Ichimoku Cloud Strategy Idea

Aug 24, 2021

This strategy idea uses the famous Ichimoku Cloud (Forward-shifted SMA-9 and SMA-26) and Chiku (52-candle lagged close price) with its default parameters. This strategy is slow and issues few signals. However, this is one of the most performant long-term trend trading strategies. It usually works well on 1D and 4H timeframes and even better on trending instruments. This is the implementation used in QuantCT app.

You can set operation mode to be Long/Short or long-only.
You also can set a fixed stop-loss or ignore it so that the strategy act solely based on entry and exit signals.

Trade Idea

• When both close price and chiku are above the cloud, market is considered rising (bullish) and the plotted cloud becomes green.
  
• When both close price and chiku are below the cloud, market is considered falling (bearish) and the plotted cloud becomes red.
  
• Otherwise, market is considered ranging and the plotted cloud becomes orange.
  

Entry/Exit rules

• Enter LONG right after both close price and chiku went above the cloud (i.e. when the end of the plotted cloud becomes green).
  
• Enter SHORT right after both close price and chiku went below the cloud (i.e. when the end of the plotted cloud becomes red).
  
• EXIT market when close price enters the cloud.
  

CAUTION

• It's just a bare trading idea - but a profitable one. You can enhance this idea and turn it into a full trading strategy with enhanced risk/money management and optimizing it, and you ABSOLUTELY should do this!
  
• DON'T insist on using Long/Short mode on all instruments! This strategy performs much better in Long-Only mode on several instruments (Like BTC , ETH, etc.), and also performs better in Long/Short mode on other instruments (Like VET, BNT, etc.).