I explain, review, test, and analyze a trading system suggested by No Nonsense Forex titled “Williams%R Indicator - Flip It”. VP does not include a specific system to trade this strategy so I took the concepts from his video to create a rigid rules based complete trading system that has been proven profitable over a series of 100 trades.
This video was requested by a viewer and I thought it was an interesting idea after reviewing the material. The Williams %R is typically a reversal indicator. But here we are going to use it as a trend continuation confirmation. So basically we are using the indicator in reverse to make a profit.
These trading systems can be ported over to many instruments such as Forex (FX), Cryptocurrency (Crypto), Options, Stocks, or anything that has a chart and a significant amount of volume and market participants.
If you are looking for trading systems to test out on your own here is a playlist of systems that I like: https://bit.ly/SystemsILike
WARNING: Be sure to do exhaustive backtesting and forward testing before you actually start trading real funds. For your convenience below is a link to the official Trader’s Landing backtesting spreadsheet and tutorial video.
Timestamps:
00:00 - Start
00:15 - Indicators
01:19 - Long Examples
02:11 - Short Examples
02:55 - Test
03:05 - Testing Results & Equity Curve
03:44 - Trader’s Landing Score
03:54 - Optimization
System Specifics
Instrument: Euro vs. US Dollar (EUR/USD)
Time Frame: 1 Hour (H1)
🏆 Trader’s Landing Score: 4
Indicators
Name: Williams %R
Settings: Default
By: TradingView Built-In
Link: https://www.tradingview.com/support/solutions/43000501985-williams-r-r/
Name: Ichimoku Cloud
Settings: Default
By: TradingView Built-In
Link: https://www.tradingview.com/support/solutions/43000589152-ichimoku-cloud/
Name: Exponential Moving Average (EMA)
Settings: 200 Period
By: TradingView Built-In
Link: https://www.tradingview.com/support/solutions/43000592270-exponential-moving-average/
Name: ATR Bands
Settings: ATR Upper: 2, ATR Lower: 2
By: AlexanderTeaH
Link: https://www.tradingview.com/script/uTetNB3s-ATR-Bands/
Long Entry
Price above the 200 EMA.
Price pulls back below the Kijun-Sen and then closes above the Kijun-Sen.
Enter when price closes above the Kijun-Sen and the Williams %R is above 20.
Short Entry
Price below the 200 EMA.
Price pulls back above the Kijun-Sen and then closes below the Kijun-Sen.
Enter when price closes below the Kijun-Sen and the Williams %R is below 20.
R:R
2:1
Where to place stop-loss
For Long’s: 2 times the ATR below the entry candle.
For Short: 2 times the ATR above the entry candle.
Indicators tested on this channel so far:
ATR Bands, Donchian Channels (DC), Double Exponential Moving Average (DEMA), Dynamic Structure Indicator, Exponential Moving Average (EMA), Heikin-Ashi Candles, Ichimoku Cloud, Money Flow Index (MFI), Interstellar Buy/Sell, Interstellar Trend, Multi Timeframe EMA, QQE (Qualitative Quantitative Estimation) Mod, Relative Strength Index (RSI), SSL Channel, SSL Hybrid, Stochastic (STOCH), Stochastic RSI, SuperTrend STRATEGY, Time Segmented Volume (TSV), VuManChu Swing Free, Waddah Attar Explosion V2, Weighted Average Price (VWAP), Williams %R
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