + 1–
Win rate (closed trades)70% (16 of 23)70% (16 of 23)–

SOXX Scenario A: live rules (set E + P1)

Markers:buy (rule written below)sell (reason written above)

SOXX (iShares Semiconductor ETF) daily OHLC from 4 Jan 2021 through the 12 Nov 2026 close from Yahoo Finance (indicators warmed up on bars from Nov 2019). SMA 50/100/200, Bollinger 18,2 and Stochastic 14,3,5 calculated from these closes; default view = last year, scroll or zoom back for the full history. Test signals, one position at a time, so buys and sells always alternate (rules tested from a flat start on the first valid bar, 4 Jan 2021 where the ETF traded then). BUY (green up triangle, rule written below it) on the first close that meets, in this order: B1 oversold — %K crosses above %D with both under 20; B2 a below-20 embed ends; B3 trend pullback — close above SMA 50 and %K crosses above %D after %K dipped under 50 since the last sell; B4 middle-band reclaim — 2 closes in a row above the 18-day Bollinger middle band after a close at or below it, with %K above %D; B5 re-entry after a sell — close above the highest close of the prior 20 days, above SMA 50, with %K above %D. No buy while %K and %D both stay under 20 for 3+ closes (red band). SELL (orange down triangle, reason written above it) only after a buy, and only on a close below SMA 68 (the 68-day simple average of closes, not drawn): S1 %K crosses below %D with both above 80 (held while both stay above 80 for 3+ closes, green band, per Ira Epstein’s embed rule); S2 either line closes back under 80 after such an embed. If S1 or S2 happens while the close is still at or above SMA 68, the sell waits and S4 fires on the first later close below SMA 68; while the Stage (here the price-based proxy) is Rolling Over or Faded (red background) a waiting sell fires already on the first close below SMA 40 (S5). Rule set chosen on all narrative ETFs together (cross-ETF re-tune and Stage-aware test, 11 Nov 2026), not on this ETF alone. Background colour = SOXX’s Stage from the price-based proxy on every bar (the dashboard Stage rules applied to SOXX vs SPY prices only; no mention data, so Start, Peak and Faded cannot appear): green Push Up; yellow Recovery Attempt or Basing; orange Pullback; red Rolling Over; grey Unclassified. The same proxy is used in the cross-ETF backtests, so this chart matches them.

