Amazon: trend-following strategy vs buy & hold
Equities · tracked with Amazon (AMZN)
Amazon runs the largest online store in the West and Amazon Web Services (AWS), the biggest cloud-computing platform, plus a fast-growing advertising business.
Growth of 100 since 1997
buy & hold · total returnBuy & hold total return of Amazon (AMZN). The Strategy Alpha results and live signal for Amazon are part of Plus.
What drives Amazon
AWS profitability, consumer spending, advertising and cost discipline drive results; growth expectations drive the valuation.
How a trend-following strategy handles Amazon
Amazon lost over 90% after the dot-com bubble before becoming one of the biggest winners in market history. Its path shows both the reward of holding winners and the cost of holding through crashes.
Our Strategy Alpha applies the same simple, rules-based trend filter to every market: invested while the trend is up, in Treasury bills while it is down, checked once a month. It is not a forecast — it is a discipline that aims to keep most of the long climbs and sit out the deepest drawdowns.
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Educational content, not investment advice. Backtested results are hypothetical and do not guarantee future results. Disclaimer.