Ichimoku Trading Strategy
Strategy Logic
This LONG-ONLY strategy uses the Ichimoku Kinko Hyo system for trades. It combines multiple Ichimoku factors to go long when criteria are met.
The trading logic is:
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Calculate conversion, base line, leading spans 1 & 2
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Consider long when close is above cloud and cloud is rising, with conversion above base line
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Additionally, lagging span must be above cloud and price for uptrend confirmation
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When all criteria met, go long
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If lagging span falls below price or cloud, close long
The strategy utilizes Ichimoku's indicators to confirm trend, with the cloud as dynamic stops for risk control.
Advantages
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Ichimoku synthesizes multiple factors for trend determination
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Dynamic stops to maximize profit locking
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Simple and clear rules for easy implementation
Risks
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Ichimoku is slow and may miss opportunities
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Careful optimization of lookback periods needed
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LONG only, so good short chances missed
Summary
This strategy leverages Ichimoku's synthesis of indicators to define trend direction. With optimized parameters, it provides a simple long-only system. But limitations in lag and being LONG-only require caution.
/*backtest
start: 2023-08-14 00:00:00
end: 2023-09-13 00:00:00
period: 2h
basePeriod: 15m
exchanges: [{"eid":"Binance","currency":"BTC_USDT"}]
*/
//@version=4
strategy(title="Ichimoku Cloud", shorttitle="Doubled Ichimoku", overlay=true, initial_capital=1000, default_qty_value=100, default_qty_type=strategy.percent_of_equity)
conversionPeriods = input(20, minval=1, title="Conversion Line Length")
basePeriods = input(60, minval=1, title="Base Line Length")- 1