Ichimoku Crossover, Kumo Breakout, and Kumo Twist Strategies

Summary

This Ichimoku backtesting tool offers four selectable long-only approaches: Tenkan Sen crossing Kijun Sen, price crossing Kijun Sen, a close breaking above the cloud, and a bullish Kumo twist. The crossover signals are classified by whether price is above, within, or below the cloud; users can choose a signal strength for the first two methods and for the twist. The breakout method includes configurable percentage-based stop and target levels.

The script calculates Ichimoku lines from rolling price highs and lows, sizes positions as a share of initial capital, and exits crossover and twist positions on opposing crosses. It provides chart plots for the indicator and cloud, as well as backtesting settings for fees and slippage. The document contains implementation details but no comparative performance results. Its code and description also appear inconsistent on position size and signal classification, and it does not establish that any method is profitable; results would depend on the instrument, timeframe, and execution assumptions.

Key ideas

• The tool makes four Ichimoku-based long strategies independently selectable, while rejecting configurations that enable more than one at once.
• Tenkan-Kijun and price-Kijun crossovers can be filtered by the price's position relative to the cloud.
• A cloud breakout enters when price crosses above the cloud and sits above both cloud spans.
• The breakout strategy uses user-set percentage stop-loss and take-profit thresholds.
• The document provides no performance comparison or evidence of profitability.

Tags

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