Williams %R Strategy

Discover a simple mean reversion strategy with Williams %R for stock ETFs. This system uses two clear rules for entry and exit, aiming for high win rates on dai

Published · Updated · Methodology: Technical Indicators

Part of: Algorithmic & Automated Trading

  • Methodology: Technical Indicators
  • Content type: strategy
  • Timeframes: Daily
  • Markets: NASDAQ 100 (QQQ ETF), S&P 500 (SPY ETF), Stock ETFs, Futures (implied improvement)

Indicators used

  • Williams %R

Source video

Decoded from: This Algo Strategy Has Only 2 Rules And 72% Win Rate by Quantified Strategies — watch the original

Key timestamps:

  • 0:00 - Introduction: The 72% Win Rate Strategy
  • 0:54 - Rule #1: The Buy Signal (Williams %R)
  • 1:09 - Rule #2: The Exit Strategy (Sell Rule)
  • 1:23 - Understanding the Williams %R Indicator
  • 2:11 - Risk Management & The "No Stop-Loss" Rule
  • 2:48 - Backtest Results: QQQ (NASDAQ 100)

Strategy overview

Williams %R is a momentum oscillator that measures where the current close sits within the high-to-low range of a recent lookback window, flagging when a market has stretched into overbought or oversold territory. This entry decodes a Quantified Strategies video that uses that single oscillator as the backbone of a deliberately stripped-down daily system — one built around just two rules, an entry and an exit.

The framing is the selling point. Titled "This Algo Strategy Has Only 2 Rules And 72% Win Rate", the video leans on minimalism and a headline hit-rate drawn from a backtest on QQQ, the Nasdaq-100 ETF. The angle worth noting isn't the number but the design choices behind it: a short-term mean-reversion logic that buys into weakness rather than chasing breakouts, and an unusual decision to run without a fixed stop-loss, leaning on the exit rule to close positions instead. Treat the 72% as a channel headline tied to one instrument and one historical window, not a promise.

Systems like this live or die on details the oscillator alone doesn't settle — what counts as oversold, how long a position is held, and how a no-stop-loss design behaves when a mean-reversion trade keeps running against you. The source video walks through its own two rules and the reasoning for skipping the stop; this page points to that video as the reference for how Quantified Strategies defines and tests the setup on the Nasdaq 100.

Topics

williams r strategy · mean reversion strategy · technical indicators · trading strategy · pine script · tradingview strategy · stock etfs · qqq etf · spy etf · daily trading strategy · futures trading strategy

Frequently asked questions

What is Williams %R in trading?

Williams %R is a momentum oscillator that shows where price closes relative to its recent high-low range. Readings near the bottom of its scale are read as oversold and near the top as overbought, which is why it's commonly used for short-term mean-reversion timing.

What makes this Williams %R strategy notable?

The Quantified Strategies video frames it as a minimal system with only two rules — one entry and one exit — applied on the daily timeframe. It also uses an unconventional risk approach that deliberately runs without a fixed stop-loss.

Does this strategy really have a 72% win rate?

72% is the figure in the video's title, based on a backtest on QQQ (the Nasdaq-100 ETF). A hit-rate from one instrument over one historical period is not a guarantee of future results, and win rate alone says nothing about how large the wins are versus the losses — verify it with your own testing.

How can I test a Williams %R strategy myself?

Backtest it on historical daily data before committing capital, paying close attention to the exit logic and the effect of trading without a stop. Strategy Decoder extracts the structure of strategies like this from video sources so you can evaluate and test them on TradingView.

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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