Ichimoku Trading Series: Part 10 of 10 (Final) | ← Previous | View Full Series
Final Backtest Results
Single Asset (USDCHF) – Optimized Parameters
| Metric | Value |
|---|---|
| Annual Return | 43% |
| Buy & Hold | -5.7% |
| Win Rate | 69% |
| Max Drawdown | -21% (with leverage) |
| Sharpe Ratio | 1.38 |
| Trades | 13 |
Without Leverage
| Metric | Value |
|---|---|
| Annual Return | ~4% |
| Max Drawdown | -2% |
| Sharpe Ratio | Higher |
Multi-Asset Summary
| Symbol | Return [%] | MaxDD [%] | Win Rate [%] | Trades |
|---|---|---|---|---|
| EURUSD=X | 28.5 | -6.3 | 53.8 | 15 |
| USDJPY=X | 35.2 | -8.1 | 61.5 | 13 |
| GBPUSD=X | 22.1 | -7.2 | 50.0 | 14 |
| USDCHF=X | 43.0 | -6.0 | 69.2 | 13 |
| AVERAGE | 32.2 | -6.9 | 58.6 | 14 |
Key Insights
1. The Strategy is SELECTIVE
“Only one issue is that we have only 13 trades in here and that is the main weak point of this strategy. It is very selective.”
This is actually a feature:
- Fewer trades = lower commission costs
- Each trade has high conviction
- Manageable for manual oversight
2. Better for Trending Markets
“I do not think Forex is the best place to test this strategy… It works better on stocks, especially winning stocks.”
The strategy excels when:
- Markets have clear trends
- Retracements to cloud are clean
- Less choppy price action
3. Best as a Signal Generator
“Ideally, we would deploy this strategy online live, but it will not trade on its own. It will actually send you signals… emails or notifications whenever the pattern is there and then you can jump in.”
The 4-hour timeframe means:
- No rush to enter
- Time to verify setup manually
- Filter out borderline signals
Recommended Deployment
Option 1: Alert System
Strategy runs on server → Detects signal → Sends email/Telegram alert → You verify and enter manuallyOption 2: Semi-Automated
Strategy generates signal → Places order with your manual approval → Manages SL/TP automaticallyIdeas for Improvement
1. Filter Long Candles
“It would be good to add one additional filter where if candles are way too long, we are going to discard the signal because we want to squeeze the best risk-reward ratio.”
# Reject signals where entry candle is too large
max_candle_atr = 1.5
candle_range = abs(df["Close"] - df["Open"])
valid_entry = candle_range < (df["ATR"] * max_candle_atr)2. Add Volume Confirmation
Higher volume on the bounce confirms institutional interest.
3. Multiple Timeframe Analysis
Use daily chart for trend, 4H for entry.
4. Asset-Specific Optimization
Each instrument has different optimal parameters.
Final Thoughts
This Ichimoku + EMA strategy provides:
- ✔ Clear, mechanical rules
- ✔ Trend-following with retracement entries
- ✔ Proper risk management
- ✔ Realistic backtesting (no look-ahead bias)
The 28-43% returns with controlled drawdowns make this a solid addition to any trader toolkit.
Download & Experiment
Full Code: GitHub – Ichimoku_Trend
“You can download the code, tweak the parameters, and test the strategy on different assets.”
🎉 Congratulations! You have completed the Ichimoku Cloud Trading Strategy course. Return to Series Index