[QUOTE=“lexys;705669”]John, if it’s of any interest or relevance to you, for your demo testing, another established exit method for trading systems of this kind is to trail the stop “one spread” (e.g. typically one pip, for a retail trader using EUR/USD) beyond the position of the Kijun Sen line 3 periods before the current bar/candle. I’ve found this, overall, at least as good as any other exit method, and better in the long term than many. It sounds (at first glance) as if you’d be moving the stop “all the time” but it really isn’t as inconvenient as that, given that the Kijun Sen is quiet often flat for several consecutive periods.[/QUOTE]
Thanks, very interesting. I’m struggling quite a lot with exits, 'll try that.
Well no, what I do is when price reaches three times risk (R3) I will trail the stop very close regardless of the previous fractal, that leaves room for price to keep moving further into profit but locks in at least the R3 profit.
Very interesting discussion around Ichimoku, hopefully a few older traders can contribute to this. Ichimoku best works on Japanese pairs. In Japan all traders use is Ichimoku, with about 40% of retail FX traders residing in Japan, Ichimoku is an interesting indicator.
Like all indicators it will lag. Also getting a descent exit could be tricky. It is always best to exit when either there is a change in Ten Kan or Kijun Sen lines or Chikou Span changes or price returns to the cloud (IMO at this point it is too late) as this denotes neutrality. That said, I prefer volume trading when looking at other pairs.
Daily charts tend to offer the best results if you keep in mind trade location. It is hopeless entering once the full trend is underway, best to get price as it exits the cloud, even then you may find volume useful in judging the strength of the move.
Not my own experience at all, if you’ll excuse my mentioning it. I find it very successful on GBP/USD and EUR/USD and even on USD/CAD, but I’ve never managed to find any edge with it on GBP/JPY, EUR/JPY or USD/JPY.
It’s commonly used for stock-trading there (which is what it was originally designed for). The people I know trading Forex in Tokyo, and for Japanese banks in London, don’t use it.
This tends to be true of all trend-following forex-trading methods, I think? Longer time-frames give fewer false signals, as the proportion of “signal to noise” is rather better over longer-term time-frames. If anything, this seems to me actually to be [U]less[/U] true of Ichimoku than it is of many other indicator-based methods, though: my own successes with it are on M15 charts.
(One is well advised to amend the settings, using it for forex, needless to say: the original settings were applicable to trading stocks from daily charts, and are also based on 6 trading days per week in Japan, from when they still traded on Saturdays. )
Nice to see a similar trading system as mine. I use EMA(55) instaead of 21 as Kijun Sen is already 26 periods average. Also RSI period is 21. The rest all are same. Yes I also endorse this setup as a solid one for a steady profitable future.
Thanks Amsin, how are you doing with the system so far ? I’ve had a long period of break because I moved from one country to another, I’m now back trading, trying to close the year with a performance as close as possible to +30%, currently at +37%; fingers crossed.
Best wishes to you:57::
I have created an indicator on MT4 for this strategy.
can you send me your email,
I will send you the file.
I need your check the indicator to make sure it is correct follow your idea.
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