SOXX Scenario A: all 24 trades

#Buy dateBuy ruleBuy closeSell dateSell ruleSell close% gainDays held
12 Feb 2021B3 trend pullback45.943 May 2021S4 waited for a close below SMA 6846.40+1.0%90
221 May 2021B4 middle-band reclaim46.0016 Jul 2021S4 waited for a close below SMA 6847.42+3.1%56
321 Jul 2021B3 trend pullback49.4928 Sep 2021S4 waited for a close below SMA 6850.36+1.8%69
45 Oct 2021B1 oversold cross49.0310 Jan 2022S5 Stage Rolling Over: waited sell fired on a close below SMA 4057.94+18.2%97
525 Jan 2022B1 oversold cross51.1324 Mar 2022S1 overbought cross, close below SMA 6854.05+5.7%58
628 Mar 2022B5 20-day-high re-entry54.341 Apr 2022S2 embed-high end, close below SMA 6851.57-5.1%4
729 Apr 2022B2 embed-low end44.533 Jun 2022S1 overbought cross, close below SMA 6846.78+5.0%35
824 Jun 2022B2 embed-low end41.4326 Jul 2022S2 embed-high end, close below SMA 6842.43+2.4%32
928 Jul 2022B5 20-day-high re-entry44.9126 Aug 2022S4 waited for a close below SMA 6842.87-4.6%29
109 Sep 2022B2 embed-low end41.7323 Dec 2022S5 Stage Rolling Over: waited sell fired on a close below SMA 4038.76-7.1%105
114 Jan 2023B2 embed-low end39.2720 Apr 2023S5 Stage Rolling Over: waited sell fired on a close below SMA 4046.65+18.8%106
1228 Apr 2023B2 embed-low end45.7910 Aug 2023S5 Stage Rolling Over: waited sell fired on a close below SMA 4055.42+21.0%104
1315 Aug 2023B1 oversold cross54.7117 Apr 2024S4 waited for a close below SMA 6870.12+28.2%246
1424 Apr 2024B2 embed-low end69.5124 Jul 2024S4 waited for a close below SMA 6876.56+10.1%91
158 Aug 2024B2 embed-low end71.0128 Aug 2024S2 embed-high end, close below SMA 6875.30+6.0%20
1620 Sep 2024B4 middle-band reclaim74.561 Oct 2024S2 embed-high end, close below SMA 6874.71+0.2%11
177 Oct 2024B3 trend pullback76.8224 Feb 2025S4 waited for a close below SMA 6872.91-5.1%140
184 Mar 2025 most interestingB1 oversold cross67.421 May 2025S1 overbought cross, close below SMA 6861.20-9.2%58
199 May 2025B5 20-day-high re-entry64.6519 Nov 2025S5 Stage Rolling Over: waited sell fired on a close below SMA 4093.87+45.2%194
2028 Nov 2025B4 middle-band reclaim98.9117 Dec 2025S4 waited for a close below SMA 6895.08-3.9%19
2122 Dec 2025B3 trend pullback101.286 Mar 2026S4 waited for a close below SMA 68107.84+6.5%74
2225 Mar 2026B4 middle-band reclaim115.0816 Jul 2026S5 Stage Rolling Over: waited sell fired on a close below SMA 40176.83+53.7%113
235 Aug 2026B4 middle-band reclaim176.9014 Oct 2026S4 waited for a close below SMA 68173.14-2.1%70
2428 Oct 2026B2 embed-low end173.9812 Nov 2026 openstill held (valued at last close)154.99-10.9%15

SOXX Scenario B: B1 needs a 25% K/D gap, with a 1-day grace

Markers:buy (rule written below)sell (reason written above)B1 blocked (gap x%), hollow grey; green buy with a yellow outline = B1 late (gap x%)

SOXX (iShares Semiconductor ETF) daily OHLC from 4 Jan 2021 through the 12 Nov 2026 close from Yahoo Finance (indicators warmed up on bars from Nov 2019). SMA 50/100/200, Bollinger 18,2 and Stochastic 14,3,5 calculated from these closes; default view = last year, scroll or zoom back for the full history. Scenario B change: B1 (oversold cross) needs %K at least 25% above %D on the cross day. If the gap is smaller, the B1 is blocked (hollow grey triangle “B1 blocked (gap x%)”) but may still fire on the next close if %K is still above %D, the gap now reaches 25% and %D is still under 20 (green triangle with a yellow outline, “B1 late (gap x%)”). On a blocked day the other buy rules (B2–B5) are still checked in the usual order; everything else is the same as Scenario A. Test signals, one position at a time, so buys and sells always alternate (rules tested from a flat start on the first valid bar, 4 Jan 2021 where the ETF traded then). BUY (green up triangle, rule written below it) on the first close that meets, in this order: B1 oversold — %K crosses above %D with both under 20; B2 a below-20 embed ends; B3 trend pullback — close above SMA 50 and %K crosses above %D after %K dipped under 50 since the last sell; B4 middle-band reclaim — 2 closes in a row above the 18-day Bollinger middle band after a close at or below it, with %K above %D; B5 re-entry after a sell — close above the highest close of the prior 20 days, above SMA 50, with %K above %D. No buy while %K and %D both stay under 20 for 3+ closes (red band). SELL (orange down triangle, reason written above it) only after a buy, and only on a close below SMA 68 (the 68-day simple average of closes, not drawn): S1 %K crosses below %D with both above 80 (held while both stay above 80 for 3+ closes, green band, per Ira Epstein’s embed rule); S2 either line closes back under 80 after such an embed. If S1 or S2 happens while the close is still at or above SMA 68, the sell waits and S4 fires on the first later close below SMA 68; while the Stage (here the price-based proxy) is Rolling Over or Faded (red background) a waiting sell fires already on the first close below SMA 40 (S5). Rule set chosen on all narrative ETFs together (cross-ETF re-tune and Stage-aware test, 11 Nov 2026), not on this ETF alone. Background colour = SOXX’s Stage from the price-based proxy on every bar (the dashboard Stage rules applied to SOXX vs SPY prices only; no mention data, so Start, Peak and Faded cannot appear): green Push Up; yellow Recovery Attempt or Basing; orange Pullback; red Rolling Over; grey Unclassified. The same proxy is used in the cross-ETF backtests, so this chart matches them.

