Williams R Breakout Strategy

This strategy seeks momentum bursts by watching Williams %R relative to its historical average. When the oscillator pushes far beyond typical readings, it may signal the start of a strong move.

Testing indicates an average annual return of about 91%. It performs best in the stocks market.

A long position is opened when %R climbs above the average plus Multiplier times an estimated standard deviation. A short position is taken when %R drops below the average minus the same multiplier. The trade closes once %R returns toward its average or a stop-loss is hit.

The approach caters to breakout traders who want early participation in emerging trends. Position risk is managed with a percentage stop based on the entry price.

Details

• Entry Criteria:
  • Long: %R > Avg + Multiplier * StdDev
  • Short: %R < Avg - Multiplier * StdDev
• Long/Short: Both sides.
• Exit Criteria:
  • Long: Exit when %R < Avg
  • Short: Exit when %R > Avg
• Stops: Yes, percent stop-loss.
• Default Values:
  • WilliamsRPeriod = 14
  • AvgPeriod = 20
  • Multiplier = 2.0m
  • CandleType = TimeSpan.FromMinutes(5)
• Filters:
  • Category: Breakout
  • Direction: Both
  • Indicators: Williams %R
  • Stops: Yes
  • Complexity: Intermediate
  • Timeframe: Intraday
  • Seasonality: No
  • Neural networks: No
  • Divergence: No
  • Risk Level: Medium