Williams %R Pullback in Trend¶
What it does: Buys when Williams %R leaves oversold during an uptrend; exits when it leaves overbought. Williams %R shows where the price sits in its recent range (-100 to 0). This buys when it climbs back above -80 (leaving oversold) while the price is above the 4-hour 50-candle average.
Style: Mean reversion · Difficulty: Beginner · Risk: medium · Ready: 2 of 2 variants
When people use it: It tends to work on pullbacks in uptrends.
Where it struggles: It struggles in downtrends and strong moves where %R stays pinned at one end.
Markets it was written for: BTC, ETH, majors. Timeframes: 1h with 4h filter.
Open it in the Strategy Library (on the Strategies page), pick a variant, adjust the settings and press Add to my strategies. It becomes your own strategy: edit, backtest or trade it like any other.
Long¶
Buys when Williams %R leaves oversold during an uptrend; exits when it leaves overbought.
Labels: Mean Reversion, Long, Spot, Beginner, Medium
- Direction: Buy (long) · Market: spot
- Trigger: On candle close · Main timeframe: Auto (1h)
Entry
- IF WILLR(14) crosses above -80 (1h) and Price > EMA(50) (4h)
Exit: Indicator-Based Exit
- IF WILLR(14) crosses below -20 (1h)
- Loss controls: Stop-loss % 3%, Break-even stop after % 1.5%
Settings
| Setting | Default | Editable | What changing it does |
|---|---|---|---|
| %R length | 14 | Yes (sets 2 fields) | How many candles %R looks back. Shorter is jumpier (more signals); longer is calmer. Changes entry and exit. |
| Oversold level | -80 | Yes | How low %R must have been. Closer to -70 trades more often; closer to -95 waits for deeper dips. |
| 4h trend average | 50 | Yes | It only trades on the trend side of this average (buys above it; the short version shorts below it). Shorter allows trades sooner; longer is stricter. |
How it works (as shown in the app)
- Williams %R shows where the price sits in its recent range (-100 to 0). This buys when it climbs back above -80 (leaving oversold) while the price is above the 4-hour 50-candle average.
- It sells when %R drops back below -20 or at the stop-loss; after a 1.5% gain the stop moves to your entry price.
- It tends to work on pullbacks in uptrends.
- It struggles in downtrends and strong moves where %R stays pinned at one end.
- Trades on 1-hour candles, so fees matter.
Short (perp)¶
Shorts when Williams %R leaves overbought during a downtrend; closes when it leaves oversold.
Labels: Mean Reversion, Short, Futures, Medium, Backtest Only
- Direction: Sell (short) · Market: swap
- Trigger: On candle close · Main timeframe: Auto (1h)
Entry
- IF WILLR(14) crosses below -20 (1h) and Price < EMA(50) (4h)
Exit: Indicator-Based Exit
- IF WILLR(14) crosses above -80 (1h)
- Loss controls: Stop-loss % 3%, Break-even stop after % 1.5%
Settings
| Setting | Default | Editable | What changing it does |
|---|---|---|---|
| %R length | 14 | Yes (sets 2 fields) | How many candles %R looks back. Shorter is jumpier (more signals); longer is calmer. Changes entry and exit. |
| Oversold level | -80 | Yes | Closes the short when %R climbs back above this. Closer to -70 closes sooner; closer to -95 waits for a deeper fall. |
| 4h trend average | 50 | Yes | It only trades on the trend side of this average (buys above it; the short version shorts below it). Shorter allows trades sooner; longer is stricter. |
How it works (as shown in the app)
- Williams %R shows where the price sits in its recent range (-100 to 0). This shorts when it falls back below -20 (leaving overbought) while the price is below the 4-hour 50-candle average.
- It buys back when %R climbs back above -80 or at the stop-loss; after a 1.5% gain the stop moves to your entry price.
- It tends to work on bounces in downtrends.
- It struggles in uptrends and strong moves where %R stays pinned at one end.
- Trades on 1-hour candles, so fees matter.
- Shorting means you profit if the price falls and lose if it rises.
- Suggested leverage is at most 5x. On isolated margin, at 5x the exchange closes the position (liquidation) if the price moves about 19.6% against you, and you lose the margin you put into it. Keep your stop well inside that.
- For now this version runs in backtests only; paper and live futures trading are coming later.
Warnings¶
- "Backtest only for now: paper and live trading of shorts are coming later.": shown on short variants. They need perpetual or futures pairs.
- Some variants suggest leverage. On isolated margin a liquidation loses the margin in that position; keep any stop well inside the liquidation distance (the Trade Builder warns you when it isn't).
- Once added, the strategy's conditions get the usual condition checks. Messages show under each condition on the entry / exit conditions screen; setting errors start with the indicator's short name (for example "MACD: Fast must be between 1 and 1000") and block saving, while the other warnings never block saving and repeat in the strategy's Entry or Exit section. See the indicator pages below for each one.
- "You already have this strategy with these settings (…). Change a setting to add another copy.": shown on the variant's page in the Strategy Library when you already added this variant with the same settings.
Good to know¶
- After you add it, the strategy keeps the library's trigger and an Auto main timeframe; you can change both in the builder. Nothing links it back to the library, except that the builder still shows the library's explanations in the info bubbles.
- Changing a setting before adding it also changes the saved name, so you can tell copies apart.
- Past results don't predict future ones. Try it in a backtest and on paper before using real money.
- Indicators used: EMA, WILLR.