Ichimoku / Kijun Sen strategy | Forex Factory

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Ichimoku / Kijun Sen strategy

  • #1
  • First Post: Apr 14, 2010 8:37am Apr 14, 2010 8:37am
Hello every one. I am a FF member for years now and I would like to contribute to this very good site by describing one of my strategies I used to apply. I did not backtest it, but trade it for real. Any help to backtest would be appreciate of course.

So, here is the stategy :

Pairs : Eur/usd - eur/jpy - gbp/jpy - gbp/usd - usd/jpy
TF : any but the longer the more reliable it is (less false signal)
Long entry : Price crosses the kijun Sen upward AND Chikou Span is above price action
Stop : The last swing low and move the stop with Kijun Sen (5-10 pips under it) as soon as it moved 20-30. Or, for trend followers (and especially if cross happened above the cloud) it could be 5-10 pips under the cloud. It's up to you and depends on your MM.
Exit : If it is crossing under the cloud, the first target would be the cloud (Senkou Span - first resistance) - If it is crossing above the cloud, then we can exit when price crosses downward the Kijun Sen.
P.S. : If cross is happening within the cloud, I would prefer to wait for a close above the cloud to reduce risk.
P.P.S.: If the ratio TP/SL is under 1,5, then I don't trade and wait for the next opportunity : I prefer to be flat than in a bad trade !

You reverse for short entry.

All comments are welcome. I will try to answer the questions about this system as fast as possible, but I have a regular job so please forgive any late answer....and my poor english too
  • #2
  • Apr 14, 2010 8:46am Apr 14, 2010 8:46am
Have you tried Ichimoku on Renko charts?
Cheers
  • #3
  • Apr 14, 2010 10:13am Apr 14, 2010 10:13am
Quoting hmaoui
Stop : The last swing low and move the stop with Kijun Sen (5-10 pips under it) as soon as it moved 20-30. Or, for trend followers (and especially if cross happened above the cloud) it could be 5-10 pips under the cloud. It's up to you and depends on your MM.
Should depend on timeframe... 5-10 pips may suit to H1-Chart

Quoting hmaoui
P.P.S.: If the ratio TP/SL is under 1,5, then I don't trade and wait for the next opportunity : I prefer to be flat than in a bad trade !
How will you calculate the ratio if crossing is above the cloud? You don't know your TP in this case!


What are your result when trading this? Do you consider the higher timeframes?
  • #4
  • Apr 14, 2010 10:39am Apr 14, 2010 10:39am
Quoting Darth Vader
Have you tried Ichimoku on Renko charts?
Cheers
....I will check
  • #5
  • Apr 14, 2010 10:48am Apr 14, 2010 10:48am
Quoting nightyhawk
Should depend on timeframe... 5-10 pips may suit to H1-Chart

Not necessary even if I trade it !

How will you calculate the ratio if crossing is above the cloud? You don't know your TP in this case!

In this case, the probability of success is higher because the cross is above the cloud (ref. to Ichimoku nature system - cloud is a strong barrier). So, according to my initial stop loss, I will put my first target at 1,5xSL. For example, if my SL is 25 pips, I will put my first target at Entry + 38 pips. Also, I can use a timestop : if it does not...
Higher TF would be nice but I have a mini account so I don't have enough money to put large stop (it may be necessary). Results are positive since a year with +82%
  • #6
  • Apr 15, 2010 7:39am Apr 15, 2010 7:39am
...a good opportunity ! You can see Prices broke the Kijun Sen line at 0:45 (UTC) but it was above the cloud with a sell signal (and Chikou confirmed) and the next target was already reached as it is the cloud. Also be careful when poor trading hours.... So we can wait for the next signal which could be a very good opportunity as prices crssed downward the cloud at 4:30 (UTC). So if prices retraces back and cross downward again the Kijun, it means we can get a good entry point coz we enter at a pullback. Pullback comes at 6:30 (UTC) and the close of the next candle is our entry point. Our SL is at the last high of the previous candle which is 1.3648 (according to our rule). SO we enter at 1.3627 with a risk of 22 pips. Our first target could be 1.3594 and we can let the rest of the position until it crosses upward Kijun sen or the cloud (according to each trader).
Attached Image (click to enlarge)
Click to Enlarge Name: Fx.JPG Size: 200 KB
  • #7
  • Apr 15, 2010 8:00am Apr 15, 2010 8:00am
Thnaks for the post.. Please attach the indicators involved.. Thanks
  • #8
  • Apr 15, 2010 8:57am Apr 15, 2010 8:57am
....I also use the DMI sometimes to get the direction of the trend. But not necessary.
  • #9
  • Apr 15, 2010 9:01am Apr 15, 2010 9:01am
I placed my SL at 7 pips under kijun Sen. Be stopped at 1.3558. So 1 lot with +33pips, and 1 lot with +65 pips.

