EMA Confirmation and Williams %R Filters for a Sweep-Based Trading Bot

Summary

This document presents part of an automated trading strategy built around price sweeps of recent swing levels. A low below the prior lookback lows records a potential long sweep; a high above recent highs records a potential short sweep. It also tracks successive sweep extremes to identify higher lows and lower highs. A Hull moving average is used to assess short-term direction, while a 115-period hourly exponential moving average supplies a higher-timeframe trend filter. Williams %R and its EMA track momentum and whether an overbought or oversold condition occurred within a recent window.

The header describes the system as allowing a longs-only mode and names a five-to-one reward-to-risk setting, but the supplied source stops partway through the sweep logic. It does not show the final entry rules, exits, or backtest results, so the complete strategy and its performance cannot be evaluated. The visible code provides parameter defaults and indicator calculations, not evidence that the filters improve outcomes. Sweep definitions and indicator thresholds would need testing across instruments and market conditions, with attention to execution costs and risk sizing.

Key ideas

• The strategy marks a potential sweep when price moves beyond recent highs or lows.
• It tracks successive sweep extremes to identify higher lows and lower highs.
• A Hull moving average and an hourly EMA are used as directional filters.
• Williams %R relative to its EMA and recent extreme readings form additional momentum context.
• The provided source is truncated before complete entry and exit rules, and includes no performance results.

Tags

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