PRO Investing - AlphaCentauri D |ILF|PRO Investing – AlphaCentauri D | ILF |
1. Summary and Core Concept
AlphaCentauri is a quantitative backtesting strategy engineered specifically for the iShares Latin America 40 ETF (ILF) on the Daily (1D) timeframe. Its objective is to systematically extract alpha by identifying statistically significant trading opportunities through rigorous time-series analysis.
Rather than relying on traditional technical indicators, the strategy focuses on the structural behavior of price action, targeting market conditions that have historically preceded sustained directional trends across major Latin American equity markets.
2. The Analytical Process: How It Works
AlphaCentauri employs a multi-stage quantitative framework designed to isolate high-probability trading environments. It combines statistical pattern recognition with confirmation logic applied directly to ILF price data.
Structural Pattern Recognition
The core engine analyzes historical ILF price series to detect recurring structural formations, geometric configurations, and cyclical behaviors that tend to emerge ahead of persistent trend development in Latin American equities.
Signal Validation and Execution
Trade signals are generated only when multiple independent analytical layers align. Structural conditions must be confirmed by secondary quantitative checks before a position is initiated. This disciplined approach keeps the strategy flat during non-directional, unstable, or politically driven regimes and engages exposure only when quantitative confidence is high.
3. How to Use This Strategy
Timeframe and Asset Specificity
AlphaCentauri has been designed, tested, and optimized exclusively for ILF on the Daily (1D) timeframe. Its logic is not intended for other ETFs, assets, or intraday timeframes and may produce unreliable results if applied outside its intended scope.
On-Chart Transparency
All historical trade entries and exits are plotted directly on the chart, providing full transparency for performance evaluation, drawdown analysis, and regime assessment across varying macro and regional market conditions.
4. Risk Management: The Strategy’s Foundation
Risk management is embedded at the core of AlphaCentauri’s design and is fully reflected in both execution logic and backtesting parameters, in alignment with TradingView’s standards for realistic and responsible strategy publication.
Dynamic Stop-Loss and Position Sizing
Each trade employs a dynamically calculated stop-loss based on recent market volatility. Position size is automatically adjusted to target a predefined risk percentage per trade.
During periods of elevated volatility or macro stress, the maximum potential loss on a single position may approach, but is designed not to exceed, 5% of total account equity. Under normal market conditions, realized risk typically remains well below this limit.
Realistic Backtesting Parameters
Initial Capital: $100,000
Commission: $5.00 per order to reflect realistic transaction costs
5. Disclaimer
For institutional research and quantitative strategy validation only. This is not investment advice. Trading emerging market and regional equity ETFs involves material risk, including political risk, currency volatility, liquidity constraints, and regime shifts. Past performance does not guarantee future results. All live deployment and capital allocation decisions remain the sole responsibility of the user or institution.
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