Ichimoku and EMA Filters for Breakout Trend Following

Summary

This strategy combines Ichimoku components with a long-term exponential moving average to seek directional trends. In its default mode, a long entry requires a bullish cloud, a close above a recent high, the conversion line above the base line, and price above the EMA. The conversion and base lines also govern exits when their relationship turns bearish. An alternate mode uses cloud-line crossovers with additional price and EMA filters. A state variable is intended to prevent repeated signals while a prior condition remains active.

The document describes custom Ichimoku periods, a breakout condition, and an alternate signal mode, but supplies no backtest report or evidence supporting the claimed parameter optimization or performance. It identifies lag, sideways-market whipsaws, sensitivity to asset and market conditions, and aggressive full-equity sizing as risks. The displayed order logic uses a limit price above the close and shows no explicit stop-loss or profit target, so practical execution and risk behavior may differ from the article's general recommendations.

Key ideas

• Long entries require bullish Ichimoku alignment, a recent-high breakout, and price above a long-term EMA.
• The default exit condition is a bearish conversion-line and base-line relationship.
• An alternate mode enters and exits on cloud crossovers with further price and EMA filters.
• The stated custom parameters are not supported by performance evidence in the document.
• Lag, ranging-market whipsaws, parameter sensitivity, and full-equity exposure are cited risks.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.