The strategy is based on the
intersection of the lines of the Alligator technical indicator, described in
B. Williams ‘ book “Trading Chaos”.

This
system is a combination of three biased moving averages
(Lips, Teeth, and Jaw lines) and oscillators based on them.
The lines of the Alligator indicator generate a signal to open a position when
they intersect at one point and come out of it, arranged
according to their periods.

When the
market moves up, the highest moving average will be the average with the
minimum period (the Lips line), followed by the average with the short
period (the Teeth line) and below all is the average with the largest
period (the Jaw line). Similarly, when the market moves down, the
lowest line will be the Lips line, followed by the Teeth line, and the highest will
be the Jaw line.

The main provisions of the strategy:

• Opening a long position: the intersection of the Alligator lines and their divergence after crossing when moving up;
• Closing a long position: the Lips line crosses the Jaw line from bottom to top;
• Opening a short position: crossing the Alligator lines and their divergence after crossing when moving down;
• Closing a short position: The Lips line crosses the Jaw line from top to bottom.

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Parameters:

• Inp_Signal_Alligator_JawPeriod = 33;
• Inp_Signal_Alligator_JawShift = 8;
• Inp_Signal_Alligator_TeethPeriod = 28;
• Inp_Signal_Alligator_TeethShift  = 5;
• Inp_Signal_Alligator_LipsPeriod = 15;
• Inp_Signal_Alligator_LipsShift   = 3;
• Inp_Signal_Alligator_MaMethod = MODE_SMMA;
• Inp_Signal_Alligator_Applied  = PRICE_MEDIAN;
• Inp_Signal_Alligator_CrossMeasure= 5;
• Inp_Money_FixLot_Percent = 10.0;
• Inp_Money_FixLot_Lots = 0.1;

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