Williams Fractals Breakout

Entry Logic

• Exact Entry Trigger: Enter long one tick above a validated up-fractal. Enter short one tick below a validated down-fractal.
• Confirmation: The fractal should be part of a larger trend structure.
• Timeframe: Any.
• Market Condition: Trending.

Exit Logic

• Profit Targets: Target the next fractal level.
• Opposite Signal: Exit on a validated fractal breakout in the opposite direction.

Stop Loss Structure

• Hard Stop: Place stop at the most recent opposing fractal.

Risk Management Framework

• Risk Per Trade: 1% of account capital.

Position Sizing Model

• Sizing Approach: Fixed fractional.

Trade Filtering

• Market Conditions to Avoid: Ranging markets with many overlapping fractals.

Context Framework

• Trend Direction: Only take fractal breakouts in the direction of the Alligator indicator.

Trade Management Rules

• Breakeven: Move stop to breakeven after a 1R move.

Time Rules

• Optimal Window: Any time.

Setup Classification

• A+ Setup: A fractal breakout that occurs when the Williams Alligator lines are wide open.

Market Selection Criteria

• Instruments: Any liquid instrument.

Statistical Edge Metrics

• Win Rate: 45-55%.
• Profit Factor: 1.7.
• Expectancy: 0.3R.

Failure Conditions

• Strategy Fails: In choppy markets.

Psychological Rules

• Discipline: Wait for the price to break the fractal level before entering.

Advanced Components

• Filters: Use the Alligator as a trend filter.

Location

• Strongest: As a continuation signal in a strong trend.