Williams %R Reversal Signals with an ATR Direction Filter

Summary

This strategy uses Williams %R extremes to generate reversal entries and the direction of a short-period ATR as a confirming filter. A cross back above the oversold threshold triggers a long signal when ATR is rising; a cross below the overbought threshold triggers a short signal when ATR is falling. Each signal closes the opposing position and opens a new one, with the system designed to use the full account allocation.

The document describes a 60-period Williams %R, thresholds of -79 and -21, and a 5-period ATR. It gives BTC/USDT futures backtest settings but no performance evidence. The strategy has no built-in stop loss or take profit and relies on reverse signals to exit, exposing it to large drawdowns in persistent moves. It also warns of lag, frequent turnover and fees, parameter sensitivity, and the limited trend information provided by ATR direction alone.

Key ideas

• Williams %R threshold crossings define long and short reversal signals.
• Rising ATR confirms long entries, while falling ATR confirms short entries.
• Signals force a switch between long and short positions using full account allocation.
• The strategy has no stop loss or take profit and exits through an opposing signal.
• The document specifies BTC/USDT futures testing settings but gives no performance results.

Tags

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