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Strategies / Trend / Alligator Trend EMA Filter

Alligator Trend EMA Filter

The strategy follows a three-line Alligator structure filtered by a 200-period EMA. It buys when the close is above the EMA and the lines are ordered upward, sells short on the mirror condition, and closes on the reverse condition.

TrendLong & shortSwingUSD/JPYDaily
2.42Profit factor
3,526,970Net profit USD
29.53%Win rate
193Trades
-398,000Max drawdown
18,274Avg trade

Best run of 13. USD/JPY, Daily, spread 1, from run pf:2026-10-12-USDJPY-D.tsv:53.

Entry rules, long

  1. While flat, the close is above EMA(200).

Entry rules, short

  1. While flat, the close is below EMA(200).

Exit rules

  2. A short closes when the close is above EMA(200) and the lines are ordered 3-period above 5-period above 8-period.

Test conditions

PeriodUp to 2026-10-12
InstrumentUSD/JPY, Daily
Spread1 points
Starting capital1,000,000
CostsSpread only. Commissions and overnight financing are not included.
BarsUp to 200,000 bars, fewer where the instrument has less history
Last tested2026-10-12

Every run

Markets and timeframes tested

MarketTimeframePFTradesWin %NetMax DD
USD/JPYBest runDaily2.42 19329.533,526,970 USD-398,000
Silver1 hourn/a 2,01022.64612,739 USD-567,835
EUR/USDDailyn/a 18531.35158,788 USD-42,208
EUR/USD3 minn/a 3,76319.72103,350 USD-33,083
Nikkei 225Dailyn/a 18225.2751,412 USD-33,106
GBP/USDDailyn/a 21531.1623,089 USD-7,424
Nasdaq 100Dailyn/a 14835.1422,252 EUR-5,670
US Crude OilDailyn/a 20729.4712,002 EUR-7,919
S&P 500Dailyn/a 21428.974,450 EUR-1,198
GoldDailyn/a 21028.103,880 EUR-1,108
Gold1 hourn/a 1,90725.122,060 EUR-1,284
Gold5 minn/a 3,52821.601,242 EUR-776
Gold3 minn/a 3,57522.18907 EUR-906

Charts

Results by run

Top 10 of 13 runs. The full list is in the table above.

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Alligator Trend EMA Filter
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Trend
// Direction: Long & short
// Timeframe tested: Daily
// ==============================================================

DEFPARAM CumulateOrders = false

jaw = WilderAverage[8](MedianPrice)
teeth = WilderAverage[5](MedianPrice)
lips = WilderAverage[3](MedianPrice)
trend = ExponentialAverage[200](close)

18 more lines: the entry and exit rules.

Setup

How to load it

  1. Copy the code with the copy button on the code block.
  2. In ProRealTime, open a chart of the instrument and timeframe you want to test, then open ProOrder > New trading system and choose "Create with programming".
  3. Paste the code, give the system a name and save it.
  4. Click "Backtest", set your own spread and position size, and run it before you consider trading it live.

Indicators used

EMAWilder Average
Read this firstKnown weaknesses2 points
  • The code sets no stop loss, so a losing trade stays open until an exit signal arrives.
  • Results include the spread only. Commissions and overnight financing are not included.

Questions

About this strategy

Can I run Alligator Trend EMA Filter in ProOrder?

Yes. The code is ProBuilder and runs as an automated ProOrder system. Backtest it on your own account with your own spread and position size before trading it live.

Which markets was it tested on?

It was tested on 13 market and timeframe combinations. The best run was USD/JPY, Daily, with a profit factor of 2.42 over 193 trades.

How large was the drawdown?

The best run had a maximum drawdown of 398,000 USD at the tested position size, against a net result of 3,526,970 USD.

Does it trade long, short or both?

It trades both long and short.

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Past backtest results do not guarantee future results. This is not financial advice. Curated and maintained by ProRealAlgos. ProRealTime™ is a trademark of ProRealTime SAS. prorealalgos.comStatsDocs