Ichimoku Entries with Trend Filters and Trade Management

Summary

This strategy combines Ichimoku conditions to identify long and short entries. Long signals require the conversion line to be at or above the base line, price above the cloud, a bullish projected cloud, and confirmation from the lagging-span comparison; short entries use bearish counterparts. The code also checks distance from the conversion line and avoids entries when both conversion and base lines sit inside the cloud. Ichimoku periods and the backtest date window are adjustable.

Trade management includes a 30% long profit target and 5% long loss threshold, while other exits use ATR distances, cloud conditions, and line slopes. The document gives BTC_USDT Binance futures settings for a one-month period in late 2023, but reports no results. Its narrative’s claim of broad money management and its short-side risk description are not fully reflected in the implementation, which lacks a comparable explicit short stop and position-sizing rule. False signals, fixed exits, and limited testing are cited as concerns.

Key ideas

• Long entries combine Ichimoku cross, cloud, projected-cloud, and lagging-span conditions.
• Short entries use bearish Ichimoku relationships and price positioning.
• The code includes fixed long profit and loss thresholds and ATR-based exit conditions.
• Ichimoku parameters and the backtest date window can be changed.
• The supplied backtest settings do not include performance results, and short-side risk controls are limited.

Tags

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