The Expert Advisor analyses two dimensions, described in the book "Trading Chaos" by Bill Williams, - the Fractal (phase space) and the Driving force (phase force). Bill Williams' Alligator (Alligator) is a combination of three balance lines:
- Alligator's Jaws (blue line) is a 13-period moving average of the medium price (High+Low)/2 shifted by 8 bars in future;
- Alligator's Teeth (red line) is a 8-period moving average of the medium price (High+Low)/2 shifted by 5 bars in future;
- Alligator's Lips (green line) is a 5-period moving average of the medium price (High+Low)/2 shifted by 2 bars in future;
Using the Alligator one can detect the direction of existing trend or its absence. If all the three lines are interwoven with each other, then is considered Alligator to be "asleep". At that time the market trades in a thin range (flat), taking away from traders the profit earned on previous price movement. The longer the Alligator sleeps, the hungrier it becomes and the stronger price movement is expected.
While the Alligator sleeps stay out of market! Awakening, the Alligator opens its Jaws (the balance lines diverge) and starts hunting for prey. As it becomes satiated, it falls asleep again (the balance lines converge).
If the Alligator is not asleep, there's a ascending or descending trend (the prey runs away from the Alligator).
Buy fractal - a series of five consequent bars with two bars with lower maximums standing before and after a bar with the highest maximum. Sell fractal - a series of five consequent bars with two bars with higher minimums standing before and after a bar with the lowest minimum.
Buy and sell fractals can be composed of the same bars. If a buy fractal is above the Alligator's Teeth (red line), a Buy Stop pending order for opening a position should be placed above the maximum of the bar, where the fractal has been formed. If a sell fractal is below the Alligator's Teeth, a Sell Stop pending order should be placed below the minimum of the bar, where the fractal has been formed.
If a buy fractal is formed below the Alligator's teeth or a sell fractal is formed above the Alligator's teeth, you should skip the deal not to feed the Alligator. The fractals are active until they are "hit" or until a new fractal in the same direction appears (in this case the previous signal is canceled and the pending order is canceled). The point where a fractal is hit is essential, i.e. it is the bar at which you should enter the market after the fractal is passed. If that bar is outside of the Alligator's Teeth, such deal is allowed.
The Expert Advisor places pending orders above the upper fractal and below the lower fractal on the distance indicated in "The point of creating order" depending on the Alligator state. When one of the orders triggers, the second is removed. Depending on the parameter "The number of orders in the series" the Expert Advisor works in two ways:
- "The number of orders in the series" = 1
It is a breakthrough Expert Advisor. If the fractal is broken through upwards, buy with fixed TakeProfit and StopLoss. If the fractal is broken through downwards, sell. In this case the Expert Advisor risks only with % of the deposit specified in its settings ("Percentage of risk").
- "The number of orders in the series" > 1
This is the Expert Advisor with reversal orders. When one order triggers, another one is placed at StopLoss price with the other type and the increased volume (if there was a buy, a sell pending order is placed; in case the first order is closed by StopLoss, another sell order is instantly placed, etc.). The number of such reversals is limited by "The number of orders in the series" parameter.
The Expert Advisor displays messages in 5 languages (EN-English, RU-Russian, DE-German, FR-French, ES-Spanish).
Parameters ("Profit in point", "Loss in points", "The point of creating order", "Slippage") are set for 4-digit quotes. If the Expert Advisor works on a pair with 3 or 5-digit quotes, then the Expert Advisor multiplies the parameters by 10 by itself.
The Expert Advisor has flexible settings so each trader could adjust it to own work style. It has a custom optimization criterion (Custom max), which is an alternative for the standard optimization in the "Balance + min Drawdown" mode. A good solution for those who want to get a ready-made Expert Advisor for less money.
- Language of messages displayed (EN, RU, DE, FR, ES) - language of the output messages (English, Russian, German, French, Spanish);
- Initial lot - initial lot;
- Profit in point - profit in points;
- Loss in points - loss in points;
- Expert working period - the working period (the Expert Advisor will work on the exact period, which is specified here, even if it is running on the chart whose period differs from the one set);
- The point of creating order - distance from fractals for placing orders;
- Lot increasing factor - lot increase coefficient;
- The number of orders in the series - number of orders in a series;
- Magic - magic number of the Expert Advisor;
- Percentage of risk (0-10), 0 - do not increase - lot increase depending on the free margin size - (1-10) percent (can be fractional, e.g. 1.5%), 0 - do not increase;
- Check margin before making a series of deals - check whether there is enough money to open a series of deals (during initialization of the Expert Advisor);
- The number of tries to create order (with requotes or other errors) - number of tries to create an order (with requotes or other errors);
- Slippage - slippage;
- Show log: 1-Yes, 0 - No - show the log: 1 - Yes, 0 - No;
- Time from - the date on which the Expert Advisor starts working;
- Time to - the date up to which the Expert Advisor works (if there is an open position, it continues to work till it is closed);
- Indicator working period - period of the indicator;
- period of jaws - period of Jaws;
- horizontal shift of jaws - horizontal shift of Jaws;
- period of teeth - period of Teeth;
- horizontal shift of teeth - horizontal shift of Teeth;
- period of lips - period of calculation of Lips;
- horizontal shift of lips - horizontal shift of Lips;
- type of smoothing - type of smoothing;
- type of price - type of price.
Gold (Every tick mode)
With the initial deposit of $10000 Adad earned $226 386.07 at XAUUSD for the period since 1-st of January, 2012 to 16-th of December, 2012. Profit Factor is 2.84. The maximum drawdown of balance is 17.57%.