How He Earned $1.1 Million in Just 12 Months with This Strategy
The Lw Volatility Breakout Strategy: How Larry Williams Turned $10,000 into $1.1 Million
Meet Larry Williams, a professional trader who achieved an astounding feat of turning $10,000 into $1.1 million in just 12 months of trading. That’s an incredible 11,300% return on investment! Naturally, the question arises: how did he do it? In this article, we will delve into the strategy Larry used to achieve such massive gains and reveal the exact trading strategy he employed.
The Donchian Channels Indicator
The key component of Larry’s strategy is the Donchian Channels indicator. To add this indicator to your chart, simply go to the indicators tab and search for Donchian Channels. Once added, you will need to adjust the settings for optimal performance.
For the 5-minute timeframe, which Larry used for this strategy, the recommended settings are a length of 96. Additionally, changing the colors of the lines to red can make them easier to distinguish. It’s important to note that if you are using a different timeframe, you should conduct your own testing with different indicator values.
The Donchian Channels indicator consists of three lines. The middle line acts as a mean reversion point for the market, attracting the price like a magnet. It also provides insight into the momentum of the chart – above the line indicates a bullish trend, while below the line suggests a bearish trend. The upper and lower bands can act as support and resistance levels, as well as breakout points.
Enhancing the Strategy with Confirmations
While the Donchian Channels indicator alone can be effective, Larry added two additional confirmations to filter out false signals and ensure high-quality trades with significant momentum.
The first confirmation indicator is the Larry Williams Large Trade Index (LWTI). By adjusting the period to 25, the indicator looks for long-term trends. However, for shorter-term trends, a smaller number may be more suitable. The smoothing period is set to 20 for optimal performance.
The second confirmation indicator is a simple volume indicator. Although it may seem mundane, it plays a crucial role in avoiding false signals. By setting the moving average length to 30 and enabling the volume moving average with a white color, you can identify when the market has genuine momentum.
The Lw Volatility Breakout Strategy in Action
Now that we have covered the indicators and confirmations, let’s dive into how to implement the Lw Volatility Breakout strategy.
First, ensure you are on the 5-minute timeframe. For a long trade, follow these steps:
- Wait for the price to touch the upper red line of the Donchian Channels indicator.
- Check that the LWTI indicator is green. If it is red, do not enter the trade.
- Confirm that the volume bars are above the white line and also green, indicating sufficient volume and market momentum.
- If all three criteria are met, enter the trade.
Set your stop loss just below the middle orange line and your take profit at a 2:1 risk-to-reward ratio. This simple approach can lead to profitable trades.
For a short trade, the process is similar:
- Wait for the price to hit the lower band of the Donchian Channels indicator.
- Ensure that the LWTI indicator is red.
- Confirm that the volume bars are above the white line and red.
- If all three criteria are met, enter the trade.
Again, set your stop loss and take profit accordingly.
The Secret Trick: Considering Major Support and Resistance Levels
While the Lw Volatility Breakout strategy is effective, it is important to consider major support and resistance levels to avoid potential losses. By analyzing higher timeframes, such as the 1-hour chart, and setting major support and resistance levels, you can skip trades that occur near these levels.
For example, if all the criteria for a trade are met, but the price is approaching a strong resistance level, it may be wise to skip that trade. On the other hand, if the price is breaking a resistance level and all the indicator requirements are met, it could be an excellent trade opportunity with strong bullish momentum.
Pairing this strategy with basic support and resistance analysis or even supply and demand zones can further enhance its effectiveness.
Frequently Asked Questions (FAQs)
Q: What is the Lw Volatility Breakout strategy?
A: The Lw Volatility Breakout strategy is a trading strategy employed by Larry Williams, a professional trader who achieved remarkable returns by using the Donchian Channels indicator, along with additional confirmations such as the Larry Williams Large Trade Index and a volume indicator.
Q: What are the recommended settings for the Donchian Channels indicator?
A: For the 5-minute timeframe, it is recommended to set the length of the Donchian Channels indicator to 96. Additionally, changing the colors of the lines to red can improve visibility.
Q: How can I avoid false signals with the Lw Volatility Breakout strategy?
A: To filter out false signals, Larry Williams added two confirmations to the strategy: the Larry Williams Large Trade Index (LWTI) and a volume indicator. These confirmations help identify high-quality trades with significant momentum.
Q: How should I set my stop loss and take profit levels?
A: The stop loss level can be set just below the middle line of the Donchian Channels indicator. However, in cases where there is a significant gap between the upper band and the middle line, it may be more appropriate to set the stop loss at the recent swing low. The take profit level is typically set at a 2:1 risk-to-reward ratio.
Q: How can I consider major support and resistance levels in my trades?
A: By analyzing higher timeframes and setting major support and resistance levels, you can avoid entering trades that occur near these levels. This helps prevent potential losses when the price encounters strong resistance or support.
Q: Can I combine the Lw Volatility Breakout strategy with other technical analysis tools?
A: Yes, pairing the Lw Volatility Breakout strategy with basic support and resistance analysis or even supply and demand zones can enhance its effectiveness. By incorporating additional technical analysis tools, you can further validate trade opportunities.
I never understand these charts. Tried these strategies myself for some months, all I get are just losses. I'm still unable to make profit. However, a few investors I read about were able to make profits of upto $500,000 in 3months, so am I doing something wrong? please i need some hints on how to make actual gains.
Nice concept. However, a cursory examination will show this strategy will lose in the long term.