SOXX Scenario B: all 24 trades

#Buy dateBuy ruleBuy closeSell dateSell ruleSell close% gainDays held
12 Feb 2021B3 trend pullback45.943 May 2021S4 waited for a close below SMA 6846.40+1.0%90
221 May 2021B4 middle-band reclaim46.0016 Jul 2021S4 waited for a close below SMA 6847.42+3.1%56
321 Jul 2021B3 trend pullback49.4928 Sep 2021S4 waited for a close below SMA 6850.36+1.8%69
46 Oct 2021B1 oversold cross (late, gap 51%)49.2210 Jan 2022S5 Stage Rolling Over: waited sell fired on a close below SMA 4057.94+17.7%96
525 Jan 2022B1 oversold cross51.1324 Mar 2022S1 overbought cross, close below SMA 6854.05+5.7%58
628 Mar 2022B5 20-day-high re-entry54.341 Apr 2022S2 embed-high end, close below SMA 6851.57-5.1%4
729 Apr 2022B2 embed-low end44.533 Jun 2022S1 overbought cross, close below SMA 6846.78+5.0%35
824 Jun 2022B2 embed-low end41.4326 Jul 2022S2 embed-high end, close below SMA 6842.43+2.4%32
928 Jul 2022B5 20-day-high re-entry44.9126 Aug 2022S4 waited for a close below SMA 6842.87-4.6%29
109 Sep 2022B2 embed-low end41.7323 Dec 2022S5 Stage Rolling Over: waited sell fired on a close below SMA 4038.76-7.1%105
114 Jan 2023B2 embed-low end39.2720 Apr 2023S5 Stage Rolling Over: waited sell fired on a close below SMA 4046.65+18.8%106
1228 Apr 2023B2 embed-low end45.7910 Aug 2023S5 Stage Rolling Over: waited sell fired on a close below SMA 4055.42+21.0%104
1315 Aug 2023B1 oversold cross54.7117 Apr 2024S4 waited for a close below SMA 6870.12+28.2%246
1424 Apr 2024B2 embed-low end69.5124 Jul 2024S4 waited for a close below SMA 6876.56+10.1%91
158 Aug 2024B2 embed-low end71.0128 Aug 2024S2 embed-high end, close below SMA 6875.30+6.0%20
1620 Sep 2024B4 middle-band reclaim74.561 Oct 2024S2 embed-high end, close below SMA 6874.71+0.2%11
177 Oct 2024B3 trend pullback76.8224 Feb 2025S4 waited for a close below SMA 6872.91-5.1%140
1814 Mar 2025 most interestingB2 embed-low end67.041 May 2025S1 overbought cross, close below SMA 6861.20-8.7%48
199 May 2025B5 20-day-high re-entry64.6519 Nov 2025S5 Stage Rolling Over: waited sell fired on a close below SMA 4093.87+45.2%194
2028 Nov 2025B4 middle-band reclaim98.9117 Dec 2025S4 waited for a close below SMA 6895.08-3.9%19
2122 Dec 2025B3 trend pullback101.286 Mar 2026S4 waited for a close below SMA 68107.84+6.5%74
2225 Mar 2026B4 middle-band reclaim115.0816 Jul 2026S5 Stage Rolling Over: waited sell fired on a close below SMA 40176.83+53.7%113
235 Aug 2026B4 middle-band reclaim176.9014 Oct 2026S4 waited for a close below SMA 68173.14-2.1%70
2428 Oct 2026B2 embed-low end173.9812 Nov 2026 openstill held (valued at last close)154.99-10.9%15

