Ichimoku Strategy: Japanese "Ichimoku Cloud" Trading Above the Clouds
Nickname: Cloud Master / Japanese Old Master
Career: Trend Following + Technical Analysis
Timeframe: 5 Minutes
1. What's This Strategy?
Ichimoku (Ichimoku Cloud) is a Japanese-invented all-around technical analysis tool, like a "five-star hotel" — complete facilities, everything you need!
Core logic:
- Tenkan crosses above Kijun + Cloud is red → Buy!
- Sell conditions? Not written! 😅
2. Core Settings: Trailing Stop Is the Highlight
Take-Profit Rules
ROI = 100% (theoretical value)
Translation: Set very high, actually relies on trailing stop to exit 🎯
Stop-Loss Rules
-10% hard stop-loss
Trailing Stop ⭐⭐⭐⭐⭐
Activates after profit > 2%
Auto-close on 1% pullback
Translation: Made money? Don't rush to run — let it fly! 🚀
3. Ichimoku Cloud: The Secrets of Five Lines
This strategy has five core lines, like five parts of a symphony orchestra:
| Line | Name | Plain English |
|---|---|---|
| Tenkan | Conversion Line | "Short-term young gun" (9 periods) |
| Kijun | Base Line | "Medium-term old timer" (26 periods) |
| Senkou A | Leading Span A | "Cloud upper edge" |
| Senkou B | Leading Span B | "Cloud lower edge" |
| Cloud | Cloud | "The area between two lines" |
Buy Conditions
(Tenkan yesterday < Kijun yesterday) & (Tenkan today > Kijun today) & (Cloud is red)
Plain English:
"Short-term line crossed above medium-term line + Cloud was previously empty → Buy!"
Translation in human terms:
- Tenkan > Kijun = "Short-term player overtook medium-term player — momentum's up!"
- Red Cloud = "Previously a downtrend, might now reverse"
4. Protection Mechanisms: Relying on Trailing Stop
| Protection Type | Function |
|---|---|
| Trailing stop | Activates after profit > 2%, auto-runs on 1% pullback |
| Hard stop-loss | Force close at 10% loss |
RATING: Has trailing stop but lacks technical-level protection, missing a soul 🚧
5. Sell Logic: A Big Pitfall!
Serious Problem
# Sell Conditions
dataframe.loc[(), "sell"] = 1 # Empty!
This strategy has no explicit sell conditions!
How Does It Actually Exit?
| Exit Method | How It Triggers |
|---|---|
| Trailing stop | Profit > 2%, 1% pullback |
| Hard stop-loss | Down 10% |
| Who knows | Sell conditions unclear |
Rant: It's like buying a car without brakes — too dangerous! 🚗💨
6. Strategy "Personality"
Pros (Praise Section)
- Japanese original: A classic strategy validated by decades of market use
- Comprehensive analysis: Trend, support, resistance all at once
- Cloud visualization:一眼看出哪里是"坑"
- Trailing stop: Knows how to protect profits
Cons (Rant Section)
- Sell conditions not written: A fatal flaw!
- Fixed parameters: 9, 26, 52 may not suit all coins
- Complex to learn: Five lines going in circles
- Has lag: By the time the signal appears, it might be late
- Doesn't work in oscillation: Goes crazy during consolidation
7. How to Read the Cloud?
┌─────────────┐ ← Senkou A (upper edge)
│ Cloud │
└─────────────┘ ← Senkou B (lower edge)
Price above Cloud = Strong uptrend ☀️
Price below Cloud = Strong downtrend 🌧️
Price in Cloud = Oscillating ☁️
8. Who Is It For?
| People | Suitability | Reason |
|---|---|---|
| Technical analysts | Excellent | Rich indicators |
| Beginners | Not suitable | Sell conditions unclear |
| Lazy folks | Moderate | Need to set sells yourself |
| Steady pursuers | Moderate | Trailing stop is decent |
9. How to Improve?
Must Fix!
- Write clear sell conditions: e.g., sell when Kijun crosses below Tenkan
- Set take-profit points: e.g., 5% fixed take-profit
Suggested Fixes
- Add RSI confirmation: Don't rush, wait for RSI to配合
- Time filtering: Don't trade late at night
- Multi-timeframe: Check 4-hour trend to confirm direction
10. Summary
Ichimoku is like Japanese cuisine:
- Delicate, classic, profound
- But missing the "sell" course
- Need to add your own ingredients to eat well
One-liner: Cloud Master has deep skills — but remember to write the sell conditions yourself! 🍣
11. Quick Start Guide
Buy signal:
Tenkan crosses above Kijun + Cloud is red = Buy!
Sell signal:
Figure it out yourself (original strategy didn't write it) 💀
Suggested sell:
Tenkan crosses below Kijun = Sell!
Document generated: 2026-03-23
12. Want to Run This Strategy?
Configuration
minimal_roi:
"0": 0.10
stoploss: -0.05
13. Final Warning ⚠️
Risks
Complex = Need understanding!
My Suggestions
1. Test with small money
2. Understand the indicators
3. Diversify investments
Remember: Complex strategies need testing too! 🙏
Final Reminder: Test with small positions! 🙏