Long-Only Acceleration and Deceleration Strategy with Fractal Trend Filters
Summary
This strategy combines the Acceleration/Deceleration oscillator with Williams Fractals, an Alligator-style smoothed moving average, and an EMA trend filter. Fractal levels relative to the Alligator line define an approximate short-term trend; an EMA filter admits long setups only when price is above the longer-term average. The oscillator generates rising-momentum signals, which the script turns into stop entries above an activation high.
It can add as many as five long entries during a trend cycle and closes the position when its fractal-based trend state reverses. It cancels pending orders when oscillator momentum weakens and restricts trading to a configurable date window. The description says the method is long-only and does not use fixed stop-loss or take-profit levels. The document provides code and a methodology overview but no quantitative performance evidence; fractal confirmation, indicator parameters, execution assumptions, and the absence of a fixed protective exit limit what can be concluded about risk and effectiveness.
Key ideas
- Fractal levels and an Alligator-style smoothed average are used to estimate short-term trend direction.
- An EMA filter restricts long entries to price action above the selected longer-term average.
- Acceleration/Deceleration signals trigger stop entries above a signal activation high.
- The strategy scales into long positions with up to five entries and exits when its trend state reverses.
- The script has no fixed stop loss or take profit and supplies no performance validation.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.