Backtesting ichimoku cloud + parabolic SAR

Trading Discussion Trading Lifestyle
#1

Hi guys, I am going to backtest a strategy which uses only two indicators which are
Ichimoku cloud and Parabolic SAR.

As a science-student especially in asian country, I can say that I spend about my entire life to study apart from sleep. Therefore, I will consider swing trading strategy (looking purely at D1 time frame, so that I can watch less than 5 minutes everyday and delete that apps(to remove emotions) and therefore I have more time with my studies and reading all that stuffs.
I need to form a group of (4-5people) using telegram, to backtest different pairs, if anyone interested here let me know, I will drop a telegram link and removed it once the people is enough.

So the idea is that, only buy when price is above the cloud and sell when the price is below the cloud. Stop loss is always 100 pips and target profit is based on the trend following strategy. Risk per trade is 1%. There are many “gurus” pointed out that 1)risk management and psychology is more important than your strategy.2) There are no 100% strategy. 3)I believe as long as we follow our trading strategy, proper risk management, then we will be still a profitable in the long run.

Sell the pairs when:
1)price below the cloud.
2)the dot above the price.
3)close your trade when the dot is formed in the opposite site, or it gets stopped out.

Buy the pairs when:
1)price above the cloud.
2)dot below the price.
3)Step out the trade when the dots is above the price or the price hits your stop losses.

#2

I have used Ichimoku for years, with PSAR with MACD and RSI as trend signals. All must be in accord.

Here are my parameters:
Ichimoku: 8 22 44. to cater for a five day trading week, not 6 days which was used by Japan. The red fast line must be above the blue slow line above the cloud and vice versa below. The green line must be in accord with the trend.

PSAR 0.09 0.50 which is more sensitive to price movement, as per your explanation.

MACD 3 10 16 for entry signals and trend strength

RSI only 50 line. Above is bullish trend, below is bearish trend. There is no overbought or oversold lines needed as pairs could be in these positions for weeks.

I use these three indicators which must be aligned to enter a trade. I also use 200SMA which price must be above for buying trade and below for selling trade. In today’s trending markets it’s very profitable.

The rationale for not backtesting is that Ichimoku has stood the test of time. It works best in trending markets.

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