Ichimoku Tenkan–Kijun Crosses Filtered by ADX

Summary

This one-hour trend strategy uses Ichimoku conversion and base lines to identify direction changes, then applies ADX as a trend-strength filter. The document specifies lookback lengths of 18 bars for Tenkan and 58 for Kijun; a cross upward is treated as bullish and a cross downward as bearish. It describes filtering signals when ADX exceeds a threshold, presented in the prose as 20, and positions the method for crypto pairs such as ETH/BTC.

There is a material inconsistency: the source code uses an ADX threshold above 12, not 20, while the parameter list gives 20. The published backtest setup uses BTC/USDT futures for a one-month sample, whereas the narrative claims favorable results on other pairs without supplying metrics. The document cautions that ADX can lag, the crossover can whipsaw in ranging markets, and performance may vary by pair and timeframe. It proposes parameter tuning and explicit risk controls but does not provide tested exit rules.

Key ideas

• Tenkan and Kijun crosses determine the strategy’s directional signals.
• ADX is intended to screen out weak trends, though the stated threshold conflicts with the source code.
• The published test uses BTC/USDT futures and does not include quantified results.
• Ranging conditions, parameter sensitivity, and delayed ADX readings are identified as risks.

Tags

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