Hope all is clear. If there is a question I will try to answer.
  • #10
  • Apr 15, 2010 9:05am Apr 15, 2010 9:05am
Quoting Ashish_Ampl
Thnaks for the post.. Please attach the indicators involved.. Thanks
Hi Ashish. The indicator under the graph is DMI but it is not necessary to focus on it. It is just an help to get the trend confirmation.
If you are talking about an EA, I did not develop one coz I am not able to do it. But your help would be appreciate.
TX.
  • #11
  • Apr 15, 2010 9:20am Apr 15, 2010 9:20am
Quoting hmaoui
I placed my SL at 7 pips under kijun Sen. Be stopped at 1.3558. So 1 lot with +33pips, and 1 lot with +65 pips.

Hope all is clear. If there is a question I will try to answer.
The graph attached
Attached Image (click to enlarge)
Click to Enlarge Name: SL.JPG Size: 202 KB
  • #12
  • Apr 15, 2010 1:37pm Apr 15, 2010 1:37pm
Quoting hmaoui
Hi Ashish. The indicator under the graph is DMI but it is not necessary to focus on it. It is just an help to get the trend confirmation.
If you are talking about an EA, I did not develop one coz I am not able to do it. But your help would be appreciate.
TX.
Define the rules and I will write an EA
  • #13
  • Apr 18, 2010 4:13pm Apr 18, 2010 4:13pm
Quoting nightyhawk
Define the rules and I will write an EA
I think I gonna send you a pm with all rules clearly defined. As soon as possible you will be able to write an EA. TX.
  • #14
  • Apr 19, 2010 9:51am Apr 19, 2010 9:51am
This is an interesting take on Ichimoku [which I have studied extensively].

How have you fared in the last couple of months with this strategy?
  • #15
  • Apr 19, 2010 1:03pm Apr 19, 2010 1:03pm
"Price crosses the kijun Sen upward AND Chikou Span is above price action"

Do the right conditions have to be met at the time of the cross, or is it ok to wait for chinkou span to be above price action (see pic)?

http://i44.tinypic.com/152onxg.jpg
  • #16
  • Apr 19, 2010 1:49pm Apr 19, 2010 1:49pm
This is my humble view.
Kijun cross with a Chikou valid position.
I'm using this for gold only by the moment
Attached Image (click to enlarge)
Click to Enlarge Name: gold2.gif Size: 33 KB
  • #17
  • Apr 19, 2010 8:53pm Apr 19, 2010 8:53pm
As I understand the method, it doesn't look good to enter short even if Chinkou Span goes below price action because there won't be enough room for profit (too close to the cloud compared to the risk located at the last swing high). So I should enter only if price closes below the cloud or if price retraces back upwards and crosses Kijun-sen again (and Chinkou Span above price action). I'll wait and see.

http://i41.tinypic.com/f3che1.jpg
  • #18
  • Apr 20, 2010 4:18am Apr 20, 2010 4:18am
Quoting chamane
"Price crosses the kijun Sen upward AND Chikou Span is above price action"

Do the right conditions have to be met at the time of the cross, or is it ok to wait for chinkou span to be above price action (see pic)?

http://i44.tinypic.com/152onxg.jpg
According to the rules you have to get a confirmation of the Chikou Span. Also, you must be careful with the cloud as a TP and compare it with the SL needed. If the ratio TP/SL is not in your favor, you don't take the trade. Doing so, you will increase the number of successful trades.
  • #19
  • Apr 20, 2010 4:19am Apr 20, 2010 4:19am
You get it !

Quoting chamane
As I understand the method, it doesn't look good to enter short even if Chinkou Span goes below price action because there won't be enough room for profit (too close to the cloud compared to the risk located at the last swing high). So I should enter only if price closes below the cloud or if price retraces back upwards and crosses Kijun-sen again (and Chinkou Span above price action). I'll wait and see.

http://i41.tinypic.com/f3che1.jpg
  • #20
  • Apr 20, 2010 4:20am Apr 20, 2010 4:20am
This is a perfect entry point, confirmation of Chikou AND below the cloud so it would be a high chance of success trade...

Quoting Darth Vader
This is my humble view.
Kijun cross with a Chikou valid position.
I'm using this for gold only by the moment
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