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Ichimoku, MACD, CMF, and TSI Trend Confirmation Strategy

Article Strategy library · Author: ChaoZhang

Summary

The Kairou strategy combines Ichimoku levels, MACD, Chaikin Money Flow (CMF), and the True Strength Index (TSI) to identify medium- to long-term directional trades. A long signal requires Tenkan above Kijun, positive Chikou momentum, price above the cloud, a positive MACD histogram, CMF above 0.1, and positive TSI. Short conditions reverse these tests, including CMF below -0.1. The document lists default Ichimoku, MACD, CMF, and TSI settings and describes the method as a way to combine trend, momentum, and flow signals.

The published backtest configuration covers BTC/USDT futures over roughly one month, using hourly bars and a 15-minute base period, but no performance results are reported. The source also includes price-above-cloud and price-below-cloud checks in its entry rules. Despite the narrative's claims about exits and reduced noise, the implementation provides no explicit stop loss and closes a position only under the opposite signal when the corresponding opposite-entry option is disabled. The document flags parameter sensitivity, potentially excessive trading, signal disagreement, and substantial losses during reversals as unresolved concerns.

Key ideas

  • A long entry requires agreement among Ichimoku, MACD, CMF, and TSI conditions, together with price above the cloud.
  • Short entries use reversed trend, momentum, and money-flow conditions, including CMF below -0.1.
  • The source includes default indicator settings and a BTC/USDT futures backtest configuration, but reports no performance measurements.
  • The implementation has no explicit stop loss, and its close rules depend on opposite signals and entry toggles.
  • The document identifies parameter sensitivity and conflicting indicator signals as risks that require further evaluation.

Tags

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