Ichimoku Cloud and SMA Retests for Trend Entries

Summary

This approach combines Ichimoku cloud position with 55-period and 200-period simple moving averages (SMAs) to frame trend-following entries. A long signal requires price above both cloud spans and the long SMA, with price crossing back above the short SMA after being below it. The short setup mirrors these conditions below the cloud and long SMA. The parameters also include the standard conversion, base, and Span B periods, plus cloud displacement.

The document reports that a backtest performed best on one- and two-hour timeframes, and gives a one-year BTC/USDT futures test setup; it does not provide returns or other measured results. Its stated weaknesses include lag around reversals, subjective parameter choices, and no defined stop-loss or exit level. Although the prose recommends avoiding ranges and major news, the supplied entry rules do not implement those filters. The strategy’s reported timeframe performance should therefore be treated as an unsupported claim pending reproducible testing.

Key ideas

• Price relative to both Ichimoku cloud spans and a long SMA defines the directional bias.
• The entry setup looks for a short SMA cross after price has been on the opposite side of that average.
• The published parameters include a 55-period short SMA, a 200-period long SMA, and Ichimoku components.
• The document claims stronger results on one- and two-hour charts but provides no performance statistics.
• The described rules lack explicit stops, and the suggested range and news filters are not implemented in the supplied logic.

Tags

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