Ichimoku Lagging Span 2 Breakout Entries with Profit and Loss Exits
Summary
The strategy uses a Donchian midpoint with a lookback of 52 periods as its Lagging Span 2 reference, shifts that line by 26 periods, then enters long when price crosses above the shifted line and short when it crosses below. Separate profit targets and stop distances are configured for long and short positions. A setting is described as allowing long-only trading, although the source condition appears to permit longs regardless of that setting and uses it to gate short entries instead.
The document characterizes the line as a smoothed trend reference and notes that its lag can delay entries. It recommends tuning the line parameters, using separate risk levels, adding broader trend filters, or waiting for confirmation after a break. Published backtest settings use BTC/USDT futures on hourly bars from late December 2023 through late January 2024; no performance statistics are provided. Thus the material describes rules and risks, but does not demonstrate profitability or establish that the stated line avoids false breakouts.
Key ideas
- The signal line is a displaced Donchian midpoint based on a 52-period lookback.
- An upward price cross triggers a long entry, while a downward cross triggers a short entry.
- Long and short positions have separate configured profit targets and stop distances.
- Line lag can delay entries, and parameter choices may need adjustment by instrument.
- The code's long-only setting does not appear to prevent long entries and instead gates short entries.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.