Scaling Long Positions with AO, AC, Fractals and Alligator Trend Filters
Summary
The strategy uses Awesome Oscillator (AO) and Acceleration/Deceleration (AC) momentum, Williams Fractals, an Alligator-derived trend line, and an EMA filter to identify long setups. A long entry is allowed when price is above the EMA and Alligator line, both oscillators are rising for at least two bars, and price is advancing. The script can add up to five entries, each sized at a stated portion of equity, while the rising-momentum condition persists within its configured bar-count range.
Positions close when the fractal and Alligator logic signals a shift from uptrend to downtrend, or when price falls below a stop level set from a recent low after a sequence of qualifying bars. The description presents this as a trend-strengthening approach rather than a fixed-target system, and it restricts trades to a configurable time window. Strategy settings include trading costs and slippage, but the supplied material contains no performance results or market-specific tests. The script's displayed settings, execution assumptions, and external alert fields should be reviewed before interpreting any backtest or applying the logic elsewhere.
Key ideas
- Long entries require rising AO and AC, price above the Alligator-derived line and EMA, and an advancing close.
- The script adds to a long position while the momentum and trend conditions persist, up to five entries.
- A trend reversal from the fractal and Alligator logic closes all open long trades.
- A stop level is set using a recent low after qualifying momentum bars.
- The document provides strategy logic and assumptions but no empirical performance evidence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.