The Ichimoku Cloud trend following strategy is a technical analysis strategy. It uses the five indicator lines of the Ichimoku Cloud to determine market trend direction, support/resistance levels, and entry timing.
The core indicator lines include:
Buy signal triggered when conversion line crosses above base line. Sell signal triggered when crossing below base line. Lagging span above price and green cloud color indicates bull trend.
It judges trend direction based on the relationship between conversion and base line. For example, when conversion line breaks out base line upwards, it signals a bull trend. If lagging span is also above price, long entry triggered.
Set stop loss or take profit based on Leading Span A or Base Line. If Base Line is chosen for stop loss, close position when price breaks below Base Line.
The advantages include:
Main risk is false signals. Suggested optimizations:
Ichimoku Cloud combines indicators to judge market trend. It considers both short-term momentum and mid/long term trend. Conversion and Base Lines determine trading signals. Base Line sets stop loss to lock in profits and control risks. This strategy suits mid/long term trend following.
/*backtest start: 2024-01-01 00:00:00 end: 2024-01-31 23:59:59 period: 1h basePeriod: 15m exchanges: [{"eid":"Futures_Binance","currency":"BTC_USDT"}] */ //@version=5 strategy(title="Ichimoku Cloud - BitBell", shorttitle="Ichimoku Cloud - BitBell", overlay=true) conversionPeriods = input.int(9, minval=1, title="Conversion Line Length") basePeriods = input.int(26, minval=1, title="Base Line Length") laggingSpan2Periods = input.int(52, minval=1, title="Leading Span B Length") displacement = input.int(26, minval=1, title="Lagging Span") donchian(len) => math.avg(ta.lowest(len), ta.highest(len)) conversionLine = donchian(conversionPeriods) baseLine = donchian(basePeriods) leadLine1 = math.avg(conversionLine, baseLine) leadLine1bbbbb = math.avg(conversionLine, baseLine)[displacement - 1] plot(leadLine1bbbbb) leadLine2 = donchian(laggingSpan2Periods) leadLine2bbbbbb = donchian(laggingSpan2Periods)[displacement - 1] plot(leadLine2bbbbbb) support = leadLine1bbbbb > leadLine2bbbbbb Resistance = leadLine1bbbbb < leadLine2bbbbbb TrailStop = input.string(title='Choose Trail Line', options=["ConversionLine", "BaseLine"], defval="ConversionLine") var stopLong = 0.0 var stopShort = 0.0 var TagetLong = 0.0 var TargetShort = 0.0 if close > leadLine1bbbbb and close > leadLine2bbbbbb and conversionLine[1] <= baseLine[1] and conversionLine > baseLine and close > conversionLine and support strategy.entry("Long",strategy.long) stopLong := conversionLine // if close < stopLong and strategy.position_size > 0 // strategy.close("Long") // stopLong := 0.0 if (close < conversionLine and strategy.position_size > 0) and (TrailStop == 'ConversionLine') strategy.close("Long") stopLong := 0.0 if (close < baseLine and strategy.position_size > 0) and (TrailStop == 'BaseLine') strategy.close("Long") stopLong := 0.0 if close < leadLine1bbbbb and close < leadLine2bbbbbb and conversionLine[1] >= baseLine[1] and conversionLine < baseLine and close < conversionLine and Resistance strategy.entry("Short",strategy.short) stopShort := conversionLine // if close > stopShort and strategy.position_size < 0 // strategy.close("Short") // stopShort := 0.0 if (close > conversionLine and strategy.position_size < 0) and (TrailStop == 'ConversionLine') strategy.close("Short") stopShort := 0.0 if (close > baseLine and strategy.position_size < 0) and (TrailStop == 'BaseLine') strategy.close("Short") stopShort := 0.0 // if close >= 1.0006 * strategy.position_avg_price and strategy.position_size > 0 // strategy.close("Long") // stopLong := 0.0 plot(conversionLine, color=#2962FF, title="Conversion Line") plot(baseLine, color=#B71C1C, title="Base Line") plot(close, offset = -displacement + 1, color=#43A047, title="Lagging Span") p1 = plot(leadLine1, offset = displacement - 1, color=#A5D6A7, title="Leading Span A") p2 = plot(leadLine2, offset = displacement - 1, color=#EF9A9A, title="Leading Span B") plot(leadLine1 > leadLine2 ? leadLine1 : leadLine2, offset = displacement - 1, title = "Kumo Cloud Upper Line", display = display.none) plot(leadLine1 < leadLine2 ? leadLine1 : leadLine2, offset = displacement - 1, title = "Kumo Cloud Lower Line", display = display.none) fill(p1, p2, color = leadLine1 > leadLine2 ? color.rgb(67, 160, 71, 90) : color.rgb(244, 67, 54, 90))template: strategy.tpl:40:21: executing "strategy.tpl" at <.api.GetStrategyListByName>: wrong number of args for GetStrategyListByName: want 7 got 6