How the Engine Works
A systematic approach to detecting anomalous compression patterns in US equities, entering on breakout, and compounding returns through multi-layer exit and re-entry.
The Core Insight
Markets oscillate between compression and expansion. When a stock's volatility contracts to historically anomalous levels, it signals a build-up of potential energy. The direction of the subsequent breakout may be uncertain, but the magnitude of the move tends to be proportional to the depth of compression.
A.I.ccelerate monitors 141 US equities in real time, using proprietary composite indicators to detect when compression reaches critical thresholds. The engine doesn't predict direction — it identifies the conditions where structural breakouts are statistically likely to deliver outsized moves.
Four-Stage Autonomous Pipeline
Compression Detection
The engine continuously monitors volatility compression across the full 141-symbol universe. Multiple proprietary indicators are combined into a composite signal that identifies when a stock's price range has contracted to anomalous levels relative to its own history.
Entry Signal
When the composite compression signal crosses a critical threshold, the engine generates an entry signal. This is fully systematic — no discretionary input, no emotional override, no second-guessing. The signal fires or it doesn't.
Compounding Re-entry
After an exit at expansion targets, the engine doesn't walk away. It calculates precise re-entry levels based on the expansion magnitude. When price retraces to these levels, the engine re-enters — often at a lower cost basis, compounding share count trade over trade.
Multi-Layer Exit
Capital protection comes from multiple exit layers operating at different timeframes:
- Exit Layer 1: Short-term distribution detection
- Exit Layer 2: Medium-term structural shift identification
- Exit Layer 3: Deep-value re-entry after extended declines
What Makes This Different
Not Trend Following
The engine enters during compression, not expansion. It's contrarian by design — buying when volatility is low, not chasing momentum.
Capital Recycling
Most systems buy and hold or buy and sell. This engine exits, re-enters lower, and compounds. Each cycle builds on the last.
Layered Protection
No single exit point. Multiple independent exit layers protect capital at different time horizons, reducing the risk of any single failure mode.
Honest Disclosure
- ⚠ Backtesting uses historical data with perfect hindsight on bar-level OHLCV. Real-world execution will include slippage, latency, and partial fills.
- ⚠ Not all symbols perform equally. Some lose money. The engine's edge comes from aggregate compounding across the universe, not from every individual trade.
- ⚠ The engine is currently in paper trading validation. No real capital is at risk. Results will be tracked transparently.
- ⚠ This is not financial advice. The engine is an experimental research system.
Follow the engine's journey from backtest to live trading.
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