Ichimoku H4 D1 trading system | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

MTF Ichimoku System 166 replies

MA, Gann and Ichimoku system (profitable system!) 60 replies

Need help to improve Ichimoku Kinko Hyo as Trading System 12 replies

Ichimoku a240 system 118 replies

Ichimoku trading system 77 replies

Attachments: Ichimoku H4 D1 trading system
Exit Attachments

Ichimoku H4 D1 trading system

  • #1
  • First Post: Dec 29, 2014 9:26am Dec 29, 2014 9:26am
Hello everyone,

I had decided to post a Ichimoku trading system here. I know there is another Ichimoku system started by Petr.K; but any similarity is purely coincidental. This system is backtested over several pairs and have shown profitable results over months. This system is quite mechanical. Below are the details.

Timeframes to trade : H4, D1
Trend: For H4 - look at higher time frames D1 and W1 to be above kumo (for uptrend) or below kumo (for downtrend) to long or short
For D1 - we look at W1 and MN

Breakouts traded : 1) Kumo (cloud breakout) 2) Kijun breakout 3) Tenkan/Kijun crossover
Criteria to enter trade : Strong bullish/bearish candle for long/short during the breakout/crossover
Exit at recent high/low, with a reasonable R:R
  • #2
  • Dec 29, 2014 9:34am Dec 29, 2014 9:34am
This system can be used on any currency pair, as long as the above mentioned criteria is met for the trend. However, to zoom down to specific pairs for trading, let's look at setup on the stronger/strongest pairs vs the weaker/weakest pair.

You can use any strength indicator to find the pairs.


Currently - strong pairs on weekly chart - USD, GBP.
weak pairs on weekly - AUD, JPY.
thus look for possible setups to sell AUDUSD, buy GBPAUD, buy USDJPY, buy GBPJPY on H4

for monthly - strong USD, NZD vs weak AUD, JPY
D1 - sell AUDUSD, sell AUDNZD, buy USDJPY, buy NZDJPY
  • #3
  • Dec 29, 2014 9:51am Dec 29, 2014 9:51am
Quoting Mattrix83
Hello everyone, I had decided to post a Ichimoku trading system here. I know there is another Ichimoku system started by Petr.K; but any similarity is purely coincidental. This system is backtested over several pairs and have shown profitable results over months. This system is quite mechanical. Below are the details. Timeframes to trade : H4, D1 Trend: For H4 - look at higher time frames D1 and W1 to be above kumo (for uptrend) or below kumo (for downtrend) to long or short...
Hi Mattrix83, I'm very interested in your system... Can you show the data of the test over months?
  • #4
  • Dec 29, 2014 10:25am Dec 29, 2014 10:25am
Hi Mattrix83,

I'm very interested in your system.
Could you show some picture to prevent setups of this system?

Thanks,
  • #5
  • Dec 30, 2014 6:28am Dec 30, 2014 6:28am
Quoting BlackShark
{quote} Hi Mattrix83, I'm very interested in your system... Can you show the data of the test over months?
Thanks for your interest. Attached is my backtest for four of the pairs over 6-8 years on D1 based on 1% risk. The expected outcome is approximately 1% for each trade taken. of cos there are times of consecutive losses, for example, EJ. Not alot of trades, but if you have a chart to monitor all pairs, it can be significant.

but of cos, this is just backtest

Attached Image (click to enlarge)
Click to Enlarge Name: backtest.jpg Size: 104 KB
  • #6
  • Dec 30, 2014 6:33am Dec 30, 2014 6:33am
Quoting dinhienhy
Hi Mattrix83, I'm very interested in your system. Could you show some picture to prevent setups of this system? Thanks,
What we don't trade.
1) during the breakout, the candle is not strong. say one with large shadows.. if this is the case, we can wait for next candle to enter, if it shows strong bullish/bearish.
2) Entry candle is a small candle - if we decide to enter, we should set the SL at the previous high/low of the previous candle, instead of the high/low of this entry candle.
3) Tenkan/Kijun crossover - it's an uptrend but the entry candle is bearish
  • #7
  • Dec 30, 2014 6:39am Dec 30, 2014 6:39am
H4 UJ - price is below the Kijun. it will be a valid setup if it close above 120.

Attached Image (click to enlarge)
Click to Enlarge Name: UJ H4.jpg Size: 251 KB
  • #8
  • Dec 30, 2014 8:17am Dec 30, 2014 8:17am
Why did u make the same thread as he ? http://www.forexfactory.com/showthread.php?t=518450
Only different is that u obviously dont using chikou span .
  • #9
  • Dec 30, 2014 8:54am Dec 30, 2014 8:54am
Quoting Krrna
Why did u make the same thread as he ? http://www.forexfactory.com/showthread.php?t=518450 Only different is that u obviously dont using chikou span .
had already mentioned that i did not copy his strategy; and i did backtest before for this. I believe there are more differences than just chikou span. i do not add on to positions, and do not use other indicators.
  • #10
  • Dec 30, 2014 9:50am Dec 30, 2014 9:50am
H4 - price alert - AUDUSD 0.8150, USDJPY 119.6, GBPJPY 186, GBPAUD 1.9070
  • #11
  • Dec 30, 2014 11:03am Dec 30, 2014 11:03am
Waoo.. following
  • #12
  • Dec 30, 2014 6:31pm Dec 30, 2014 6:31pm
Quoting Mattrix83
H4 - price alert - AUDUSD 0.8150, USDJPY 119.6, GBPJPY 186, GBPAUD 1.9070
UJ and GJ hit price alert level but Kijun levels at 119.80 and 186.4 are the real levels to enter. let's wait and see
  • #13
  • Edited Jan 1, 2015 7:37am Dec 31, 2014 11:27am | Edited Jan 1, 2015 7:37am
entered on UJ. TP 120.68, SL 119.35

