RSI Alligator Strategy Signals and Long-Only Exits

Summary

This strategy adapts the Williams Alligator concept by applying three RSI calculations to closing prices, labeled jaw, teeth, and lips. Long and short signals come from crossovers between the teeth and lips, or between the jaw and lips, with the other RSI lines used as directional filters. A setting can restrict entries to the major teeth-lips cross.

Users can choose long, short, or both directions and constrain the strategy to a date range. The script sets a stop and take-profit level for long trades and closes positions on opposing signals in single-direction modes. It provides configurable RSI periods, crossover filtering, and trade costs, but the document reports no backtest results or evidence of performance. Its default is long-only, and its displayed exit logic attaches the stop and target to long entries, so short-side risk controls are not specified there.

Key ideas

• The strategy uses three RSI series as analogues of the Alligator jaw, teeth, and lips.
• Long signals follow upward RSI crossovers subject to relative RSI ordering, with inverse conditions for shorts.
• A filter can limit signals to crossings between the teeth and lips.
• Direction and backtest date range are configurable, while stop and target exits are defined for long entries.
• The document provides no performance results, and it does not define comparable stop and target exits for short entries.

Tags

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