Every B1 cross that Scenario B blocked or delayed (SOXX)

#Cross dateClose%K%DGap %Gap ptsWhat Scenario A madeWhat Scenario B did instead
15 Oct 202149.0313.112.64%0.5+18.2% (B1 here, sold 10 Jan 2022 at 57.94, S5 Stage Rolling Over: waited sell fired on a close below SMA 40; 97 days)late B1 next close 6 Oct 2021 at 49.22 (gap now 51%): +17.7% (sold 10 Jan 2022)
24 Mar 2025 most interesting67.4212.812.16%0.7-9.2% (B1 here, sold 1 May 2025 at 61.20, S1 overbought cross, close below SMA 68; 58 days)14 Mar 2025, B2 embed-low end at 67.04: -8.7% (sold 1 May 2025)

Gap % = %K / %D − 1 on the cross day (needs 25%); gap pts = %K − %D. A delayed (late) B1 buys on the next close only.

TQQQ (ProShares UltraPro QQQ, 3x daily Nasdaq-100)

Result to the 12 Nov 2026 close: Scenario A +281.3%, Scenario B +233.3%, TQQQ buy & hold +175.5% over the full period. B blocked 2 B1 crosses on TQQQ; 1 of them were bought one close later as a late B1. In Scenario A those crosses were 1 closed winner, 1 closed loser. Most interesting case (10 Sep 2024, highlighted): the cross had a gap of 1% (0.1 pts); A bought B1 at 30.35 and made +32.9%; B bought the late B1 on 11 Sep 2024 at 32.28 and made +24.9%. Check against the cross-ETF backtest (to the 11 Nov 2026 close): A +284.9%, B +236.4%; this build +284.9% and +236.4%.

Summary: Scenario A vs Scenario B vs TQQQ buy & hold (to the 12 Nov 2026 close)

PeriodScenario A: live rulesScenario B: B1 gap 25% + 1-day graceTQQQ buy & hold
Full period (from 4 Jan 2021)+281.3%+233.3%+175.5%
2021+49.3%+49.3%+91.3%
2022-58.4%-61.3%-79.8%
2023+174.1%+174.1%+199.8%
2024+111.5%+98.8%+64.4%
2025+12.4%+12.4%+34.1%
2026 (to 12 Nov 2026)+0.1%+0.1%+14.4%
Last 1 year (from 12 Nov 2025)-17.5%-17.5%+7.4%
Last 6 months (from 12 May 2026)-30.1%-30.1%-20.1%
Worst drop, full period-65.0%-67.4%-81.8%
Trades (closed + open)22 + 122 + 1–
Win rate (closed trades)55% (12 of 22)55% (12 of 22)–

TQQQ Scenario A: live rules (set E + P1)

Markers:buy (rule written below)sell (reason written above)

