Implementing and Testing Bill Williams’ Five-Dimension Trading System
Summary
This article turns Bill Williams’ trading framework into a MetaTrader Expert Advisor and describes signals from the Alligator, Fractals, Awesome Oscillator, and Accelerator Oscillator. Entries combine fractal breakouts filtered by the Alligator with oscillator patterns, including zero-line crossings, saucers, color zones, and additional entries as a trend develops. The implementation also includes stop management and position additions, with some rules adjusted to execute at a new bar rather than at the prior bar’s close.
The author tests the system on IBM, EURUSD, and other Forex or CFD data. Reported outcomes vary: a visible IBM trend produced profit, a slower trend was unsatisfactory, and EURUSD results were more acceptable on daily bars than on smaller timeframes. The tests are limited and not optimized; the author notes that exits can be delayed and leave substantial open profit uncollected. The evidence therefore illustrates conditions where the rules struggled as well as where they appeared to work, rather than establishing robust performance.
Key ideas
- The system combines Alligator-filtered fractal breakouts with Awesome Oscillator and Accelerator Oscillator signals.
- Oscillator entries include zero-line crossings, saucer patterns, and consecutive color zones.
- Position additions and stops are used to participate in trends and manage exits.
- Tests across IBM and EURUSD showed inconsistent results, with daily EURUSD performance more promising than smaller timeframes.
- Delayed exits were identified as a weakness, and the tests were not optimized.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.