Hi everyone, I am exploring ways to improve the Ichimoku cloud strategy, is there any other indicator(s) that can add in to greatly improve it and the reason(s) behind? Thank you
My system using Ichimoku.
Set the parameters at 8:22:44 for a 5 day trading week. Use the daily chart with a 60 EMA to define the trend. Use the 1hr to trade. Use the 15M to line up all three time frames as being in synch like three ducks - and don’t trade in the cloud. Only trade above the 60 EMA on the bullish trend and below it on a bearish trend.
Use MACD; parameters 3.10.16 which are the most accurate, IMO, and only use the histogram candles to measure the strength of trends. Use Parabolic SAR as a lagging change in trend, but sometimes useful as a confirmation indicator.
Use ATR number on the 1 Hr chart for setting S/L at 1.5 -2 times the range.
There is more, but you’ll have enough to go on from the above.
Best of luck.
26/10. Sell AUD/NZD meets all the criteria above.
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@steve369 Thank you for sharing your system, it looks a bit complicated but I think you must have compounded it during the years of trading. I believed this must be your trading secret, surely I would love to give it a try!
BTW, where should I set my stop loss and profit taking?
A above: Use ATR number on the 1 Hr chart for setting S/L at c.1.5 - 2 times the range - if it is within (what should be) your risk of only trading !% -1.5% of your capital per trade.
As for taking profit, I aim for a 1.5 - 1 win ratio over losses. if the trend is huge I use a trailing stop within 200 points (20pips) when my profit reaches the above.
Complicated ? - well you asked how to greatly improve it…
By all means keep asking questions - only way to learn what works and what doesn’t.
@steve369 Noted.
BTW, didn’t see your statement" 26/10. Sell AUD/NZD meets all the criteria above. So I take a look on this pair on 15min, 1hr and 1 day time scale and this is what I found.
I have put a white arrow at the moment the blue Tenkan sen (Conversion line) cross under the red Kijun sen (Base line) in the 15min chart, this white arrow appear in the 1hr and 1 day chart at the moment of the 15 min intersection. As you have said, three time frames as being in synch like three ducks, by shorting this pair at the white arrow would have got me some pips…
Am I right?
Great set up - well done. You can also see that the candles are below the 60 EMA.
Yes, you could have earned some Pips, however the trend bottomed out early, regretfully. Which can be seen by the MACD histogram candles diminishing in size.
I stayed in too long - could have scalped a few pips profit, but had to close with a small loss.
BTW - traditional Ichimoku Tenkan sen is a fast red line, and Kijun sen is a slow blue line. Had me confused for a minute.
@steve369 Thank you.
Yes, the pair had bottomed out very early, feel sorry for your loss. BTW, how did you know the pair AUD/NZD had the potential in advance?
Sorry for the chart and the line color, the default color in IG for the Tenkan sen is in blue and Kijun sen is red XD, I think I will change the color to the traditional on then.
What do we have today? Which pair to look out for?
Hi. Thanks for the support - welcomed.
I mostly trade the Asian markets up to mid afternoon to catch the London market starting - it’s 07.45 here in Thailand. Right now, I am preparing my Watch list to go through ALL the forex pairs from around 09.30 when there is some market volume. That’s what I did yesterday.
Right now, I’m avoiding the majors unless it’s a slam dunk set up - because of the US presidency election and Brexit negotiations possibly affecting market sentiment on the 3 main currencies.
I’ll get back to you by 11 a.m. But don’t be surprised if there are no viable trades for my very strict strategy - nowadays, one to three trades per day is maximum. As for yesterday, (not today) you could have made a few scalping pips buying NZD/CAD - but it was ranging throughout the day.
@steve369 I think we are in the same timezone, it’s 10:10am here in Hong Kong.
