Alligator, AO, and AC Crossover Strategy with Recent-Range Stops
Summary
This trend-following system combines an Alligator-style moving-average crossover with momentum confirmation from the Awesome Oscillator (AO) and Accelerator Oscillator (AC). It goes long when the Lips line crosses above the Teeth line while both oscillators are positive, and short when the crossover and oscillator signs reverse. The described moving-average lengths are 13, 8, and 5, with separate line offsets.
Stops are placed at the recent five-bar low for longs or high for shorts, while profit targets are set at twice the risk distance. The document lists BTC/USDT futures backtest dates and timeframe, but supplies no reported returns, drawdowns, or trade statistics; its claims about accuracy and steady performance are therefore unsubstantiated. It notes potential lag, false signals in ranging markets, and the possibility that volatility triggers stops prematurely. Suggested additions such as volume checks and adaptive risk parameters remain untested ideas.
Key ideas
- A Lips and Teeth crossover sets the direction of a potential trade.
- Positive AO and AC values confirm long entries, while negative values confirm short entries.
- Stops use recent five-bar extremes, with targets set at twice the entry-to-stop risk.
- The multi-indicator filter may delay entries and can still produce false signals in ranges.
- Published backtest settings do not include performance results.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.