Ichimoku Cloud Entries with Tenkan–Kijun Filters and Kijun Exits

Summary

This strategy uses Ichimoku cloud position and the relationship between the Tenkan-sen and Kijun-sen to generate directional entries. A long requires price above both cloud spans, a bullish candle, and Tenkan-sen above Kijun-sen; a short applies the opposite conditions. A 20-candle range filter skips low-movement periods, and the system avoids consecutive entries in the same direction. Positions close when price crosses the Kijun-sen against the trade.

The author says an earlier Chikou-span filter removed both winners and losers and produced lower overall profitability, so it was omitted. The notes report that restricting DAX 30-minute trading hours and setting a last-entry time improved results by about 4.5%, and describe GBP/USD performance as stronger in volatile periods but near breakeven for long stretches. These are author-reported observations, not a documented controlled test. The position-sizing formula uses a stated capital amount, risk fraction, and assumed stop distance, but exits are based on the Kijun-sen rather than a fixed stop. The author recommends further research across markets and does not provide enough test detail to assess robustness.

Key ideas

• Long and short entries require price to be outside both cloud spans, a candle in the trade direction, and matching Tenkan-sen and Kijun-sen alignment.
• A recent-range filter suppresses signals when the market has moved too little.
• The system avoids taking consecutive entries in the same direction and exits when price crosses the Kijun-sen against the position.
• The author reports better results after restricting DAX trading hours, while GBP/USD performance varied with volatility.
• The reported performance lacks detailed backtest conditions and should be independently verified.

Tags

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