Bitcoin Momentum Strategy Using the Alligator and Awesome Oscillator
Summary
This long-only Bitcoin strategy combines a three-line Alligator indicator with the Awesome Oscillator. It enters when the oscillator crosses above its own five-period average, provided price is above all three Alligator lines calculated from daily data. The chart-timeframe Alligator jaw also informs a protective stop: the stop is set using the higher of a percentage-based price level and the jaw. A configurable date window limits when entries may occur, and the script includes alert fields for a trading bot.
The source specifies four-hour Bitcoin trading, 0.1% commission, slippage of five ticks, and position sizing at 50% of equity. It also delays entries for two bars after a profitable closed trade. These are implementation settings, not evidence of profitability: the document includes no strategy report or performance statistics. The code excerpt ends partway through the exit call, so its complete exit and alert behavior cannot be verified. The approach may also be exposed to whipsaws and risks from higher-timeframe signal timing.
Key ideas
- The strategy enters long when the Awesome Oscillator crosses above its five-period average.
- Entries require price to exceed all three daily Alligator lines.
- A protective stop uses the higher of a percentage-based level and the chart-timeframe Alligator jaw.
- The script limits trading by date and can send bot alerts.
- No performance results are provided, and the displayed source is incomplete.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.