Bruv i used this startegy and with 1: unlimited leverage and made 20 to 800 in less than 3 hour
📌 Nice video, love how you take your time to educate your viewers. I have made profits over $120k Right Now and still making more, I am enjoying a good life with what I made investing Indeed, building a portfolio income through a licensed investment adviser is one out of many ways to earn passive income.
Thanks for the update. <I will advise traders, especially newbies, to have an orientation of the market before getting involved. I must say trading offers more benefits than just holding, thanks to Rolando Eric for always keeping me ahead of the trend, so glad I started his program
Another 'millionaire' strategy floating around social media, huh? Well, I've seen my fair share of these claims, so forgive me for being a little skeptical. But hey, if it actually worked for him, good for him! Maybe it's worth checking out, who knows?
I've lost quite a large amount of BTC investment due to the last dip, I'm just looking for a way to recover from such a massive selloff.
I love your trading ideas🍍
Think I'll gonna try to copy ur trading tactic. Hope it will work for me
I often wonder how top level investors are able to become millionaires off investing. . I’ve been sitting on over $545K equity from a home sale and I’m not sure where to go from here, is it a good time to buy into stocks or do I wait for another opportunity?
I will be forever grateful to you, you changed my whole life and I will continue to preach on your behalf for the whole world to hear that you saved me from huge financial debt with just a small Investment, thank you LILLIE TAMARA you're such a life saver.
Not all of his strategies works, but most of it works pretty well. Even for me
The future belongs to those who believe in the beauty of their dreams. Success is a state of mind. I start investing my cash in other to achieve all my dream with the help of Lucy Mary Liam. The difference Mrs Lucy Mary make in my life is second to none. It's definitely a life changing kindness. I really appreciate her effort in my life time.
Спасибо, верим и надеемся, что бинанс останется в России и вы будете нас и дальше радовать связками.
Waste of time
Think I'll gonna try to copy ur trading tactic. Hope it will work for me
Great video, trading come with a lot of benefits And I have just bought my first house through it. As a beginner I was scared of loosing my savings but I’m glad I took the bold step that is now favoring me.
Editing was shit
To my understanding this just proves how much we need an edged as an investors because playing the market like everyone else just isn’t good enough. I’ve been quite ensured about investing in this current market and at the same time I feel it’s the best time to get started on the market,what are your thoughts?!
Great video, trading come with a lot of
benefits And I have just bought my first
house through it. As a beginner I was
scared of loosing my savings but I'm glad
I took the bold step that is now favoring
Creating wealth & gaining financial freedom isn’t as difficult as lots of people think. Through the right information, building wealth and staying financially stable forever is way easy. crypto Investing is the only true way to earn a great income and staying wealthy forever… We are in the era of Web3. Make it count in your finances
One trade will never make you but one trade can always break you ! Great Content.These are very valuable rules for anybody who wants to get rich. Renewed buying strength in markets in September and October. I want to invest more than $300k, but I'm not sure on how to mitigate risk
Great video! Well I'm so happy I made the best decisions by having a good investment. Recently, I'm able to acquire my third house even at my age and I believe if things keep going well I would retire early
what are the LWTI settings for Daily Time Frame, please.
Who made 1 million dollar by this method please reply.😂
My honest advise to new investors ,buy and hold quality stocks. Ignore market forecasts and opinions, they're mostly entertaining but not very helpful.
Exceptional! If you're looking to expand on this, a Udemy course is a top pick. "Trading Stocks Mastery Course" by Stuart Mills
scam
Much appreciated ❤
I did try this I don’t know though, you need a good trend up or down or else in sideways your either don’t get a trade or you would get stuck in false breakout there 50% chance you can avoid fakeout so yea you can have more chance of winning I tried on eth 5m 33 trades 21 wins 12 losses, some fakeouts can be avoided as you gain some experience. As I feel confident I will use this with real money.
I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.
Your videos are very eye-catchy and interesting to watch! 😂 thank you for the advice!
Munger and Buffett have both achieved an incredible feat with Berkshire. They've turned thousands to billions, and have made a lot of people wealthy in the process. I really saw the potential of the stock market by reading Berkshire's annual letters. I recently sold my $674k apartment in the Bel Air area and I'm hoping to throw it into the stock market. I just don't want to lose everything.
awesome
larry had all these tools in 80s? no boy
So, this looks good…but only if you find a stock that isn't stagnating or not growing. I know how to find a stock that is growing over the long term and doesn't cost more than the average or below-average person can afford per share. Perhaps you show your viewers how to do the same?
Nice
Similar to the 33 signals strategy but win rate is not as high as 33 signals.
Good video! You never stated what asset/s Larry was trading??…
which side is he using fore trades
Thanks for keeping us informed. I feel for our country, low income people are now suffering to survive yet inflation and recession keep increasing daily, many families can't even enhance the good cost of living anymore. You've helped me a lot Ms. Helen Campter! Imagine I invested $20,500 and received $80,200 after some days.
When it comes to the world of investing,most people don't know where to start. Fortunately, great investors of the past and present can provide us with guidanc
It was 1987. Hello.
Thanks bud for keeping us financially Educated! Regardless of how bad it gets on the economy, I still make over $18,000 every single week…
The fake percentage gain would have been 10,900%, not 11,300%. Stay in school.
I’ve had majority of my holdings in tech stocks and I've had 25% increase in my portfolio, especially with Apple’s P/E (price to earnings ratio) but with much uncertainty now, my question is what stocks can be the next APPL in terms of growth for the next decade?