PercentR Thresholds for an Intraday Reversal Strategy

Summary

This strategy uses Williams Percent R to classify recent price position and proposes an intraday long entry when the reading is between the stated low and high thresholds. Percent R ranges from 0 near the recent high to −100 near the recent low. The document also introduces a high–low channel with a midpoint, though the supplied entry rule is expressed through Percent R rather than explicit channel crossings. Positions are intended to close before the session ends.

The settings list thresholds of −87 and −20 and a lookback length of 3. A BTC/USDT spot backtest configuration is provided for November 2023, but no returns or other outcome data are stated. The source’s exit condition is based on a comparison of the current bar’s low and high, which is generally true for ordinary bars; this makes the claimed end-of-session behavior unclear. The strategy may miss reversals or produce few signals, and the document recommends evaluating stops, thresholds, timing, and additional indicators before relying on it.

Key ideas

• Percent R measures the close’s location within a recent high–low range on a scale from 0 to −100.
• The stated long-entry rule requires Percent R to fall between −87 and −20.
• The strategy describes closing positions before the session ends, but the supplied exit rule does not clearly implement that timing.
• The published backtest setup has no reported performance results.
• Threshold selection and failed reversals are key sources of risk.

Tags

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