Automating Larry Williams’ Hidden Smash Day Reversal

Summary

The article turns Larry Williams’ Hidden Smash Day idea into explicit rules for an automated strategy. A bullish setup is an up-closing bar whose close lies in the bottom quarter of its own range; a bearish setup is the inverse, with the close in the top quarter. The following completed bar must close beyond the setup bar’s high or low to confirm an entry. Decisions are evaluated only when a new bar begins, so the setup and confirmation bars are complete.

The proposed Expert Advisor can trade long, short, or both, permits only one open position, and offers structural or ATR-based stops. A fixed reward-to-risk ratio defines the target, while sizing can be manual or based on a chosen share of account balance, calculated across instruments. The article describes the rule framework, code implementation, and tester configuration files, but the supplied text gives no substantive performance results. Its rules make the pattern reproducible; profitability still requires testing across instruments and periods, since settings and market conditions can affect outcomes.

Key ideas

• A Hidden Smash setup is defined by the close’s location within the bar range and its relation to the prior close.
• The setup becomes actionable only after a later completed bar closes beyond the setup bar’s extreme.
• The proposed system evaluates signals at new-bar openings to avoid using incomplete bars.
• Stops can follow the setup bar structure or use an ATR multiple, with targets based on a reward-to-risk ratio.
• The Expert Advisor supports fixed or risk-based sizing, configurable direction, and one position at a time.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.