Ichimoku Crossover and Cloud Breakout Strategy with Alternative Exits
Summary
The document outlines an Ichimoku system that combines a Tenkan-sen/Kijun-sen crossover with a price move through the Kumo cloud. Long entries require an upward crossover and a close above the cloud within four periods; short entries use the reverse conditions. It describes exits on an opposite line crossover, or when price closes through either cloud boundary. The indicator periods and exit choice are left adjustable for optimization.
The author reports trying the method on DAX five-minute data over 10,000 bars during the stated trading session, using periods of 7, 14, and 55 with the first exit method. The default periods did not appear profitable, and the author found no good results for other indices or timeframes. These are limited, in-sample observations, not evidence of robust performance. The post supplies no transaction-cost analysis or broader validation, and explicitly presents the strategy as needing further development.
Key ideas
- Entries combine a Tenkan-sen/Kijun-sen crossover with a close through the Kumo within four periods.
- Exits can use an opposite crossover or a close through either cloud boundary.
- Indicator lookback periods and exit choice are exposed as optimization variables.
- The reported DAX five-minute trial did not establish results across other markets or periods.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.