The Strategy That Made Larry William $1.1 Million In 12 Months

00:00 - Hello traders! Welcome back 
to the ComLucro Channel! Today, we’re diving into Larry Williams’ 
legendary LW Volatility Breakout Strategy—the   method he used to turn $10,000 into $1.1 
million in just 12 months! This isn’t   just theory. We’ll break it down step by step, 
showing you how to use the Donchian Channels,   momentum indicators, and volume confirmations to 
find high-probability trades. Plus, we’ll share a  
00:23 - secret trick to make it even more effective by 
integrating key support and resistance levels. At ComLucro, our goal is simple:   to empower you with practical, proven strategies 
that help you make smarter trading decisions. We   don’t do hype or shortcuts—just solid, 
actionable techniques you can trust. If you’re ready to elevate your trading game, 
stick around. We’ve condensed everything you need  
00:44 - into an easy-to-follow approach designed 
to save you time and boost your results. And don’t forget to explore our other videos   and visit our website for more tools 
and resources to sharpen your edge. After this brief introduction, we’ll jump straight 
into the details. You won’t want to miss them! Hey traders! If you're looking to level up 
your trading game, give this video a thumbs up,  
01:04 - subscribe to the channel, and hit that 
notification bell so you never miss an update. Before we dive in, we highly recommend checking 
out our playlists on trading psychology and risk   management. These videos can significantly help 
you manage emotions, maintain discipline, and   develop effective risk management strategies—key 
elements for achieving profitability in trading. Please, listen and remember! No amount 
of study to find the perfect trading  
01:31 - strategy will benefit you if you lack 
emotional control during your trades.   If you cannot accept a losing trade and 
keep moving your stop loss, or worse,   trade without a stop loss, you are 
setting yourself up for failure. The efficiency of your strategy is directly tied 
to your risk management and emotional discipline.   Only when a trader understands and implements 
this can they start seeing consistent profits  
01:54 - and end their months in the green. Without these 
critical elements, even the best strategies will   crumble under poor execution and emotional 
decision-making. Now, let's get started! First, let’s talk about Larry Williams—a renowned   professional trader who accomplished the 
extraordinary feat of turning $10,000   into $1.1 million in just 12 months of 
trading, an astonishing 11,300% return!
02:21 - Now, if you’re anything like us, you’re probably 
wondering: How in the world did he pull that off? Driven by curiosity, we at ComLucro decided 
to dig deep and uncover the secret behind this   incredible success. We scoured the internet, 
searching for every piece of information we   could find about the strategy Larry Williams 
used to achieve these mind-blowing results. And let us tell you, what we found was 
nothing short of amazing. We uncovered  
02:46 - the exact trading strategy Larry Williams 
employed to generate those massive gains.   After analyzing it, we can confidently say 
that Larry is a genius for developing this   approach—it’s incredibly effective 
and still highly relevant today. Now, here’s the best part: we’re going 
to share this strategy with you. Let’s   dive straight into it. The method behind these 
extraordinary gains is known as the LW Volatility  
03:09 - Breakout Strategy. LW, of course, stands for 
Larry Williams—it just makes sense, right? So, let’s talk about how this strategy revolves 
around one powerful tool—the Donchian Channels   indicator. It’s the star of the show, 
and here’s exactly how you set it up. First, you’ll need to add it to your chart. To 
do that, head over to the Indicators tab and   type in “Donchian Channels.” Once you see it 
pop up, click on it—it’s this one right here.
03:33 - Now, while the default settings of the 
Donchian Channels are good, we need to   make a few adjustments to tailor it specifically 
for this strategy. Here’s what you need to do: Open the Settings for the indicator 
and change the Length to 96. This   tweak is key to aligning it with 
the logic behind the strategy.  Then, go to the Styles tab and change the 
line colors to red. This isn’t just for  
03:53 - aesthetics—it makes the lines stand out, so you 
can quickly and easily spot critical levels.  Here’s a super important point: these settings 
are specifically fine-tuned for the 5-minute   time frame. That’s the exact time frame Larry 
Williams used to make this strategy work. But if you’re thinking about 
using a different time frame,   you’ll need to do a little homework. Make sure 
to run your own backtesting and experiment  
04:14 - with different settings for the indicator to 
find what works best for your preferred time   frame. It’s all about adapting the 
strategy to fit your trading style! Alright, so here’s what the Donchian 
Channels indicator looks like when you   add it to your chart. You’ll 
notice it has three lines,   and each one serves an important 
purpose. Let me break it down for you.
04:31 - First, we’ve got the middle line. Now, think of 
this as the market’s natural balance point—it’s   like a magnet for price. The price tends to 
be drawn back to it over time, which makes it   super useful for understanding market behavior. On 
top of that, it’s a great way to gauge momentum.  For example, when the price is trading above 
the middle line, that’s usually a bullish sign.   And when the price is below the middle line, 
the sentiment is more bearish. Simple, right?
