Combining Alligator Alignment with an EMA Trend Filter

Summary

This strategy pairs the Williams Alligator’s three smoothed price averages with a longer exponential moving average (EMA). It opens a long position when price is above the EMA and the Alligator lines are ordered upward; it opens a short when price is below the EMA and the lines are ordered downward. Opposite alignment conditions close positions, and the script allows long and short entries to be enabled separately.

The document explains that the EMA is intended to reduce premature exits when the Alligator briefly signals a reversal during a broader trend. It provides the rules and configurable indicator lengths and offsets, but no backtest results or performance evidence. The description is incomplete at the end, and the code’s exit conditions require both the price and Alligator alignment to reverse, so they do not implement an EMA-only exit. Trend strategies can also generate poor signals in choppy markets; the document does not quantify this risk or establish which assets or settings work best.

Key ideas

• Long entries require price above the EMA and Alligator lines ordered from lips to jaw.
• Short entries require price below the EMA and Alligator lines ordered from lips to jaw in reverse.
• Positions close when price and Alligator alignment meet the opposite trend conditions.
• The EMA is intended to help hold positions through brief Alligator reversals.
• The document supplies no empirical performance results.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.