“Alligator” is an indicator developed by Bill Williams. It is so popular that it is a standard indicator in Metatrader 4.
But this time we will introduce an EA (automatic trading software) that makes use of such an alligator.
Indicators used:
- Alligator
- ATR (used for profit determination)
A brief introduction about the “Alligator” indicator:
Alligators are characterized by using three moving average lines of 13, 8, and 5 days. In addition, this moving average line is displayed with a shift of 8, 5, or 3 days. Alligator compares these three moving averages to alligator jaws (Jaw), teeth (Teeth) and lips (Lips) (see image).
If these three moving average lines are mixed, it is considered that `` Alligator is sleeping '', but if the moving average line starts moving in the same direction, it is considered that `` Alligator has awakened '' and there is a trend.
In this way, when the alligator wakes up, the basic usage is to place an order and trade with the trend (this EA also conforms to this).
Entry logic:
This EA will place a buy order if the following conditions are met (sell order is the reverse):
- Lips number is higher than Teeth
- Teeth numbers are higher than Jaw
This entry logic is only confirmed when a new candlestick is created.
Exit logic:
This EA will close a buy order under the following conditions (for sell orders, it is the opposite).
- Lips numbers below Teeth
In addition, take profits can be provided and ATR stop loss can be used.
Conclusion:
Alligators are basically moving average crossover systems. However, the alligator is characterized by shifting the moving average line. Alligators can be used in a variety of trading methods, so if you are interested in these indicators, then definitely give this EA a try.
Compatibility:
MT4
Parameters
Basic parameters:
- TakeProfit
- StopLoss
- UseATRStop - Defines whether the EA uses ATRStop or not. If true, the EA sets stop loss based on ATR.
- ATR - Multiplier of ATRStop.
- Lots
- TrailingStop
- Jaw - The period used for calculation of Alligator Jaw
- Teeth - The period used for calculation of Alligator Teeth
- Lips - The period used for calculation of Alligator Lips
Note: Backtest results may be optimized. Also, the backtest results may differ from the trading results when using a live account. Please understand this point before you use the EA.
Download the "AlligatorEA" trading robot from the button below
Tip: Can’t open the downloaded archive file (ZIP or RAR)?
Try
WinRAR for Windows
or
The Unarchiver for Mac
.
Do you need help with installing this indicator into MT4 for Windows or Mac OS? Our guide HERE will help you.
Related education and FX know-how: