The line – Alligator FOREX strategy

This strategy uses three moving averages coupled in one amazing forex indicator (alligator) to properly identify trend, filtering out almost all of countertrend trades. Furthermore, accelerator forex indicator is used for position entry and timing. It works flawlessly when identifying correction and is even better in waiting for corrction exhaustion. As a result, we enter the position in the direction of the trend just after the correction.

Strategy also uses adding to the winner. This agressive tool of money management will allow you to open a risk free positions and ride the trend with as much leverage as possible.

 

Strategy rules

Timeframe 1 H

Used forex indicators:

Alligator (jaws 26, teeth 16, lips 10), shifts for all parameters are unchanged

Accelerator (AC) default settings.

 

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Forex strategy rules.

We start by identifying trend.

 

BUY:

 

Alligators line aligned according to uptrend (from top): green, red, blue

During correction (price decline) within uptrend, accelerator readings were below 0 (negative). Once the first positive bar appears again, we enter position long.

 

Protective stop loss is placed couple of pips below previous swing low – the lowest point of correction also represented by lowest readings on accelerator indicator.

 

Take profit: we open new position to the direction of the trend only at higher price and if new high was reached. After opening new position we move all our positions exits to the break even of last profitable position.

 

SELL:

 

Alligators line aligned according to downtrend (from top): blue, red, green

During correction (price rally) within downtrend, accelerator readings were above 0 (positive). Once the first negative bar appears again, we enter position short.

 

Protective stop loss is placed couple of pips above previous swing high – the highest point of correction also represented by highest readings on accelerator indicator.

 

Take profit: we open new position to the direction of the trend only at lower price and if new low was reached. After opening new position we move all our positions exits to the break even of last profitable position.

 

 

 

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THEFOREXKINGS

“Trading FOREX since 2006. Full time trader and web developer since 2013. My two biggest hobbies are trading and web development. In TheForexKings I managed to connect both of them. Even after 12 years of trading I still have the same passion for the market as at the beginning. The aspect I enjoy the most : development and testing of new ideas.” 

 

Only in 2016 - 2017 we have created more than 400 forex strategies. During this period we have also developed and published +200 MT4 Expert advisors based on those strategies. We are dedicated to provide you with viable and complete trading systems that have thrived in extensive historical testing. We want to give you complete and transparent trading solutions, that once mastered ,will set you financially free. We want to give you a fighting and winning chance in the market. ” 

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