Profitunity (Chaos) Trading System by Bill Williams

Hello traders,

I recently discovered chaos systems and read a book about it (by Bill Williams). Convinced by my reading, I tried the system for a while...

It seems to be of value to me, but I didn't find a discussion about this trading system here, here it is:

Profit system

Apply the following tools on the chart
Alligator - three SMAs (13/8/5) with future offsets of 8/5/3 respectively.
Fractal - A sequence of 5 bars where the middle bar has the highest high/lowest low and the two bars before and after it have lower highs/higher lows preceded by two lower highs and followed by two lower highs
Ultra Oscillator (AO) - Difference between the 34-period and 5-period Simple Moving Average at the midpoint of the bar (H+L)/2
Accelerating Oscillator (AC) - 5/34 Difference between Momentum Histogram (AO) and 5 Simple Moving Averages on AO

To apply to the MetaTrader 4 platform, use these menus
Alligator : Insert->Indicators->Bill Williams->Alligator Line
Fractal : Insert->Indicators->Bill Williams->Fractal
Awesome Oscillator : Insert->Indicators->Bill Williams->Awesome Oscillator
Acceleration Oscillator : Insert->Indicators->Bill Williams->Acceleration Oscillator

Entries :
When the (Alligator) line opens, we set the buy stop to a point above the latest fractal outside the trend direction line

quit :
When (the Alligator Line) closes, we close too.

Add to :
After getting the first fractal, we get all signals in that direction.

Add entry signal :
AO :

1. We go long when AO crosses the zero line from negative to positive, and short when it goes from negative to positive.
2. We go long, we have 3 consecutive AO bars above the zero line, the last two have higher highs (i.e. AO pullback for a while)

- For sale opposite

AC :

1. Go long after two consecutive bars above the zero line
2. Go long after three consecutive bars below the zero line -

In short - reverse scenario

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That's it. If you need more information - you can read more here and I'll try to answer any questions...