Stock Predictor trading strategy

Williams %R Change Direction

This strategy buys when Williams %R is below a lower limit w (−90 by default) and turns upward, and sells when %R is above an upper limit v (−10 by default) and turns downward.

Strategy group

Williams %R strategies

Based on

Williams %R

Typical parameters

w = −90, v = −10, p = stop-loss %

A stop-loss sell signal is also included: it is triggered when the closing price falls p percent below the last buying price.

Trading signals

• Buy when Williams %R is below w and turns upward.
• Sell when Williams %R is above v and turns downward.
• Stop loss: sell when the closing price falls p percent below the last buying price.

Strategy rules

IF %R[t-1] < w AND %R[t] > %R[t-1]
   THEN GO LONG
IF %R[t-1] > v AND %R[t] < %R[t-1]
   THEN GO SHORT
IF C(t) < BUY_PR * (1 - p/100)
   THEN SELL

Where %R[t] is today’s Williams %R, [t-1] yesterday’s, v > w; C(t) is the closing price. BUY_PR is the last buying price and p is the stop-loss percentage.

See also: how the Williams %R indicator is calculated.