The well-known technical indicator, the Alligator, developed by Bill Williams, is undoubtedly one of the most accurate automatic market analyzers; therefore, a huge number of trading strategies have been created based on it. The "Alligator Universal" trading system offered by us is another effective way to use technical signals that will make it possible to achieve up to 200% growth of your weekly capital.
The Alligator indicator is traditionally used to identify lingering trend movements when the market is leaving a flat state; however, for this strategy, thanks to the technical instrumentation's changeable settings, the indicator signals will be used to determine moments of prices leaving corrective rollbacks.
So first we will apply the Alligator indicator to the quote chart with a 1-minute timeframe and configure the following settings:
The customized Alligator will now appear on the chart in the following format:
Now let's discuss the conditions of use for this strategy. First of all, you must have the following trading platform functionality:
This trading system was tested on the platform from the Binomo company, a licensed, advanced participant in the financial market, providing its clients with high-tech options trading services:
Transactions are concluded DOWN when a trading signal of the following format appears:
Transactions are concluded UP when a trading signal of the following format appears:
If the indicator's moving averages intersect with the reverse direction before the price returns to the red Alligator moving average, we do not conclude a transaction, and we wait for a new trading signal. The duration of transactions should be set within 2-4 minutes, which will bring a profit for the largest possible number of open contracts.
The size of the trading bet is set depending on the available amount of working capital according to the rules of money management. With a large account, the transaction volume can be increased to 5% of the account size, and for a small trading account, the lot size is set to the lowest available amount (on the Binomo terminal, the smallest lot is 1 dollar). This way, you can avoid deep drawdown in your account when you receive unprofitable transactions and you can steadily increase your capital by gaining profitable contracts.
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