Ichimoku Trend Following with Cloud Filters and Span A Stops
Summary
This strategy uses Ichimoku components to identify long and short trends. Entries require the current and projected clouds to favor the trade direction, with optional checks for the conversion line, base line, price position, and indicator slopes. The published defaults enable several of these filters and use ATR to set a minimum current cloud width. Positions use leading span A as a stop and also close when price crosses the base line in the opposite direction.
The document explains why strict, multi-part confirmation may reduce weak signals and trading frequency, while noting that it can miss shorter moves. Its stop can be wide, exposing a trade to substantial losses. Published backtest settings specify BTC/USDT futures over a short January 2024 interval, but no performance results are provided, so they do not establish effectiveness. The source also contains configurable slope checks, meaning the stated rule that every line must point in the trade direction depends on selected settings.
Key ideas
- Long entries require bullish cloud conditions and enabled trend filters to agree.
- Short entries apply the corresponding bearish conditions.
- Leading span A serves as a stop, while a base-line cross can close a position.
- Strict filters may reduce signal frequency, and the stop may permit large losses.
- The published settings identify a test interval but provide no performance evidence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.