Williams %R Threshold Signals with Configurable Stops and Trading Windows

Summary

This strategy calculates Williams %R over a configurable lookback and enters long when the indicator crosses upward through -80 or short when it crosses downward through -20. It offers configurable take-profit and stop-loss distances, optional trading hours, a window around the top of each hour, and controls for long-only, short-only, or both directions. The listed defaults use a 21-period indicator, 13-period EMA smoothing, and 60-tick profit and loss exits. The published test uses BTC/USDT futures on four-hour bars with a 15-minute base period for May 2024.

The EMA-smoothed indicator is plotted, but the source uses raw Williams %R for its entry conditions. Likewise, stops and targets are set as tick distances rather than described as dynamically adjusted levels. The source applies the same exit command when there are open trades, without clearly distinguishing long and short exits. No backtest performance results are included. The text cautions that threshold signals may misfire in choppy markets, time restrictions can exclude trades, and parameter tuning can overfit.

Key ideas

• An upward cross through -80 triggers a long signal, and a downward cross through -20 triggers a short signal.
• The strategy offers tick-based profit and loss exits, direction controls, and optional time filters.
• The source signals on raw Williams %R even though it also calculates and plots an EMA-smoothed value.
• The published configuration tests BTC/USDT futures on four-hour bars over May 2024.
• No performance results are supplied, and the document warns about false signals and over-optimization.

Tags

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