Ichimoku Chikou Span Crosses Filtered by the Kumo

Summary

This document describes an MT4 trading strategy using the standard Ichimoku Kinko Hyo settings. It enters long when the Chikou Span crosses price upward and both price and Chikou are above the Kumo; it enters short on the reverse cross when both are below the cloud. Open positions close when an opposite signal appears, so trade exits depend on signal reversal rather than preset stop-loss or take-profit levels.

Position sizing can use a fixed lot or ATR-based risk sizing, with settings for percentage or cash risk and whether to calculate from equity or balance. The document supplies no backtest figures or performance evidence despite a backtest heading. It recommends higher timeframes and trending markets, and says to test settings before live use. These are suggestions, not validated findings; reversal-only exits may leave exposure open while a position moves against the trade.

Key ideas

• An upward Chikou Span cross is a long signal only when price and Chikou are above the Kumo.
• A downward cross is a short signal only when price and Chikou are below the Kumo.
• Open positions close when an opposite signal appears, with no fixed stop loss or take profit.
• Position size can be fixed or adjusted using ATR-based risk settings.
• The document provides no numerical backtest evidence for the strategy.

Tags

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