Williams R Mean Reversion Strategy (Python)

Williams %R oscillates between 0 and -100 to show when price closes near the extremes of its recent range. This strategy fades those extremes once the indicator stretches far from its own average. A long trade triggers when Williams %R falls below the average minus DeviationMultiplier times the standard deviation. A short trade is taken when it rises above the average plus that multiplier. Exits occur when Williams %R moves back toward its average level. The approach suits traders who rely on momentum exhaustion to time entries. A protective stop-loss limits risk if price keeps moving to new extremes.

• Entry Criteria:

• Long: %R < Avg - DeviationMultiplier * StdDev

• Short: %R > Avg + DeviationMultiplier * 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

• AveragePeriod = 20

• DeviationMultiplier = 2m

• CandleType = TimeSpan.FromMinutes(5) [*]Filters:

• Category: Mean Reversion

• Direction: Both

• Indicators: Williams %R

• Stops: Yes

• Complexity: Intermediate

• Timeframe: Intraday

• Seasonality: No

• Neural networks: No

• Divergence: No

• Risk Level: Medium