Ichimoku Trend and Pullback Entries with Swing-Based Risk Controls

Summary

This medium- to long-term trend strategy combines Ichimoku components to set direction and looks for a recent pullback to the Tenkan and Kijun lines before entry. Long conditions require Tenkan above Kijun, both lines above the cloud, and a bullish cloud; short conditions reverse those relationships. A pullback through both lines must have occurred within a configurable lookback. The written description of the pullback and signal direction is not entirely clear, so implementation details matter.

Stops use recent swing lows for longs and swing highs for shorts, with an optional ATR override when the swing distance is too small. Position size is calculated from a chosen account risk percentage, and the target distance is based on a configurable reward-to-risk multiple. The supplied settings describe a BTC/USDT futures test from November 2022 to November 2023, but no results are reported. The document notes vulnerability to ranging markets and rapid reversals; its optimization suggestions, including machine learning and martingale sizing, are proposals rather than demonstrated improvements.

Key ideas

• Tenkan, Kijun, and cloud relationships define the intended bullish or bearish regime.
• Entries require a recent pullback through both Tenkan and Kijun lines.
• Swing extremes set stops, with an optional ATR floor for stop distance.
• Position quantity uses account risk and stop distance, while the target uses a reward-to-risk multiple.
• The published BTC/USDT futures test settings include no performance results.

Tags

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