Does the Commodity Channel Index strategy beat buy & hold on AMD? (AMD · backtested honestly)
The Commodity Channel Index measures how far the typical price (the high, low and close averaged) has stretched from its recent moving average, scaled by its own average deviation. On very quiet ranges that deviation is tiny, so the index can spike past +100 or -100 on almost no movement - the reading is a gauge of stretch, not a prediction. This rule treats a push above +100 as the start of a move and goes long on that breakout, exiting when momentum fades back below the zero line - a breakout/momentum reading of the stretch gauge. Like any breakout rule it is strong in sustained trends and it whipsaws in and out during sideways, range-bound markets.
Over this period, Commodity Channel Index on AMD returned +301.8%, while simply buying and holding returned +367.2% — it lagged buy & hold by 65.4 points, with a worst drawdown of -40.2%. It traded 30 times and sat in cash about 60% of the time. It's a mechanism you test — not a recommendation.
That's the past — settled, free, and the weakest proof there is. The honest next move isn't to trust it — it's to try to break it: does the edge hold across nearby settings and time, or was it luck? Most strategies that look good here don't survive that, and most should stop there. The few that do still haven't met a future nobody has lived yet. Forward-test Commodity Channel Index on AMD on paper — zero hindsight, losses and all — and get a mechanical alert the day it signals (you trade on your own broker). A hindsight-free track record can only be built by time passing, so the only way to have proof in three months is to start today.
Or stop here — a backtest you can kill for free has already done its job. And if it keeps surviving, that's the rare idea worth trusting with real money.
Run it yourself
Change the parameters and the window, then re-run — no account needed.
A live badge that re-runs itself and links back here. Free to embed on any blog, newsletter or forum — it shows the honest result, beat or lagged.
<iframe src="https://stratsemble.com/embed/amd-cci-backtest" width="360" height="252" style="border:0;border-radius:12px;max-width:100%" loading="lazy" title="Does the Commodity Channel Index strategy beat buy & hold on AMD?"></iframe>- • The strategy line is Commodity Channel Index on AMD; the dashed line is simply buying and holding AMD. Beating the dashed line is the whole point — many strategies don't.
- • Max drawdown is the worst peak-to-trough fall you'd have sat through. A higher return with a much deeper drawdown is not obviously better.
- • Every fill assumes next-open execution with costs & slippage on — no acting on prices you couldn't have known.
- • A small number of trades means a small sample. Treat a great-looking result on a handful of trades with suspicion.
This is a hypothetical backtest of a well-known mechanism on past data. It is not advice, not a prediction, and not a claim that the strategy works. I hold no funds and place no orders. The value here is the ability to test an idea honestly — see where it would have helped, and where it would have hurt — before you ever risk real money on your own broker.
How this is computed → · who's behind it · where a backtest fits