Williams %R Cross Strategy with 200 MA Filter

Jun 18, 2023

1. The script is a trading strategy based on the Williams %R indicator and a 200-period moving average (MA) filter.

2. The user can input the length of the Williams %R indicator (`wrLength`), the threshold for %R crossing (`crossPips`), the take profit level in pips (`takeProfitPips`), and the stop loss level in pips (`stopLossPips`).

3. The script calculates the Williams %R using the `ta.highest` and `ta.lowest` functions to find the highest high and lowest low over the specified length (`wrLength`).

4. It also calculates a 200-period simple moving average (`ma200`) using the `ta.sma` function.

5. The entry conditions are defined as follows:
- For a long entry, it checks if the Williams %R crosses above the -50 line by a threshold of `crossPips` and if the close price is above the 200-period MA.
- For a short entry, it checks if the Williams %R crosses below the -50 line by a threshold of `crossPips` and if the close price is below the 200-period MA.

6. The exit conditions are defined as follows:
- For a long position, it checks if the close price reaches the take profit level (defined as the average entry price plus `takeProfitPips` in pips) or the stop loss level (defined as the average entry price minus `stopLossPips` in pips).
- For a short position, it checks if the close price reaches the take profit level (defined as the average entry price minus `takeProfitPips` in pips) or the stop loss level (defined as the average entry price plus `stopLossPips` in pips).

7. The script uses the `strategy.entry` function to place long and short orders when the respective entry conditions are met.

8. It uses the `strategy.close` function to close the long and short positions when the respective exit conditions are met.

The script allows you to customize the parameters such as the length of Williams %R, the crossing threshold, take profit and stop loss levels, and the moving average period to suit your trading preferences.