04:55 - Next up are the upper and lower bands. These 
lines are where things start to get interesting.   They can act as really strong support and 
resistance levels, meaning the price often   bounces off these points. But there’s more—these 
bands also play a big role in spotting breakouts.  Here’s how it works: when the price breaks 
above the upper band, it often signals   that momentum is picking up and the price 
might keep climbing. And the same goes for  
05:18 - the lower band—if the price breaks below it, 
that can indicate further downward movement. Now, here’s the exciting part. This idea of 
breakouts? That’s exactly how Larry Williams used   the Donchian Channels in his strategy. But hang 
tight—we’re getting to that part in just a bit! Now, let’s address the elephant 
in the room—this strategy has one   major issue. Actually, it’s a pretty big 
problem, so let me break it down for you.
05:41 - Here’s how the strategy is normally used:
When the price breaks above the upper band,   you enter a long position. You set your 
stop loss just below the middle line   and your take profit to something like a 
2:1 risk-to-reward ratio. Sounds great,   right? And in a trending market, this 
setup often results in winning trades. BUT—here’s the catch—this  
06:00 - strategy runs into trouble when the market 
starts consolidating and moving sideways. During consolidation, the upper and 
lower bands get much closer together,   like you see here. When this happens, even small 
price movements with little to no momentum can   cause the price to break through the bands. This 
creates false signals, leading you to enter trades   that don’t have a strong directional push. And 
what’s the result? You end up losing the trade.
06:23 - So, while this strategy shines in trending 
conditions, we need to be aware of how it   performs in choppy, sideways markets. Don’t 
worry though—there are ways to address this,   and I’ll show you how to avoid these traps! Alright, let’s fix the issue and ensure we’re 
only entering high-quality trades with real   momentum behind them. To do that, we need to 
add two confirmation indicators to the setup.
06:44 - First Confirmation: The Larry 
Williams Large Trade Index (LWTI)  This indicator helps us identify 
whether significant trading activity   is backing a trend. Here’s how to set it up: Add the LWTI to your chart.
Go into the Settings and change the Period to 25.  A higher number looks for longer-term trends.
If you’re looking to confirm shorter-term trends,  
07:05 - using a lower number might work better. However, 
after thorough testing, we found that 25 is the   optimal setting for the 5-minute time frame.
Next, adjust the Smoothing Period to 20.  This gives us a reliable confirmation of 
whether a trend is substantial or just noise. Second Confirmation: A Simple 
Volume Indicator Works Wonders  Alright, let’s talk about 
volume. It might seem basic,  
07:28 - but trust us—this tool is a game-changer for 
avoiding bad trades. Here’s how to set it up: Add a Volume indicator to your chart.
Open the Settings and change the MA Length to 30.  Then, switch to the Style tab, 
enable the Volume Moving Average,   and change its color to white 
to make it easier to spot.  This volume indicator will help us confirm when 
the market has real momentum behind a move,  
07:50 - ensuring we don’t get tricked by 
small, insignificant price movements. With these two confirmations in place,   we’ll filter out false signals and focus only on 
trades with strong backing and clear momentum! This strategy is super straightforward, and I’ll 
walk you through it step by step. Plus, stick   around until the end because I’m going to share 
a secret trick that makes it even more powerful!
08:10 - Alright, here’s how to set it up: First things first—make sure you’re on the 
5-minute timeframe. This is crucial for the   strategy to work as intended. Now, let’s 
break it down into steps for a long trade: Step 1: Watch for the Price 
to Touch the Upper Red Line.  Wait for the price to move up and make 
contact with the upper red line of the  
08:28 - Donchian Channels. This is your first signal that 
the market might be setting up for a breakout. Step 2: Check the LWTI Indicator.
Next, look at the LWTI indicator.   It must be green when the price touches 
the upper band. If it’s red, you skip the   trade—simple as that. This ensures that there’s 
strong directional momentum behind the move. Step 3: Confirm Volume Bars Are 
Above the White Line and Green. 
08:53 - Finally, check the volume indicator. 
The volume bars need to be both: Above the white moving average line 
(to show sufficient market activity).  Green (to confirm bullish momentum).
This step is critical because it   filters out trades in consolidating 
markets or during low-volume periods. If all three of these criteria are 
met, you’re good to go! Enter the  
09:13 - trade right at the point where the 
price touches the upper red line,   the LWTI confirms the trend, 
and the volume is aligned. Follow these steps carefully, and you’ll 
be well on your way to making smarter,   more strategic entries. And remember, that 
secret trick is coming up next, so stay tuned! Alright, let’s talk about stop loss placement—it’s 
one of the most important parts of this strategy,  
09:34 - and where you put it depends on the 
specific setup you’re dealing with. Most of the time, you’ll want to place your 
stop loss just below the middle orange line   of the Donchian Channels. This is a solid spot 
because it gives your trade enough breathing   room to handle normal market fluctuations 
while still keeping your risk manageable. But sometimes, you’ll notice there’s a big gap 
between the upper band and the middle orange  
09:55 - line. In these cases, setting your stop loss 
at the orange line could mean taking on way   too much risk. So, what do you do? Instead, 
place your stop loss at the most recent   swing low. It’s still effective and keeps your 
risk in check without overexposing your trade. Now that your stop loss is in place, it’s time to 
think about your take profit. Here’s the golden   rule: go for a 2:1 risk-to-reward ratio. Why? 
