Larry Williams: how $10,000 became $1,100,000 through discipline
Larry R. Williams — one of the most influential and respected traders in the history of financial markets, known not only as a successful speculator but also as an author, educator, and developer of technical indicators still used by traders around the world.
Who is Larry Williams?
Larry Williams was born in 1942 in the United States. His name became legendary after winning the famous U.S. Investing Championship in 1987, where he turned $10,000 into $1,100,000 in just 12 months — a return of over 10,000%, a record still regarded as one of the most remarkable in trading history.
This achievement was not the result of luck, but of a disciplined system, deep understanding of market psychology, and the use of technical indicators he himself developed.
Key Principles of Larry Williams’ Trading
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Markets Move in Cycles
Williams believed markets are not random — they follow repeating patterns, especially in the short term. He extensively studied reversals and held that the greatest profit opportunities arise after extreme moves, when the market becomes overbought or oversold. -
The Williams %R Indicator
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- Values above -20% indicate overbought conditions.
- Values below -80% indicate oversold conditions.
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Trading Peaks and Troughs
He favored trading after extreme price moves — for example, after price reached a new high or low over the past 10–20 days. His strategy often involved waiting for a pullback after such an extreme and entering a trade in the opposite direction, assuming the market had overextended. -
Strict Risk Management
Despite his aggressive returns, Williams was extremely conservative with capital. He never risked more than 1–2% of his account on a single trade. His philosophy:
“Don’t try to make it all in one go. Try to survive so you can trade tomorrow.” -
Psychology and Discipline
Williams often said 80% of success comes from psychology, not system. He emphasized following a plan, avoiding emotional decisions, and rejecting the hope that the market will turn in your favor. His favorite saying:
“You don’t have to be right — you have to be rich.”
Legacy and Influence
Education: He founded an educational platform, conducted seminars, and taught thousands of traders. His approach was simple, practical, and grounded in real market behavior — not theoretical models.
Programming: Williams actively implemented his ideas into software indicators. His Williams %R is one of the most widely used indicators on MetaTrader, TradingView, and other platforms. He also developed systems using multiple timeframes, time filters, and volume confirmation — principles now standard in modern algorithmic trading.
Why Are His Methods Still Relevant Today?
Despite changes in markets — the rise of high-frequency trading, algorithms, and cryptocurrencies — the fundamental laws of market behavior remain unchanged. People still buy on euphoria and sell in panic. Williams’ indicators, especially %R, remain effective tools for identifying extreme conditions, particularly on timeframes M5–H1, which he himself recommended.
Larry R. Williams was more than a trader — he was a philosopher of the market. He proved that enormous profits can be achieved without risking everything, without complex mathematical models, and without relying on “magic formulas.” His legacy is discipline, simplicity, and a deep understanding of human nature in markets.
For any trader who seeks not just to “catch a wave,” but to survive and thrive over the long term, studying Larry Williams’ methods is not a choice — it is a necessity.
If you prefer ready-made technical solutions rather than manual analysis — in my channel I publish working indicators and advisors for MetaTrader that help automate trading based on proven market patterns:
https://www.mql5.com/en/channels/trendscalper
