Williams %R Crossovers Filtered by a Long-Term Moving Average

Summary

This short-term strategy combines Williams %R threshold crossings with a 200-period simple moving average filter. It enters long when the oscillator crosses upward through a level below -50 and price is above the average; it enters short on a downward crossing above -50 when price is below the average. Exit rules close positions at fixed take-profit or stop-loss distances. The listed settings include a 14-period oscillator, a crossing threshold, and separate profit and loss distances.

The document presents the approach as a way to combine overbought/oversold signals with a directional filter, and suggests trying other averages, indicators, and exit rules. It also notes indicator lag, missed trends, whipsaws from tight stops, and the need to tune parameters. A BTC-USDT futures backtest period is specified, but no results are reported. The description mentions trailing stops, while the supplied rules implement fixed price targets and stops, so that benefit is not demonstrated by the provided logic.

Key ideas

• Williams %R crossings around the -50 region generate entry signals.
• The strategy takes long signals only above the 200-period average and short signals below it.
• Positions close at fixed take-profit or stop-loss distances.
• Oscillator and moving-average lag can delay signals, while noise can trigger whipsaws.
• The published backtest settings do not include performance results.

Tags

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