Interesting expert Advisor, which should be paid special attention. It interested me by the fact that there are no hints of martingale and Ichimoku indicator is relatively rare. The developers of robots try to squeeze the maximum benefit from classic technical analysis tools, while Ichimoku indicator is attributed to trivial. By the way, about the manual strategy and the concept of the cloud it was already described in our article.
Ichimoku indicator and rational money management
What is money management, I think, you know, even if you are the novice trader. Remember, this is the set of rules of risk and money management, time and trade. Lot calculation, the length of the stop-loss risk percentage of deposit — these are all elements of money management. And it is no secret that error in money management can reduce the loss of any, even the notoriously profitable strategy (or robot).
Developers of Ichimoku Chinkou Cross were able to combine into one:
- classic Ichimoku (adding a bit of highlight);
- rational money management.
The result was an interesting Advisor that could bring 56,9% of the profits in 7 months of testing. Recommended deposit — $ 1,000, the maximum drawdown was 36 and 49%.The robot works on volatile pairs (for exotic currency pairs there are only few advisers), the timeframe is H4.
The transaction is opened under the condition that the line Chinkou crossed the price line (if the price intersects from below — buy, the top — selling). As a confirmation of opening of position the position of the line Kumo in relation to price is analyzed.
The indicator settings:
- Tenkan (9), Kijun (26), Senkou (52) — basic setup of Ichimoku itself. The numbers in brackets — the basic settings of the indicator;
- ММ — when this mode is enabled based on the ATR indicator the lot calculation in automatic mode will be performed;
- ATR_Period — period of corresponding indicator for the automatic calculation if MM option is enabled;
- ATR_Miltiplier — the multiplication factor values of the indicator;
- Risk — the risk percentage of the Deposit amount. Works in case of activation the MM parameter;
- FixedBalanse — also works when you activate MM. During the position size calculation this value will be used, if it is greater than “0”;
- MoneyRisk — the amount of risk in the currency of account;
- UseMoneyInsteadOfPercentage and UseEquityInsteadOfBalance- the parameters that change the risk calculation in accordance with the previous parameters.
As you can see, the indicator settings are divided into two parts: the Ichimoku indicator settings and money management. Moreover, if it is recommended first to leave the basic settings of the Ichimoku, the whole point in tuning is to adjust money management.
Summary. The Ichimoku indicator was proposed in the 1960-ies, and its development took several years. Domestic traders use it rarely, considering the indicator is too complex (that is, giving a rare entry signals). But that is its advantage in conjunction with proper money management. Even if you don’t like this Advisor, I recommend to pay attention to this indicator. It is reliable, in case of calm and stable markets, which is also important.