Last Updated on May 8, 2025 by Tim Morris

Entropy Forex Trend following Strategy

This trend following trading system have two indicators, this is the alligator indicator created by Bill Williams and Entropy indicator (created by Aleksandr Pak ) which is an indicator of market strength.

Forex Indicators and setups:

• Alligator (13, 8, 5);
• EntropyMath forex indicator (12 period with 0.001 Buy level and -0.001 Sell level).

Buy Entry:

Condition: the candles are above the Alligator indicator.

• The Alligator Lip (green line) must cross above the Jaw (blue line).
• The Alligator Teeth (red line ) must cross above the Jaw (blue line).
• Entropy math 12 must cross 0.001.
• Enter a Buy trade at the retracement on the green line.
• Place Stop Loss below the most recent Swing Low.
• Take Profit at the same number of pips away from your entry price as your Stop Loss, i.e. a 1:2 or greater Risk/Reward Ratio.

Sell Entry:

Condition: the candles are below the Alligator indicator.

• Wait for the Alligator Lip (green line) must cross below the Jaw (blue line).
• Wait for the Alligator Teeth (red line) must to cross below the Jaw (blue line).
• Entropy math 12 must cross 0.001.
• Enter a Sell trade at the retracement on the green line.
• Place Stop Loss above the most recent Swing High.
• Take profit at the same number of pips away from your entry price as your Stop Loss, i.e. a 1:2or greater Risk/Reward Ratio.

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