entered at 120.83
had entered 1 lot - should have entered on 2 lots based on 1% risk. will enter another lot when market opens.
  • #14
  • Jan 2, 2015 3:58am Jan 2, 2015 3:58am
entered another trade 2.5 lot for AUDUSD. short 0.8130, TP .8070 based on pivot level and SL .8169. not too good at the moment but let's see how things go
  • #15
  • Jan 2, 2015 5:56am Jan 2, 2015 5:56am
If you had entered on GU with this system two candles ago, would have gotten a TP trade, or one with a good trailing stop. My backtest on D1 had quite consistently showed average gains of 4-5% per year per pair. Had not tried with H4, but I would be expecting more trade setups. And it make good sense to take valid setup on all/any pairs
  • #16
  • Jan 2, 2015 6:44am Jan 2, 2015 6:44am
Hi Mattrix83, I'm currently in situate with my trading strategy and have been fond of using the Ichimoku system as it works really well for trending pairs. One thing I was going to suggest is if you look up FerruFX on here, he has made a selection of indicators whereby you can display multiple timeframes of the same indicator on one chart. I'm using his Ichimoku one which displays the Daily/Weekly whilst I have the 4HR chart on display. Just figured I'd mention it so that you can handly keep everything on the same chart for each pair.

Subscribed!
  • #17
  • Jan 2, 2015 7:29am Jan 2, 2015 7:29am
Quoting Nednones
Hi Mattrix83, I'm currently in situate with my trading strategy and have been fond of using the Ichimoku system as it works really well for trending pairs. One thing I was going to suggest is if you look up FerruFX on here, he has made a selection of indicators whereby you can display multiple timeframes of the same indicator on one chart. I'm using his Ichimoku one which displays the Daily/Weekly whilst I have the 4HR chart on display. Just figured I'd mention it so that you can handly keep everything on the same chart for each pair. Subscribed!...
thanks pal. i am interested to know more about your strategy if you are willing to share.

Thanks for the suggestion. Are you referring to this trade? http://www.forexfactory.com/showthread.php?t=94942
  • #18
  • Jan 2, 2015 7:37am Jan 2, 2015 7:37am
Hi Mattrix83, not that one, the one below which is a selection of standard MT4 indicators but for multi timeframe analysis, if you look at the thread you'll see that you can set multiple time frames on the same chart window (all be it on a separate indicator window below your main chart). Great for people who use laptops and don't have multiple screens for viewing the same currency pair but at different pairs if that makes sense?

http://www.forexfactory.com/showthread.php?t=418662
  • #19
  • Jan 2, 2015 8:53am Jan 2, 2015 8:53am
Quoting Nednones
Hi Mattrix83, not that one, the one below which is a selection of standard MT4 indicators but for multi timeframe analysis, if you look at the thread you'll see that you can set multiple time frames on the same chart window (all be it on a separate indicator window below your main chart). Great for people who use laptops and don't have multiple screens for viewing the same currency pair but at different pairs if that makes sense? http://www.forexfactory.com/showthread.php?t=418662
i use laptop and sometimes even mobile to trade! guess this tool will come in handy. thanks!
  • #20
  • Jan 2, 2015 9:08am Jan 2, 2015 9:08am
just a review of UJ trade.
Attached Image (click to enlarge)
Click to Enlarge Name: UJ TP trade.jpg Size: 224 KB


i will give it a 4/5 star trade. it was quite a brainless entry point. .strong candle, just enter.

TP is at recent high ... approximately 120.70. that give a 1:1.5++ R:R.. my criteria is 1.5. so i will enter

i gave myself a 4/5 for two reasons.
1) sloppy entry - entered wrong number of lots. entered only 1 lot instead of 2 lots
2) same reason as above - my lot size isn't accurate. my SL is 50 pips but because this is UJ, my lot size should be slightly more than 20 pips.
Thus despite me having a TP of more than 1.5 SL, my % gain is only 1.495%.

this can be improved.

if you see my graph, there is another arrow which i put. It was another kijun breakout. Will i take it? no.. for 3 reasons
1) not a valid breakout; the candle did not open BELOW the kijun, one criteria for breakout.and the candle stalled just below the kumo.
2) i had taken a previous trade based on kijun breakout, I would not want to risk another trade for the same type of breakout.
3) TP to recent high aka 120.70 does not give a 1:1.5 R:R; you can look back more to find a better TP but owning to the previous two reason, it is no trade.

and if you see the next candle - kumo breakout. Will i take that trade? i missed it but i might take it - that is, yes or no.
YES
it is a different breakout, so it's valid. i will take it if I had taken the kijun breakout trade (which i did). TK is moving up, there will be additional support

NO
not enough room to go based on recent high (120.70) but if you move back to all time high, around 121.56, there is a 1:1.8 R:R. can take.
0 traders viewing now