The AlligatorStrat strategy is a proof of concept strategy that buys and sells assets based on crossovers. It uses several technical indicators to make trading decisions. Indicators:
Simple Moving Average (SMA): Calculates the average price over a specific time period (5, 8, and 13 periods in this case).
Moving Average Convergence Divergence (MACD): Measures the relationship between two moving averages of different time periods and identifies potential buy and sell signals.
Buy Signal:
The strategy generates a buy signal when the following conditions are met:
The short-term SMA crosses above the medium-term SMA.
The MACD value is positive and greater than the MACD signal value. Alternatively, the MACD crosses above the MACD signal. Sell Signal:
The strategy generates a sell signal when the following conditions are met:
The price closes below the medium-term SMA. The MACD value is negative and lower than the MACD signal value. Alternatively, the MACD crosses below the MACD signal. This strategy aims to achieve a minimal return on investment (ROI) of 0.1 and has a stop loss set at -0.2. It is designed to be applied on 4-hour candlestick data. However, the strategy performance is not very good and serves primarily as a proof of concept.