Wavelet Alligator – Separate Entry/Exit Experts & Wavelets-V2

Wavelet Alligator – Strategy Explanation & How to Use

1. Concept Overview
The Wavelet Alligator strategy combines:
- Wavelet transforms (Daubechies, Haar, Symlet, Mexican Hat, Morlet)
- Fractional calculus kernels: Caputo-Fabrizio (CF) and Atangana-Baleanu (AB)
- Three-layer “alligator-like” wavelet smoothing (soft → medium → strong)
- Expert-based entry/exit routing (RAW, CF, AB, or Majority vote)
- Independent wavelets for ENTRY and EXIT
- Main trend defined by AB wavelet ordering

This creates a multi-structure, multi-kernel trend engine capable of capturing extended moves with high signal quality.

2. Wavelet Alligator Structure
Each source (RAW, CF, AB) is transformed into three wavelet layers:
Soft = fastest reaction
Medium = mid smoothing
Strong = trend backbone

Wavelets:
- Daubechies: stable trend
- Haar: fast impulse detection
- Symlet: balanced
- Mexican Hat: curvature and reversal detection
- Morlet: cyclic, oscillatory

3. Entry Logic
Long entry occurs when:
- AB wavelet shows bullish structure (soft > medium > strong, medium rising)
- Selected entry expert approves (RAW / CF / AB / Majority)
- Wavelet condition: soft > strong AND medium crosses above strong

4. Exit Logic
Exit is independent from entry:
- Controlled by chosen exit expert
- Wavelet reversal condition: soft < strong AND medium crosses below strong
- Forced exit when AB trend turns neutral or bearish

5. Background Color (Regime)
- Green: bullish AB regime
- Red: bearish AB regime
- Gray: neutral/transition

6. How to Use
Step 1 – Choose entry wavelet
Daubechies: stable trend
Haar: breakout scalping
Mexican Hat: early reversals
Symlet: balanced
Morlet: cyclic markets

Step 2 – Choose exit wavelet
Mexican Hat: best precision
Daubechies: smooth exits
Haar: aggressive exits

Step 3 – Select entry/exit experts
CF only – fast fractional trend
AB only – stable long-memory trend
RAW only – pure price structure
Majority – safest, noise-filtered

Step 4 – Run the strategy
Entries occur only during AB bullish trend.
Exits occur on wavelet reversal or AB trend failure.

7. Why This Strategy Works
It fuses:
- Fractional calculus (memory)
- Wavelets (shape/curvature)
- Alligator ordering (trend hierarchy)

Result: high-quality entries, strong trend holding, noise-resistant signals.