Ichimoku Trend Following with RSI and Volatility Filters

Summary

This strategy combines Ichimoku cloud position, Tenkan-Sen and Kijun-Sen alignment, Chikou Span momentum, RSI, and a volatility threshold to select long or short entries. Long signals require the bullish conditions together; short signals require their bearish counterparts. The listed parameters set the Ichimoku periods and offsets, volatility lookback and threshold, and whether each direction is enabled.

The document explains the intended logic and discusses possible changes, including parameter tuning, looser entry conditions, additional indicators, stop losses, and position sizing. It supplies a BTC/USDT futures backtest configuration, but no performance results, so it does not establish profitability. It also says the strategy lacks position and risk management. The source code's RSI short condition compares relative strength to 50 rather than the calculated RSI, and its close rules only activate when the opposite entry direction is disabled. These implementation details differ from a straightforward reading of the prose and should be checked before evaluation.

Key ideas

• Price above or below the Ichimoku cloud defines the intended broad trend direction.
• The entry rules combine Ichimoku line relationships, Chikou momentum, RSI, and a volatility filter.
• The strategy requires all stated bullish or bearish conditions to align before entry.
• The document identifies signal lag, low trade frequency, and missing position sizing as risks.
• The supplied backtest configuration has no accompanying performance evidence.

Tags

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