Gator and Awesome Trading

Gator and Awesome Trading is a strategy is built using the second dimension in Bill Williams Chaos Theory ¬ market momentum. Awesome Oscillator (AO) is used for .to measure momentum, an Generated trading signals are filtered using Fractals and Gator Oscillator (GO). Fractals and Alligator indicators are the first market dimension.

BUY signal:

A buy fractal is found on a chart. A buy fractal is a series of five consecutive bars with a highest High in the middle and two lower Highs on the sides.

After the buy fractal is generated, Awesome Oscillator (AO) is checked if there were signals since the last fractal. There are two types of signals we would be interested in: “Saucer” and “Zero Line Cross”

Saucer signal is when the first bar of the AO is red and above zero, the second bar is red and above zero, and the third bar is green and above zero.

Zero Line Cross signal: Two bars of the AO are green and below zero, and the next two bars are green and above zero.

Once one of the AO signals is generated, a Gator Oscillator is checked. The last closed bar below zero should be green.

AO is checked again. It should be positive and green.

When all of the conditions are met, the strategy waits for the price to become 1 pip above fractal’s highest high.

If the price reaches the level, two conditions must be met before opening a trade: the last closed bar of the AO should be green and positive, and GO’s last closed negative bar should be green.

If there is a new fractal (BUY or SELL) have appeared before all of the conditions to start waiting for the price are met, the strategy resets and the search for the signals continues.

If the price reached the level and a SELL Fractal appears, the strategy starts to wait for the price level again.

If there is an AO’s signal but other conditions to the start waiting for the price are not met, then this signal is ignored.

When all of the conditions are met, a long position is opened. Stop Loss, Take Profit and Trailing Stop are not used.

A long position is closed when the following conditions are met: Gator Oscillator turns red and both bars, positive and negative, are above zero Last AO’s bar is red.

SELL Signal:

A sell fractal is found on a chart. A sell fractal is a series of five consecutive bars with the lowest low in the middle and two highest lows on the sides.

After the sell fractal is generated, Awesome Oscillator (AO) is checked if there were signals since the last fractal.

There are two types of signals we would be interested in: “Reverse Saucer” and “Zero Line Cross”

Reverse Saucer signal is when the first bar of the AO is green and below zero, the second bar is green and below zero, and the third bar is red and below zero.

Zero Line Cross signal: Two bars of the AO are red and above zero, and the next two bars are red and below zero.

Once one of the AO signals is generated, a Gator Oscillator s checked. The last closed bar below zero should be green. AO is checked again. It should be negative and red.

When all of the conditions are met, the strategy waits for the price to become 1 pip below fractals lowest Low.

If the price reaches the level, two conditions must be met before opening a trade: The last closed bar of the AO should be red and negative, and GO’s last closed negative bar should be green.

If there is a new fractal (BUY or SELL) have appeared before all of the conditions to start waiting for the price are met, the strategy is reset, and the search for the signals continues.

If a position is not opened and a BUY Fractal appears, the strategy starts to wait for the price level again.

If there is an AO’s signal but other conditions to start waiting for the price are not met, then this signal is ignored.

When all of the conditions are met, a short position is opened.

Stop Loss, Take Profit and Trailing Stop are not used.

A short position is closed when the following conditions are met: Gator Oscillator turns red and both closed bars, positive and negative, are above zero Last AO’s bar is green