TQQQ (ProShares UltraPro QQQ, 3x daily Nasdaq-100) daily OHLC from 4 Jan 2021 through the 12 Nov 2026 close from Yahoo Finance (indicators warmed up on bars from Nov 2019). SMA 50/100/200, Bollinger 18,2 and Stochastic 14,3,5 calculated from these closes; default view = last year, scroll or zoom back for the full history. TQQQ is a 3x daily-reset leveraged ETF, much more volatile than the narrative ETFs. Test signals, one position at a time, so buys and sells always alternate (rules tested from a flat start on the first valid bar, 4 Jan 2021 where the ETF traded then). BUY (green up triangle, rule written below it) on the first close that meets, in this order: B1 oversold — %K crosses above %D with both under 20; B2 a below-20 embed ends; B3 trend pullback — close above SMA 50 and %K crosses above %D after %K dipped under 50 since the last sell; B4 middle-band reclaim — 2 closes in a row above the 18-day Bollinger middle band after a close at or below it, with %K above %D; B5 re-entry after a sell — close above the highest close of the prior 20 days, above SMA 50, with %K above %D. No buy while %K and %D both stay under 20 for 3+ closes (red band). SELL (orange down triangle, reason written above it) only after a buy, and only on a close below SMA 68 (the 68-day simple average of closes, not drawn): S1 %K crosses below %D with both above 80 (held while both stay above 80 for 3+ closes, green band, per Ira Epstein’s embed rule); S2 either line closes back under 80 after such an embed. If S1 or S2 happens while the close is still at or above SMA 68, the sell waits and S4 fires on the first later close below SMA 68; while the Stage (here the price-based proxy) is Rolling Over or Faded (red background) a waiting sell fires already on the first close below SMA 40 (S5). Rule set chosen on all narrative ETFs together (cross-ETF re-tune and Stage-aware test, 11 Nov 2026), not on this ETF alone. Background colour = TQQQ’s Stage from the price-based proxy on every bar (the dashboard Stage rules applied to TQQQ vs SPY prices only; no mention data, so Start, Peak and Faded cannot appear): green Push Up; yellow Recovery Attempt or Basing; orange Pullback; red Rolling Over; grey Unclassified. The same proxy is used in the cross-ETF backtests, so this chart matches them.

TQQQ Scenario A: all 23 trades

#Buy dateBuy ruleBuy closeSell dateSell ruleSell close% gainDays held
18 Jan 2021B4 middle-band reclaim23.7825 Feb 2021S4 waited for a close below SMA 6821.98-7.6%48
29 Mar 2021B2 embed-low end21.4110 May 2021S4 waited for a close below SMA 6824.00+12.1%62
325 May 2021B4 middle-band reclaim25.4421 Sep 2021S4 waited for a close below SMA 6833.42+31.3%119
423 Sep 2021B3 trend pullback35.3517 Dec 2021S5 Stage Rolling Over: waited sell fired on a close below SMA 4037.70+6.7%85
522 Dec 2021B3 trend pullback40.415 Jan 2022S4 waited for a close below SMA 6837.34-7.6%14
624 Jan 2022B1 oversold cross28.755 Apr 2022S2 embed-high end, close below SMA 6828.74-0.0%71
74 May 2022B2 embed-low end21.076 Jun 2022S1 overbought cross, close below SMA 6816.27-22.8%33
823 Jun 2022B2 embed-low end12.6625 Jul 2022S1 overbought cross, close below SMA 6814.55+14.8%32
928 Jul 2022B5 20-day-high re-entry15.8129 Aug 2022S4 waited for a close below SMA 6814.65-7.3%32
109 Sep 2022B2 embed-low end14.9218 Jan 2023S1 overbought cross, close below SMA 689.73-34.8%131
1126 Jan 2023B5 20-day-high re-entry11.3410 Mar 2023S4 waited for a close below SMA 6810.44-7.9%43
1214 Mar 2023B3 trend pullback11.3910 Aug 2023S5 Stage Rolling Over: waited sell fired on a close below SMA 4019.94+75.1%149
1322 Aug 2023B2 embed-low end19.007 Sep 2023S4 waited for a close below SMA 6820.19+6.3%16
142 Oct 2023B2 embed-low end18.2415 Apr 2024S4 waited for a close below SMA 6827.89+52.9%196
1524 Apr 2024B2 embed-low end26.8524 Jul 2024S4 waited for a close below SMA 6832.72+21.9%91
168 Aug 2024B2 embed-low end29.0328 Aug 2024S2 embed-high end, close below SMA 6833.35+14.9%20
1710 Sep 2024 most interestingB1 oversold cross30.358 Jan 2025S5 Stage Rolling Over: waited sell fired on a close below SMA 4040.34+32.9%120
1821 Jan 2025B4 middle-band reclaim42.2618 Nov 2025S4 waited for a close below SMA 6849.18+16.4%301
1928 Nov 2025B4 middle-band reclaim54.5412 Dec 2025S2 embed-high end, close below SMA 6852.82-3.2%14
2022 Dec 2025B3 trend pullback54.258 Jul 2026S5 Stage Rolling Over: waited sell fired on a close below SMA 4072.72+34.0%198
2110 Jul 2026B3 trend pullback77.0319 Aug 2026S2 embed-high end, close below SMA 6872.06-6.5%40
2227 Aug 2026B3 trend pullback73.3016 Oct 2026S4 waited for a close below SMA 6868.21-6.9%50
2328 Oct 2026B2 embed-low end72.3612 Nov 2026 openstill held (valued at last close)59.88-17.2%15

