Larry Williams Strategy (EMA 50, Moving Average of Lows, Moving Average of Highs)

Explore the Larry Williams long-only strategy for S&P 500 Futures on a 30-minute timeframe, using EMA 50 and Moving Averages of Lows for entry signals.

Published · Updated · Methodology: Technical Indicators

Part of: EMA Strategies

  • Methodology: Technical Indicators
  • Content type: strategy
  • Timeframes: 30 minutes
  • Markets: Futures, S&P 500 Futures (ES)

Indicators used

  • EMA
  • Moving Average of Lows
  • Moving Average of Highs

Source video

Decoded from: 🤑 Pruebo la ESTRATEGIA con la que Larry Williams ganó 1.000.000$ by Secretos del Mercado — watch the original

Key timestamps:

  • 0:00 - Introduction to Larry Williams' strategy
  • 2:00 - NinjaTrader platform introduction
  • 3:00 - Strategy rules overview
  • 3:20 - Entry rule: EMA 50 condition
  • 3:40 - Entry rule: Moving Average of Lows touch
  • 4:30 - Exit rule: Moving Average of Highs touch
  • 5:00 - Programming interpretation of 'touch'
  • 5:40 - End-of-day exit rule
  • 6:00 - Backtest period and stop loss
  • 6:50 - Backtest results and commissions
  • 7:30 - Discussion on poor results and market changes
  • 9:30 - Importance of backtesting and strategy modifications
  • 10:00 - Modified strategy results

Strategy overview

Exponential moving averages exist to compress recent price into one adaptive line, and most EMA systems differ only in the job that line is given — here it is the least glamorous one, acting as a gate rather than a signal. What distinguishes this entry is not the average but the attribution: the source video from the Spanish-language channel Secretos del Mercado stakes its entire premise on a name and a number, "🤑 Pruebo la ESTRATEGIA con la que Larry Williams ganó 1.000.000

quot;, tying the setup to the futures-competition run Williams is best known for. The framing is first-person testing, not teaching — a trader taking a famous method to a chart to see what it does.

The structural detail worth noticing is that the two companion averages are not built from closing prices. One tracks lows, the other tracks highs, so together they trace a narrow envelope of each bar's extremes instead of a smoothed centre line — a band that reacts to where price actually reached rather than where it settled. The chapter list gives entry and exit their own average, which makes this a two-edged construction: the trade is framed by moving between boundaries of the same band while the slower EMA decides whether the band should be traded at all. The demonstration runs on 30-minute charts inside NinjaTrader, and the first three minutes go to the Williams story and the platform tour before any rule is named at all.

What is on record here is a frame, not a system. The chapters run intro, platform, rules overview, two entry conditions, exit — and then stop: no results segment despite the "I test it" premise, no short-side mirror, no position sizing or risk chapter, and no extracted rule set behind the million-dollar headline. That gap is worth holding onto for a second reason, too — setups that circulate under a famous trader's name are almost always second-hand reconstructions, and the attribution here belongs to the channel rather than to any documented account of what Williams traded.

Topics

larry williams strategy · futures trading · es futures · s&p 500 futures · 30 minute strategy · pine script · trading strategy · technical indicators · moving average strategy · long only strategy · tradingview strategy · ema strategy · scalping strategy · algorithmic trading

Frequently asked questions

What is the "Larry Williams strategy" in this video?

It is a moving-average band setup that the channel attributes to Larry Williams, pairing a slow EMA used as a trend filter with two short averages drawn from highs and lows. The attribution is the video's own framing, tied to the trading-competition run Williams is known for, rather than a documented record of his methods.

Why use moving averages of highs and lows instead of closing prices?

Averaging highs and lows produces two lines that bracket price as a channel of extremes, rather than a single line through its centre. The band widens and narrows with the range of recent bars, which gives a system two reference edges to work with instead of one crossover point.

What timeframe and platform does the source video use?

The walkthrough is done on 30-minute charts and demonstrated inside NinjaTrader, a futures-oriented platform, rather than on a browser charting tool.

Does this page contain the complete rules of the strategy?

No — there is no extracted rule set on record for this entry, so this page covers the concept, the source video's structure, and how the setup is framed. Strategy Decoder catalogues strategies from video sources and extracts their structure where the source makes it possible; for this one, the video's own chapters are the reference.

About this strategy page

This trading strategy was decoded by Strategy Decoder's AI from a public YouTube trading video and turned into a structured, reviewable specification. In the interactive app this page shows the full entry and exit logic, risk management settings, the indicators involved with their parameters, AlgoWizard-compatible logic and a Pine Script export ready for TradingView backtesting — plus an automated backtest verdict when one has been computed for this strategy.

Strategy Decoder catalogs 2,229 decoded strategies. Each one is extracted with confidence scoring, cross-linked to the indicators it uses, and kept up to date as new videos are processed daily. Load this page with JavaScript enabled to use the interactive tools, or start from the strategy explorer to filter by methodology, market and timeframe.

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