EdgeStacker
Library
Mean reversion · AVGO · 1D

Does CCI oversold bounce actually work on AVGO? We tested it

We ran CCI oversold bounce on AVGO through walk-forward testing and a 100-run random-entry gauntlet. 4 of 4 unseen periods positive. Beat 75 of 100 random-entry runs.

WALK-FORWARD VERIFIED EDGESTACKER ENGINE
Return +225.0%
Win rate 85.7%
Max drawdown −38.1%
Trades 35
Sharpe 0.83
Equity curve

Equity curve over Aug 2016 to Jul 2026. Hover any point for its value. Turn on buy and hold to compare.

PeriodWindowReturnSharpeTrades
1 Aug 2018 to Jul 2020 +10.5% 0.52 7
2 Jul 2020 to Jul 2022 +28.6% 0.91 9
3 Jul 2022 to Jul 2024 +30.6% 1.12 7
4 Jul 2024 to Jul 2026 +52.5% 0.98 10
4 of 4 periods positive. Mean Sharpe 0.88. Worst period +10.5%.
Market matrix
Edge held on 7 of 28

The same rules, tested on 28 tickers. Edge held on 7. We ship it on those.

AVGO SHIPPED
75/100 EDGE
DIA
93/100 EDGE
META
92/100 EDGE
UBER
90/100 EDGE
NFLX
87/100 EDGE
MSTR
76/100 EDGE
NVDA
75/100 EDGE
Show every ticker we tested
COIN
91/100 NONE
RIOT
71/100 NONE
AMZN
66/100 NONE
XOM
61/100 NONE
GLD
57/100 NONE
JPM
54/100 NONE
SPY
52/100 NONE
MARA
46/100 NONE
GOOGL
45/100 NONE
QQQ
40/100 NONE
MSFT
36/100 NONE
BA
27/100 NONE
AMD
26/100 NONE
IWM
17/100 NONE
MU
15/100 NONE
AAPL
12/100 NONE
TSLA
12/100 NONE
SMCI
5/100 NONE
PLTR
too new TOO NEW
HOOD
too new TOO NEW
SOFI
too new TOO NEW
The rules
Entrywhen CCI of close over 20 bars crosses above -100 AND close is above SMA of close over 200 bars
Exitwhen a signal fires (CCI of close over 20 bars is above 100)
Sizing**Position size:** no fixed stop distance to size against. This strategy exits on signal only. Size by conviction, or add a hard stop for a size-by-risk number.
Diagnosis

This strategy made money overall, turning a 225% total return on AVGO with a high 85.71% win rate, meaning most trades were winners. However, the ride was very lumpy, as shown by a Sharpe ratio of 0.83 and a brutal maximum drawdown of -38.10% that lasted from mid-February to early April 2025, which is where it hurt the most. The result is not driven by just a few lucky trades, since the average trade returned a solid 3.54% across 35 trades, and the consistency figure shows it was profitable in all 4 walk-forward test periods, so the edge held up steadily over time. The entry-timing edge figure of 75% indicates that the entry itself is doing meaningful work, but it is not overwhelmingly dominant, meaning the exits also contribute to the overall success.

Run this on your own account.

Sign up free. EdgeStacker runs a fresh backtest for you, then alerts you on the Today screen when the setup fires.

Test it yourself, free
Backtested results, not live trading returns. Fees and slippage included. Not investment advice.