TQQQ Scenario B: B1 needs a 25% K/D gap, with a 1-day grace

Markers:buy (rule written below)sell (reason written above)B1 blocked (gap x%), hollow grey; green buy with a yellow outline = B1 late (gap x%)

TQQQ (ProShares UltraPro QQQ, 3x daily Nasdaq-100) daily OHLC from 4 Jan 2021 through the 12 Nov 2026 close from Yahoo Finance (indicators warmed up on bars from Nov 2019). SMA 50/100/200, Bollinger 18,2 and Stochastic 14,3,5 calculated from these closes; default view = last year, scroll or zoom back for the full history. TQQQ is a 3x daily-reset leveraged ETF, much more volatile than the narrative ETFs. Scenario B change: B1 (oversold cross) needs %K at least 25% above %D on the cross day. If the gap is smaller, the B1 is blocked (hollow grey triangle “B1 blocked (gap x%)”) but may still fire on the next close if %K is still above %D, the gap now reaches 25% and %D is still under 20 (green triangle with a yellow outline, “B1 late (gap x%)”). On a blocked day the other buy rules (B2–B5) are still checked in the usual order; everything else is the same as Scenario A. Test signals, one position at a time, so buys and sells always alternate (rules tested from a flat start on the first valid bar, 4 Jan 2021 where the ETF traded then). BUY (green up triangle, rule written below it) on the first close that meets, in this order: B1 oversold — %K crosses above %D with both under 20; B2 a below-20 embed ends; B3 trend pullback — close above SMA 50 and %K crosses above %D after %K dipped under 50 since the last sell; B4 middle-band reclaim — 2 closes in a row above the 18-day Bollinger middle band after a close at or below it, with %K above %D; B5 re-entry after a sell — close above the highest close of the prior 20 days, above SMA 50, with %K above %D. No buy while %K and %D both stay under 20 for 3+ closes (red band). SELL (orange down triangle, reason written above it) only after a buy, and only on a close below SMA 68 (the 68-day simple average of closes, not drawn): S1 %K crosses below %D with both above 80 (held while both stay above 80 for 3+ closes, green band, per Ira Epstein’s embed rule); S2 either line closes back under 80 after such an embed. If S1 or S2 happens while the close is still at or above SMA 68, the sell waits and S4 fires on the first later close below SMA 68; while the Stage (here the price-based proxy) is Rolling Over or Faded (red background) a waiting sell fires already on the first close below SMA 40 (S5). Rule set chosen on all narrative ETFs together (cross-ETF re-tune and Stage-aware test, 11 Nov 2026), not on this ETF alone. Background colour = TQQQ’s Stage from the price-based proxy on every bar (the dashboard Stage rules applied to TQQQ vs SPY prices only; no mention data, so Start, Peak and Faded cannot appear): green Push Up; yellow Recovery Attempt or Basing; orange Pullback; red Rolling Over; grey Unclassified. The same proxy is used in the cross-ETF backtests, so this chart matches them.

