As usual Ichimoku performs a high role in high probability trading and this can be applied to any kind of time frame. The default parameter in this afl code is 3,13, And the cloud chart can be used as a trailing stop loss or your trades. UP GREEN ARROW: Strong signals - A strong Buy Signal occurs when the Tenkan-Sen crosses above the Kijun-Sen from below. UP Bleu ARROW:Normal signals - A normal Buy Signal occurs when the Tenkan-Sen crosses above the Kijun-Sen from below.
In this article, I show three strategies using the Ichimoku trading system. In fact, because the system is so versatile, I look at three different Ichimoku trading strategies. I then show you the results of how these trading strategies perform on the EUR/USD forex pair.I carried out these analyses to find out how good the Ichimoku system is at identifying trends. The trading strategies are simple and do not require any judgement or unique interpretation. Ichimoku Kinko HyoIchimoku is a trading system that originated in Japan.
Developed by journalist Goichi Hosoda, it is designed to help traders identify and trade with the dominant trend. The lines look quite complicated on the chart, but we can easily use them as part of an automated trading strategy. Conversion and Base LineThe red line is the Conversion Line (tenkan sen) and is the quickest to react. The blue line is the Base Line (kijun sen). The Base Line is slower, and we use it for confirmation.
Ichimoku CloudThe most unusual thing about the Ichimoku is the cloud. The cloud is a slow-moving area on the chart that helps to identify the trend and provides support and resistance.The cloud is made up of two lines: Senkou A and Senkou B. Senkou A is the fastest and makes the inner edge of the cloud. Senkou B is slower and forms the outer edge. Chikou SpanThe Chikou Span is the green line.
It is made by plotting the closing price 26 periods back. The Ichimoku Trading StrategiesAll three trading strategies are either long or short. Each trading strategy starts with capital of $100,000.
The rules of the strategies are:. Strategy 1: Trade long when the Conversion Line crosses above the Base Line. Trade short when the Conversion Line crosses below the Base Line.
Strategy 2: Trade Long when the Closing Price crosses above the Base Line. Trade Short when the Closing Price crosses below the Base Line. Strategy 3: Trade Long when the Closing Price crosses above the Senkou Span B line (slow cloud line). Trade Short when the Closing Price crosses below the Senkou Span B line.BacktestBeing able to test your strategies will transform your trading. You will be able to choose the the best and most profitable strategies.
Then trade with confidence, knowing that your strategy has performed well. 123Gross Winning Trades$504,227$168,253$310,503Gross Losing Trades$-351,868$-121,630$-226,297Net Profit$152,360$46,623$84,206Profit Factor1.431.381.37Winning Trade1074449Losing Trades147129230Win Percentage42%25%18%Largest Winning Trade$20,148$20,896$19,413Largest Losing Trade$-5,471$-2,894$-2,946Max Drawdown23%16.4%33%The equity curve of the three strategies combined is: ConclusionAll three of the trading strategies were profitable over the 22 year testing period. This is very encouraging because it shows that, over time, the Ichimoku can be useful in all market types.Looking at the equity curve above it is clear that the strategy performs better when volatility is higher and the trend is strong. The period between 2006 and 2011 was notable for big swings in forex valuation as the dollar alternately weakened and strengthened during the financial crisis. The strategy performs poorly during the period 2011 – mid 2014.
During this time volatility declined as the world’s central banks became the biggest players in the forex markets.
This AFL code is the upgraded vesion of. In the older version its tough to identify the stop loss levels as during buy signals the bottom of the cloud act as trailing stoploss and during sell signal top of the cloud act as a trailing stoploss.Now in the newer version of Ichimoku AFL code we replace the cloud with the trailing stoploss alone so that one can easily identify the current training stoploss and it helps them in better decision making. Also the Dashboard and magnified marketprice are the added features and make it even better.Simple Trading Rules1)Buy on Close above the Ichimoku TSL line2)Sell on Close below the Ichimoku TSL line3)Red Arrows indicates sell signal i.e candle closes below the cloud4)Green Arrows indicates Buy Signal i.e candle closes above the cloudNifty 90 min chartsBanknifty 90 min chartsIchimoku TSL Amibroker AFL code V3.0. Related Readings and Observations. Ichimoku Cloud Charts along with Buy or Sell Signal are shown for Nifty Daily Charts.
Little Bit Optimisation has been done to reduce noise and to catch Earlier Signals in any kind of. Open Range Breakout is a simple strategy which monitors first 5min / 15min / 15min / 30min / 60min range from the start of the market. From the opening high range and low range is. Is there a way where one can identify market regime shift from low volatility zone to high volatility zone and vice versa? How I can identify stocks with increasing volatility? Is there a. Getting the newsfeed directly into my favorite charting software is always been interesting to me.
If you are a news-hungry trader/investor possibly you may be also thinking in the same. Here is a simple Amibroker AFL code snippet which tracks the last trade price with a dashed horizontal line at LTP. It could be useful for the people who wants to know where the current.
Do simple strategies really work in Indian Markets? This curiosity arises when one of our Amibroker Mumbai Participant comes up with a simple trading strategy. Hence the tutorial series,. Rajandran is a Full time trader and founder of Marketcalls & Co-Founder of Traderscafe, trades mostly using discretionary Trading Concepts like Market Profile, Trading sentimental analysis, building timing models, algorithmic trading models. Instructs professional traders, full time traders & aspiring full time traders. Rajandran attended college in the Chennai where he earned a BE in Electronics and Communications.
Amibroker Afl Collection
Rajandran has a broad understanding of trading softwares like Amibroker, Ninjatrader, Esignal, Metastock, Motivewave, Market Analyst(Optuma),Metatrader,Tradingivew,Python and understands individual needs of traders and investors utilizing a wide range of methodologies.