“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.
- 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).
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.
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.
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.
- UseATRStop - Defines whether the EA uses ATRStop or not. If true, the EA sets stop loss based on ATR.
- ATR - Multiplier of ATRStop.
- 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
Do you need help with installing this indicator into MT4 for Windows or Mac OS? Our guide HERE will help you.