Ichimoku Regime Switching with Trend and Range Entries
Summary
This hybrid system classifies conditions using price position relative to the Ichimoku cloud. When price is above or below the cloud, it seeks trend trades confirmed by RSI and the MACD histogram. When price is between the cloud boundaries, it looks for reversals using extreme RSI and Stochastic RSI readings. ATR sets stop distances, and the chart colors the identified regimes.
The document reports a profit factor of 2.159 and net profit of 10.71% on a daily timeframe, while stating that win rates were below 40% across timeframes and that the four-hour test produced 430 trades. Its published test uses ETH/USDT on a two-day chart from August 2024 to February 2025. These figures are limited to the stated test and do not establish future performance. The text also notes signal lag, frequent trading on shorter intervals, and the difficulty of tuning multiple indicators; it recommends evaluating the strategy on longer timeframes and adapting its parameters to market conditions.
Key ideas
- The Ichimoku cloud is used to distinguish trend conditions from a range regime.
- Trend entries require cloud position plus RSI and MACD confirmation.
- Range entries use extreme RSI and Stochastic RSI readings to seek reversals.
- ATR determines stop distances, with the published multiplier set at two.
- Reported results vary by timeframe and are accompanied by low win rates and a high trade count on the four-hour test.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.