Proof WILLIAMS % R is Reliable when used like this [mean reversion]
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- Опубликовано: 30 май 2024
- Here's a mean reversion trading strategy using Williams percent R (Williams % R or Williams range indicator).
Check out this other video which shows you a profitable strategy using BOLLINGER BANDS • This Bollinger Band St...
In this video I demonstrate an indicator created by Larry Williams. Williams Percent R, also called Williams range indicator or Williams percent range is an oscillator similar (but not the same) to Stochastics or RSI relative strength index.
In this video I show you a way to use Williams % R to detect overbought and oversold levels, creating a mean reversion trading strategy.
I actually end up with 2 strategies using the same signals. One is a day trading strategy and one is a swing trading strategy.
Grab 3 favourite strategies for FREE in my new 22 page Beat the Markets Strategy Guidebook here: www.thetransparenttrader.com/...
WEBSITE: www.thetransparenttrader.com/
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EMAIL ME: jarrod@thetransparenttrader.com
DISCLAIMER:
I am not a financial advisor and I am not offering you financial advice. I am not regulated in any way. The purpose of the content I provide is for educational purposes only.
Any information you receive is based on my own knowledge and experience in the financial markets and how you act on the information provided is your own responsibility.
I cannot be held responsible for any losses you may incur as a result of ideas taken from my content provided.
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Guys, I hope you find this video about Williams % R useful!
Great job always enjoy your channel.
Thanks a lot for sharing - that you provide a strategy, timeframe and various permutations ALL CLEARLY TESTED means your videos are an absolute rarity and cut above in the sea of online trading videos. Do please keep them coming!
Mean reversion is king ..and you sir are the best teacher of it on youtube!
I have been playing with a 34 period Williams %R on the ASX200..... using trend lines works well, and using the 50 level as a support/resistance line.
My favorite indicator is Williams%R , and you explain a new informative article of upper, lower 10/90 , very informative article in this video
Quality content again
Love your channel
Larry is a legend
Glad you're enjoying it.
Hi! Thanks for sharing! I am a bit confused about the rules for the last filter you used (strength and weakness filter). Couldn't find an answer in the video.
Best content. Thanks!
Hi Jarrod , thank you!
What is the maximum drawdown in pips of this strategy?
What i like about this channel is the data you give not just bs hindsight
Thanks!
Technically past data is hindsight though. But 10+ years period is very good sample size to evaluate a trading strategy
@@duonganhquan6273 depends on how you roll the test. If you just optimize through the entire thing you'll end up either overfitted or underfitted
Hi Jarod,
thanks for another video, I am currently testing the strategy and it looks good.
I am just not sure what you mean by adding filter strong / weak previous day. Could you be more specific about it please?
Giving thumbs up👍👍👍
Wondering what happens when you combine multiple indicators into ine strategy so like RSI + Williams %R
Mean reversion will get you wrekt in a trending market
Dziękujemy.
"Even more similar to stochastics" is an understatement. It's identical to the the fast stochastics when taking away smoothing, except for a constant offset. Not sure if Larry Williams didn't know about the stochastic oscillator when he developed his oscillator or what's up with that.
Has different calculation
@@raymondphilip6232 Drop both on the chart and you will see it's identical. You can transform the calculations in a way so that they are the same.
@@jan7356 identical but still, they are not the same. Have different calculation and by calculation im not talking about the parameters of the respective indicators.
Anyway do you trade systematically too? Or are you a hybrid?
@@raymondphilip6232 Maybe that's why Larry Williams did not realize that it's the same. He looked at the calculation and came to the conclusion that it's different. But it's not so easy. You can transform equations without changing the numbers that come out. x = 2*y + 4 is the same as x/2 = y + 2. They describe the same relationship. Anyway. When you drop them both on the chart. The fast stochastics needs to be unsmoothed, You will see that they are totally identical. And that's not a coincidence, that's because the equations for both indicators can be transformed into each other.
@@jan7356 i don't think he doesn't know that stochs is a thing.
Anyways the formula:
Stochs %K = (Close now - Low )/ Range
Williams %R =( High now - Close )/Range *-100
Is it identical? Yes
The same? No
Stochs and %R have proven to be inconsistent why?
The closer stochs is to big number = close now is far away from the lowest low of previous time ago = bullish
The closer %R is to big number = close now is far away from the highest high of previous time ago = bearish
Then there is a twist, %R *-100 ,, which inversed the indicator and now big number on %R = far away from lowest low of previous time ago = bullish
Both identical but not mathematically the same. One utilizes Highest high and another uses Lowest low
Looks good, nice steady upwards curve. I can't figure what you mean by a previous strong day/ weak day as your filter. Like the range of the previous day?
Yes I was wondering as well. He seems to have brushed over this very important aspect.
Thanks Jared, what if you was to add a 200ema and only buy if below and sell if above when correlating with the Williams indicator ..... was doing a little back testing and this seemed to give better results.
It's something worth testing! If I get round to it I'll share the results. Thanks Andrew!
I signed up for your course but can't figure out how to ask you questions when I have them?
My first question is is it available only in audio or is it available on print somehow
Hi Terry, please email me jarrod@thetransparenttrader.com and i'll be happy to answer your questions and forward the links you need.
honestly the number of subscribers of your channel is much lower than it should have been due to the quality of your videos for actual traders.
i have made some profit due to some of your concepts but the situation is not steady due to people's normal weakness(if you are a actual trader you know what i mean), and that is why automatic trade has its own advantages.but hand made trades could make huge profit in short time compare to auto-trade. especially in futures markets.
anyway, thanks for your sharing man. thumbs up bro.
used it. love it....but sometime it moves ahead of price. so be aware...
Be sure and keep that camera changing viewpoints, Eliza.
great video and info. You can try to zoom in the camera and buy a really good mic.
nice
What you showed , seems like losing trades on chart
The 60-period works well for me
💞
Stochs rsi Williams% ...........cmon they are all so similar Jarrod......
This works better in sideways market. In trending situations it fails.device a strategy accordingly.
Don't be fooled newbies
Profit 4% per year. in the best case, is absolute nonsense!
And 300 pips SL?
Mean reversion is real, but trading with something like williams R or RSI alone is something that even a dog can do. It obviously doesnt work long run as anyone can automate the strategy in less tna 5 minutes since 1990. XD.
This truly works for me in strong trends with healthy pullbacks, enter in the next engulfing candle and ride it out
Plus if you add trendlines, Support/Resistance and Stoch RSI it's very profitbale
@@Algoo-X 4 variables maybe? A fund could have easily automated that if it was truly profitable. Drawdowns of such strategy would render it useless to institutional risk standards.
Sir please accept Love and Respect from India ....
Can’t get past your tight coat. Unbutton it and breathe ha. 250 pip stop but when to exit? Just at the end of the day? Like your accent.