Ichimoku Cloud Breakouts with Fixed Profit and Stop Levels

Summary

This trend-following strategy uses the Ichimoku cloud to define breakout entries. A close above the prior cloud top triggers a long, while a close below the prior cloud bottom triggers a short. The described defaults use conversion, base, and second leading-span periods of 9, 26, and 52, with a 26-period displacement; the stated profit target is 3.5% and the stop is 1.5% of entry price. The published configuration identifies BTC/USDT futures, one-hour bars, and a 15-minute base period, but supplies no backtest performance results.

The document presents the cloud as a trend and support/resistance reference, while warning that range-bound conditions can produce repeated losses and multiple filters may reduce trading opportunities. There is a mismatch between the prose, which describes fixed exits, and the source, where the exit calls are commented out; those exits therefore do not appear active in the provided strategy code. The source instead shows entries on cloud breaks and permits an optional buy-only mode, so its actual behavior should be distinguished from the written description.

Key ideas

• A close above the cloud top triggers a long entry, and a close below the cloud bottom triggers a short entry.
• The default Ichimoku periods are 9, 26, and 52, with a 26-period displacement.
• The prose specifies a 3.5% profit target and a 1.5% stop relative to entry.
• The provided source comments out its exit orders, so the stated profit and stop rules are not active there.
• Range-bound markets can generate repeated losing signals, and no performance evidence is reported.

Tags

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