Ichimoku Tenkan-Kijun Crosses Classified by Cloud Position and Filtered by Higher Timeframe

Summary

This strategy trades Tenkan-sen and Kijun-sen crossovers, classifying bullish and bearish crosses by whether the cross level lies above, inside, or below the current Ichimoku cloud. Configurable entry and exit tiers determine which strengths qualify. Traders can select long, short, or both directions, and optionally require the higher-timeframe Tenkan-Kijun relationship to agree. The cloud is aligned to the current bar using the Ichimoku displacement setting.

Risk settings offer ATR-based exits, fixed percentage exits, or no explicit stop mode. Position size can be calculated from a chosen fraction of equity at risk relative to stop distance, or from a fixed equity allocation, and is capped by a maximum allocation; optional scaling adjusts size according to cloud thickness versus ATR. The script includes dashboard and chart displays, but the provided material contains no backtest results. In particular, its ATR exits are recalculated using the current close, and the selected sizing stop distance may not match the actual exit rule in every configuration, so the settings should be examined before interpreting simulated risk.

Key ideas

• Tenkan-Kijun crossovers are tiered according to their position relative to the displaced cloud.
• Entry and exit strength thresholds can be configured separately for long and short trades.
• An optional higher-timeframe Tenkan-Kijun relationship filters trade direction.
• Position sizing can use stop-distance risk or fixed equity allocation, with a maximum size cap.
• The script offers ATR or fixed-percentage exits, but supplies no performance evidence and its risk settings require careful interpretation.

Tags

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