You may have heard of the Williams %R indicator, a widely used technical analysis tool that helps investors assess overbought and oversold market conditions. But did you know that the creator of this indicator is Larry Williams, a legendary figure in futures trading, author, columnist, and asset manager? He famously turned $10,000 into $1.1 million in under a year, creating a miracle in the futures market. He also ran for Congress twice, published multiple best-selling books, and mentored many successful traders. He is often referred to as the "Godfather of Futures" and remains a prominent and influential figure.
Early Exploration and Failures
Larry Williams was born in 1942, and from a young age, he was fascinated by the financial markets. In 1962, he made his first trade, suffering significant losses. These early setbacks led him to realize that long-term profitability in the markets requires two principles: systematic trading and trading artistry.
Systematic trading means developing your own trading system and adhering to it strictly, without allowing external distractions to influence your decisions. Trading artistry involves understanding the market’s underlying logic, investor psychology and emotions, and market trends and fluctuations. Larry Williams delved deeply into market research, developing his own technical indicators and strategies.
In 1964, Williams graduated from the University of Oregon with a degree in journalism. He embarked on a writing and publishing career while continuing his trading activities. In 1966, he invented the famous Williams %R indicator, a momentum oscillator that reflects overbought and oversold market conditions. In 1970, he published his first investment book, The Secret of Stock Selection, which focused on using fundamental analysis to pick stocks. In 1973, he published his second book, Commodity Trading with Seasonal Patterns, which introduced how to use seasonal factors to predict commodity prices.
Glorious Achievements and Honors
Although Larry Williams had already made a name for himself in the futures market, it was in 1987 that he truly became a legend. That year, he entered the U.S. Robbins Cup Futures Trading Contest, where he turned $10,000 into $1.1 million in one year—an astounding 114-fold return—and won the championship. This feat shocked the financial world and made him a media sensation, with many investors and traders seeking to learn from his methods.
Williams didn’t rest on his laurels but continued refining his trading systems and philosophy. He also started an education and training business, sharing his experiences and techniques with investors around the world. He appeared in numerous high-profile media outlets, including Barron’s, The Wall Street Journal, Forbes, and Fortune. He published several best-selling books, including Short-Term Trading Secrets, The Truth About Futures Trading, and Trading Stocks and Commodities with the Insiders.
In addition to his trading prowess, Larry Williams is also known for his social responsibility. He ran for the U.S. Congress from Montana twice, demonstrating his passion for politics and social causes. He also served on the board of the National Futures Association, contributing to the regulation and development of the futures market.
Wisdom and Legacy
Larry Williams not only achieved remarkable success in the futures market but also mentored many talented traders, including his daughter, Michelle Williams. In 1997, Michelle participated in the Robbins Cup Futures Trading Contest and turned $10,000 into $110,000—an 11-fold return—winning the championship, just like her father. She is also a successful actress, having starred in films like Brokeback Mountain and My Week with Marilyn.
Larry Williams passed down not only his trading skills but also his trading philosophy to his daughter. He once said, "What I want to teach her is that you must have the courage to pursue what you want, the confidence to believe that you can succeed, the patience to wait for opportunities, the wisdom to assess risk, the discipline to follow through with your plan, the humility to accept failure, and the optimism to face challenges."
Larry Williams is a figure worth learning from and respecting. Through his own talent and wisdom, he created miracles in the futures market. Through his books and teachings, he shared knowledge with investors worldwide. His actions and contributions to society and the industry have made a lasting impact. His spirit and character have inspired generations, making him a true legend—from "Western Cowboy" to "Godfather of Futures."