Because even if your win rate isn’t super high,  
10:21 - this ratio ensures you can stay 
profitable in the long run. And there you have it! With both your stop 
loss and take profit set, your trade is   locked and loaded—structured, 
calculated, and ready to roll. Let’s break down a quick example of how 
this strategy works for a short trade,   step by step. Stick around because after this,  
10:39 - I’ll share the secret trick that can 
take this strategy to the next level! First, you’re watching for the price 
to hit the lower band of the Donchian   Channels. This is your first signal 
that a bearish move might be starting. Next, check the LWTI indicator. 
It has to be red. If it’s green,   hold off—this means there’s no clear bearish 
momentum yet, and it’s better to stay out.
10:59 - Finally, look at the volume bars. 
You need to confirm two things here: The bars should be above the white moving average 
line, showing there’s enough market activity.  They also need to be red, 
confirming bearish sentiment.  Once all three conditions are met, you’re 
ready to go. Enter the trade as soon as   the price touches the lower band and 
the other confirmations are aligned.
11:19 - From there: Place your stop loss just above the 
middle orange line to manage risk.  Set your take profit at a 
2:1 risk-to-reward ratio,   giving you a solid return if the trade plays out. And that’s it! You’ve got yourself a simple yet 
effective short trade that’s easy to execute.
11:35 - And now it’s time for the big 
reveal—the SECRET TRICK that can   help you avoid unnecessary losses and 
make this strategy work even better. Here’s the deal: even when all the criteria 
for a trade are met, there’s still a risk   if the setup happens near a major support or 
resistance level. Let me explain with an example. In one trade, everything lined up perfectly:
11:55 - The price touched the upper band.
The LWTI indicator was green.  The volume bars were green 
and above the white line.  So, we entered the trade, set our stop 
loss and take profit as usual—and yet,   the trade ended up being a loss. Why?
When we zoomed out,  
12:11 - it became clear that the trade was taken right 
at a strong resistance level. Even though all   the indicators gave valid signals, the price 
reversed because of the strength of that level. The Fix: Use a Higher Timeframe to Spot Key Levels
Here’s the secret trick to avoid this issue: Switch to a higher timeframe, 
like the 1-hour chart.  On this timeframe, look for and mark all 
the major support and resistance levels. 
12:33 - Then, go back to your original timeframe and 
avoid entering trades near these key levels.  This extra step is simple but extremely 
effective. It keeps you from trading into   strong barriers where the price is likely to 
reverse, helping you filter out bad setups. By adding this trick to your process, 
you’ll avoid low-quality trades and   focus only on setups with room to run. This 
not only improves your win rate but also  
12:53 - makes your strategy far more reliable. 
Try it out—you’ll see the difference! So, in that trade we mentioned earlier, you’d 
simply skip it because it was too close to a   strong resistance level. After all, no trade 
is always better than a bad trade, right? Now, here’s an extra tip to make 
the strategy even more powerful.   What we’ve found works exceptionally 
well is when the price breaks through  
13:14 - a resistance level and all the indicator 
requirements are met at the same time. Think about it: The price breaking a resistance 
level shows strong bullish momentum.  When this breakout aligns with the upper band, a 
green LWTI, and high volume, you’ve got a ton of   confluence supporting the trade.
This type of setup often results  
13:32 - in high-probability trades because the 
momentum and breakout validate each other. If you combine this strategy with basic 
support and resistance levels or even   supply and demand zones, the results 
are phenomenal. These levels give you   additional context about market structure and 
help you avoid entering low-probability trades. By waiting for confluence between the 
strategy’s signals and these key levels,  
13:54 - you’ll be stacking the odds 
heavily in your favor. This   tweak doesn’t just make the strategy 
safer—it makes it far more effective! In conclusion, Larry Williams’ LW Volatility 
Breakout Strategy is a powerful and proven   method for capturing high-probability trades. By 
combining Donchian Channels, momentum indicators,   and volume confirmation, and enhancing 
it with support and resistance analysis,  
14:16 - you can filter out bad trades and 
focus on setups with real potential. Patience and discipline are key. This strategy 
keeps you focused on high-probability setups,   trading only when the market aligns 
with your rules. Trust the process,   refine your execution, and let the strategy 
work without emotional interference. If you found this helpful, check out our other 
videos and visit our website for more insights.  
14:38 - Thanks for watching, and see you in the next video 
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