Ichimoku Cloud Breakouts with Tenkan-Kijun and Lagging-Price Filters

Summary

This strategy uses Ichimoku components to define long and short breakout conditions. A bullish setup requires Tenkan above Kijun, the close above the forward-shifted cloud, and positive price momentum over the lagging-span offset. The bearish setup reverses those conditions. The listed defaults are 7, 14, and 28 bars for the Tenkan, Kijun, and Span B calculations, with offsets of 14 bars. Long entries are enabled by default and short entries are disabled. Published settings describe a year of BTC/USDT futures data, but no performance figures are provided.

The document presents the multiple conditions as a way to confirm direction and reduce false breakouts, while noting that confirmation can delay entries. It also identifies choppy-market losses and turnover costs as risks. The implementation uses comparisons of indicator values rather than explicit crossover events for Tenkan/Kijun, and it approximates the Chikou condition with momentum; those details matter when interpreting the stated rules. Parameter adjustment, additional filters, stop losses, and walk-forward evaluation are suggested, but no results establish their effectiveness.

Key ideas

• Long entries require Tenkan above Kijun, price above the cloud, and positive offset-based momentum.
• Short entries use the inverse conditions, though short trading is disabled by default.
• The method combines trend alignment and cloud breakout conditions, which can delay signals.
• The code represents the lagging-span check through price momentum over an offset.
• No backtest performance results are reported, and consolidation and turnover are cited as risks.

Tags

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