Born 1942 · Futures · Trader, author and indicator creator
Larry Williams: Trading Method and Key Ideas
Known for winning the 1987 World Cup of futures trading and for the volatility breakout and Williams %R.
Who they were
Larry Williams has traded futures since the 1960s and written numerous books, including "Long-Term Secrets to Short-Term Trading" (1999). He created the Williams %R oscillator and other indicators.
In 1987 he won the Robbins World Cup Championship of Futures Trading with a reported return of over 11,000% in twelve months, a record that stood for years. That kind of return came with very high risk, which he has acknowledged.
Principles and rules
1. Volatility breakouts
A strong move away from the open, measured as a fraction of the previous range, tends to continue during the day.
2. Short-term patterns
Specific day-of-week and bar patterns can give a statistical edge over short horizons.
3. Williams %R
An oscillator showing where the close sits within the recent high-low range, used to spot overbought and oversold conditions.
4. Money management decides survival
The same signals can make or destroy an account depending on position size.
Key lessons
- Measure volatility instead of guessing.
- Extreme returns come from extreme risk.
- Simple rules can be tested and improved.
Strategies from this method
How to practise it
The volatility breakout strategy page has the rules. In Candlemind use the day map for the previous day's range and a pending stop order at the open plus a fraction of it.
Frequently asked questions
What is Larry Williams famous for?
Winning the 1987 Robbins World Cup of futures trading and creating the Williams %R indicator.
What is Williams %R?
A momentum oscillator from 0 to −100 that compares the close to the high-low range of a lookback period, usually 14.
Summaries and paraphrases of public books and interviews, for education. Not investment advice.