This strategy is an advanced algorithmic trading system based on Larry Williams’ classic Volatility Breakout concepts. By combining short-term price expansion with a Williams %R Momentum Loop and a 200 Daily EMA Trend Filter, this algorithm successfully eliminates false breakouts (fakeouts) and maximizes the Profit Factor across Gold (XAUUSD), BTCUSD, and EURUSD.

How It Works

1. Volatility Breakout Core: It tracks yesterday’s range (High - Low). Applies a backtest-proven 0.75 multiplier and projects it from today’s open price to establish definitive LONG and SHORT trigger lines.
2. Williams %R Filter: Breakouts must be backed by institutional momentum. The system ensures Williams %R has crossed over the oversold zone (-80) or under the overbought zone (-20) within an adaptive 6-bar lookback window.
3. 200 Daily EMA Filter: Strictly trades with the macro trend. It only triggers LONGs above the 200 EMA and SHORTs below it, bypassing exhausting sideways chop.

Risk Management

• Fixed Stop Loss (SL): Permanently locked to Today’s Market Open Price for immediate capital protection.
• Dynamic Take Profit (TP): Deploys a volatility-adjusted 2.5 ATR target to capture massive trend extensions.

Historical Backtest (XAUUSD)

• Profit Factor: 1.590 - 1.722
• Maximum Drawdown: 11.8% - 13.8%
• Win Rate: 31.69% - 33.83%