BACKTESTING · WILLIAMS %R REVERSAL

Williams Percent R Reversal Backtest in Crypto: Fees, Slippage and Break-Even Costs

Williams %R measures where the close sits in the recent high-low range. Reversal rules on it behave like a fast stochastic, with the same cost problem.

Short answer

Williams %R = (highest high − close) ÷ (highest high − lowest low) × −100, ranging from 0 to −100. A reversal rule buys when %R rises back above −80 after being below and exits near −20 or on a stop. Like the stochastic, it reaches extremes often in trends, so add a trend filter and test thresholds. Compute break-even cost, use closed bars and report results by market regime; reversal rules usually do best in ranges and worst in trends.

Break-even cost

ItemValue (illustrative)
Trades300
Gross avg per trade+0.17%
Fees (2 × 0.05%)−0.10%
Slippage (2 × 0.03%)−0.05%
Net avg per trade+0.02%
Break-even round-trip cost0.17%
Williams %R Reversal: edge vs cost per trade (%)Williams %R Reversal: edge vs cost per trade (%): Gross edge 0.17 %; Fees 0.10 %; Fees + slippage 0.15 %.WILLIAMS %R REVERSAL: EDGE VS COST PER TRADE (%)Gross edge0.17 %Fees0.10 %Fees + slippage0.15 %
Edge per trade versus cost per trade. Original ChartsPod editorial graphic.

By regime

RegimeTradesNet avg (illustrative)
Range160+0.12%
Uptrend70+0.05%
Downtrend70−0.14%
Illustrative net avg by regime (%)Illustrative net avg by regime (%): Range +0.12 %; Uptrend +0.05 %; Downtrend -0.14 %.ILLUSTRATIVE NET AVG BY REGIME (%)Range+0.12 %Uptrend+0.05 %Downtrend-0.14 %
Reversal rules depend on regime. Original ChartsPod editorial graphic.

Conclusion

Related: Stochastic RSI Reversal Backtest in Crypto: Fees, Slippage and Break-Even Costs, CCI in Crypto: Why the Value Changes Before Candle Close.

Backtest the williams %r reversal rule with costs in ChartsPod.

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Compute break-even cost, use closed bars and report results by market regime; reversal rules usually do best in ranges and worst in trends.

Put Williams Percent R Reversal Backtest in Crypto next to price, flow and positioning in one workspace.

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Questions readers ask

How is Williams %R calculated?

(Highest high − close) ÷ range × −100.

Which thresholds?

−80/−20 are common; test them.

Does it work in trends?

Often poorly; check by regime.

Sources and methodology

Backtest cost logic follows TradingView's Pine Script strategy documentation; indicator definitions are standard. All performance numbers are illustrative examples of the method, not results of real tests.

  1. TradingView Pine Script: Strategies — simulated fills and assumptions.
  2. TradingView Pine Script: Repainting — live vs historical calculation.
  3. ChartsPod documentation — guides for order flow, derivatives, alerts, backtests, journal and workspaces.

This article explains research tools and workflows. It is not financial advice, does not recommend buying or selling any asset and does not predict prices. Crypto derivatives carry a risk of rapid and total loss of margin.

CHARTSPOD EDITORIAL EDITION · RESEARCH AND EDUCATION ONLY · NOT FINANCIAL ADVICE.