Am I right that you are a trader in profession? It seems to me that you can sit in front of the computer for such a long time. For me, yesterday is our public holiday and I have the luxury to be at the front of computer all day. Normally I can only trade in the evening after work. I was planning to trade at 9:30 since it is the start of US market, which intersect the London (Europe) market, where the most the market is most liquidated.
Yes, talking about your “very strict strategy”, I actually found no trading opportunity in major, cross (EUR, GBP, JPY). XD
Anyway, I shall continued following your strategy to see how it goes.
I’m retired, so I’m mostly at home all day. But I usually select trades early and leave running - hence a bit late in closing yesterday.
Today, keep a watch on NZD/USD buying opportunity.
Cheers.
It seems you have plan ahead and hand off after putting up order.
Yes, NZD/USD seems to be in good trend!!!
However, during the 1 day chart, the Tenkan sen and Kijun sen are in the cloud, shall I trade this? Or shall I wait until both line (Tenkan sen & Kijun sen) go above the cloud?
BTW, I also found your yesterday recommendation of AUD/NZD seems to be a good trend too!
However, the MACD in 1 day chart seems to be turning…
BTW, I begin to suspect that your strategy seems not to work on major pair, GBP pair, EUR pair and JPY pair. I can’t find any possible trade in these pair with your strategy…XD
However, during the 1 day chart, the Tenkan sen and Kijun sen are in the cloud, shall I trade this?
Providing the candles are out of the cloud, it’s a trading opportunity.
However, the MACD in 1 day chart seems to be turning…
Yes it’s an excellent indicator that the trend has run out of steam. I would expect either a continuation, or a reversal is imminent - which could be confirmed by the Parabolic SAR on the next candle…
BTW, I begin to suspect that your strategy seems not to work on major pair, GBP pair, EUR pair and JPY pair. I can’t find any possible trade in these pair with your strategy…XD
It works on all pairs when they’re trending. This won’t happen every day for sure. Currently, I’m avoiding USD, EUR, & GBP as the fundamental challenges (US election & Brexit negotiations) are influencing the market sentiment.
Yesterday was a good example that the USD was supported over both the EUR and CHF , despite most indicators showing the opposite.
Ah I see, I think I am too quick to give conclusion on your strategy. We will see what we will have today.
Anyway pairs to look out for today?
Bear in mind many traders have more than one strategy - my market wizard friend has six for different forex market conditions. What I like about my one strategy is it’s a simple glance at the daily chart which determines whether I need to line up lower time frames. And if three ducks line up, the win rate is good enough for me to continue with it.
TODAY
JPY is a safe haven right now for all pairs, plus EUR would suffer if France goes into Covid 19 lockdown.
Yes, I have heard that before, some trader have different account for different strategy. However, in the end it is the win rate and money management that matters!
I will be on the look out on your recommended pairs.
Hello Steve, I don’t know much about this cloud. How can I find out more about the Ichimoku cloud. Second, do you only use this strategy on the short term charts? Id rather not trade on the lower time frames. I would rather trade on 4 hour, daily, weekly, etc. Any suggestions
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Hi coolc23, welcome. Ichimoku was developed to provide a simple and single glance at a chart to identify trading opportunities. IMO, it makes ploughing through numerous charts very quick and easy. You could find out more by accessing Youtube.
My strategy is intraday, using the daily chart, 1hr and 15 minute. I line up these charts to obtain 3 ducks in a row compliance - all must be in synch, or no trade. Yesterday was a perfect set up with a couple of JPY pairs and profitable.
However, I understand Ichimoku will work best on the daily chart, profit wise, as do most longer term pro strategies, and that chart is my initial glancing review.
Hope that helps. .
@coolc23 Hi, the following video can quickly allow you to grasp the importance of Ichimoku Kinko Hyo.
https://www.youtube.com/watch?v=oq_MuUkWG-c&t=1s
Normally the Ichimoku is use for long time frame trading, however steves369 strategy seems to work in 1 hr chart and I am currently experiencing.
Hope the link helps 
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