TQQQ Scenario B: all 23 trades

#Buy dateBuy ruleBuy closeSell dateSell ruleSell close% gainDays held
18 Jan 2021B4 middle-band reclaim23.7825 Feb 2021S4 waited for a close below SMA 6821.98-7.6%48
29 Mar 2021B2 embed-low end21.4110 May 2021S4 waited for a close below SMA 6824.00+12.1%62
325 May 2021B4 middle-band reclaim25.4421 Sep 2021S4 waited for a close below SMA 6833.42+31.3%119
423 Sep 2021B3 trend pullback35.3517 Dec 2021S5 Stage Rolling Over: waited sell fired on a close below SMA 4037.70+6.7%85
522 Dec 2021B3 trend pullback40.415 Jan 2022S4 waited for a close below SMA 6837.34-7.6%14
631 Jan 2022B2 embed-low end30.925 Apr 2022S2 embed-high end, close below SMA 6828.74-7.0%64
74 May 2022B2 embed-low end21.076 Jun 2022S1 overbought cross, close below SMA 6816.27-22.8%33
823 Jun 2022B2 embed-low end12.6625 Jul 2022S1 overbought cross, close below SMA 6814.55+14.8%32
928 Jul 2022B5 20-day-high re-entry15.8129 Aug 2022S4 waited for a close below SMA 6814.65-7.3%32
109 Sep 2022B2 embed-low end14.9218 Jan 2023S1 overbought cross, close below SMA 689.73-34.8%131
1126 Jan 2023B5 20-day-high re-entry11.3410 Mar 2023S4 waited for a close below SMA 6810.44-7.9%43
1214 Mar 2023B3 trend pullback11.3910 Aug 2023S5 Stage Rolling Over: waited sell fired on a close below SMA 4019.94+75.1%149
1322 Aug 2023B2 embed-low end19.007 Sep 2023S4 waited for a close below SMA 6820.19+6.3%16
142 Oct 2023B2 embed-low end18.2415 Apr 2024S4 waited for a close below SMA 6827.89+52.9%196
1524 Apr 2024B2 embed-low end26.8524 Jul 2024S4 waited for a close below SMA 6832.72+21.9%91
168 Aug 2024B2 embed-low end29.0328 Aug 2024S2 embed-high end, close below SMA 6833.35+14.9%20
1711 Sep 2024 most interestingB1 oversold cross (late, gap 111%)32.288 Jan 2025S5 Stage Rolling Over: waited sell fired on a close below SMA 4040.34+24.9%119
1821 Jan 2025B4 middle-band reclaim42.2618 Nov 2025S4 waited for a close below SMA 6849.18+16.4%301
1928 Nov 2025B4 middle-band reclaim54.5412 Dec 2025S2 embed-high end, close below SMA 6852.82-3.2%14
2022 Dec 2025B3 trend pullback54.258 Jul 2026S5 Stage Rolling Over: waited sell fired on a close below SMA 4072.72+34.0%198
2110 Jul 2026B3 trend pullback77.0319 Aug 2026S2 embed-high end, close below SMA 6872.06-6.5%40
2227 Aug 2026B3 trend pullback73.3016 Oct 2026S4 waited for a close below SMA 6868.21-6.9%50
2328 Oct 2026B2 embed-low end72.3612 Nov 2026 openstill held (valued at last close)59.88-17.2%15

Every B1 cross that Scenario B blocked or delayed (TQQQ)

#Cross dateClose%K%DGap %Gap ptsWhat Scenario A madeWhat Scenario B did instead
124 Jan 202228.758.97.913%1.0-0.0% (B1 here, sold 5 Apr 2022 at 28.74, S2 embed-high end, close below SMA 68; 71 days)31 Jan 2022, B2 embed-low end at 30.92: -7.0% (sold 5 Apr 2022)
210 Sep 2024 most interesting30.3513.513.31%0.1+32.9% (B1 here, sold 8 Jan 2025 at 40.34, S5 Stage Rolling Over: waited sell fired on a close below SMA 40; 120 days)late B1 next close 11 Sep 2024 at 32.28 (gap now 111%): +24.9% (sold 8 Jan 2025)

Gap % = %K / %D − 1 on the cross day (needs 25%); gap pts = %K − %D. A delayed (late) B1 buys on the next close only.

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