Williams %R Trading Strategy — Williams Percent Range vs RSI (Backtest, Indicator & Systems)

Quantified Strategies
1 min readOct 12, 2023

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Williams %R does work. In this article, we explain how to use Williams %R in a trading strategy, and finally, we backtest trading strategies to see if Williams %R works. Does it work? Our conclusion is that Williams %R seems to work pretty well.

We backtest the Williams %R trading strategy on the S&P 500 (SPY). Entry is on the close when the Williams %R is below -90 and exit is when today’s close is higher than yesterday’s high or when the Williams %R closes above -30.

By using optimization we get, perhaps as expected, the best results on short lookback periods. We used a minimum lookback period of two days and a maximum of 25 days. All tests gave a profit factor of two or more, except for 25 days which produced 1.9.

The best result is by using a two-day lookback period. This gives this equity curve below.

Williams %R Strategy

You can find more info about this trading strategy here:
https://www.quantifiedstrategies.com/williams-r-trading-strategy/

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Quantified Strategies
Quantified Strategies

Written by Quantified Strategies

We share free backtested trading strategies daily (some articles written using AI). Our best trading strategies and articles are found on our website (non-AI).