Naked Close Strategy (Pull Back Pattern) with ADX and Moving Average Filter

Discover the Naked Close Strategy for Gold Futures on a Daily timeframe, enhanced with ADX and Moving Average filters for optimized entries and exits.

Published · Updated · Methodology: Technical Indicators

Part of: Moving Average Strategies

  • Methodology: Technical Indicators
  • Content type: strategy
  • Timeframes: Daily
  • Markets: Gold Futures

Indicators used

  • ADX
  • Moving Average

Source video

Decoded from: Naked Close Strategy by Larry Williams, with 60 years out of sample!! by Ali Casey | StatOasis — watch the original

Key timestamps:

  • 0:00 - Naked Close Setup
  • 0:30 - Buy setup description
  • 0:58 - Sell setup description
  • 1:28 - Entry signal definition
  • 1:47 - EasyLanguage Code
  • 2:00 - Entry order with filter
  • 2:15 - Exit after number of bars
  • 3:18 - Optimizing Exit Bars for Long/Short sides
  • 6:05 - Strategy Filter purpose & Optimizations
  • 6:20 - ADX filter optimization
  • 7:50 - Moving Average filter optimization
  • 10:46 - Adding same filter to Long/Short sides

Strategy overview

A moving average filter does one job in a system like this: it decides when a setup is allowed to trade, not when it fires. That distinction is the whole shape of this entry — the signal is a price-action pattern attributed to Larry Williams, the "naked close" pullback, while the moving average and ADX sit around it as permission conditions rather than as the reason to enter. It runs on the daily chart, which places it in swing-trading territory rather than the intraday territory most indicator stacks occupy.

The source is Ali Casey's "Naked Close Strategy by Larry Williams, with 60 years out of sample!!" on the StatOasis channel, and it is unusually compact — its timestamped outline runs to just past the two-minute mark, with the buy and sell versions of the pattern both covered inside the first ninety seconds. The running order is the informative part: setup, buy side, sell side, entry signal, code, and only at the end the entry order "with filter." The filtering arrives as the last layer, bolted onto a setup that has already been fully described without it — and the two directions are not presented as mirror images, since the video specifies each side separately and does not apply the same filtering to both.

Two things are worth naming plainly. The code segment is EasyLanguage, which places the video in the TradeStation/MultiCharts world rather than Pine Script — the logic ports, the file does not. And "60 years out of sample" is a statement about the length of a test, not about its result: the title names no instrument, no data source and no performance figure, and a long history lowers the odds of a fluke without making anything forward-valid. This entry carries no decoded mechanical rule set; what it offers is the concept and the source's framing of it.

Topics

naked close strategy · adx strategy · moving average strategy · gold futures strategy · daily trading strategy · technical indicators · trading strategy · pine script · tradingview strategy · swing trading · gold futures trading strategy · price action

Frequently asked questions

What is the "naked close" pullback pattern?

It is a price-action setup associated with Larry Williams that uses where a bar closes to time entry into a pullback, rather than relying on an indicator reading. The source video defines the buy version and the sell version separately, in its opening minute and a half.

Do ADX and the moving average generate the entry signals here?

No — in this construction they act as filters. The moving average serves as a trend-direction condition and ADX as a trend-strength condition, both wrapped around a price pattern that produces the signal on its own. The video reflects this by introducing the filtered entry order as its final step, after the unfiltered setup has already been laid out.

What does "60 years out of sample" mean, and does it make a strategy reliable?

It refers to running a rule set across roughly six decades of historical data rather than only the stretch it was designed on. A long history makes a curve-fit result less likely, but it remains a backtest — and the title states no instrument, no data source and no performance figure, so the claim describes the scope of the test rather than an outcome anyone should expect.

What timeframe does this run on, and how would I test it?

The daily chart. Because the source video's code is written in EasyLanguage, testing it exactly as presented means a TradeStation-family platform; reproducing it anywhere else means rewriting the logic first. Strategy Decoder catalogs strategies extracted from video sources so you can compare approaches like this one before investing time in building them.

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.

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