EA for trading strategy using Ichimoku

Chart setup

·         Ichimoku – default settings (9, 26, 52)

·         EA to display text on top left : last running signal (Long/Short) above price level, active qty, TSL value

EA Parameters

·         Quantity – fixed lots

·         Offset pips – specify (entry order will be placed at high of candle + offset pips or Low of candle – offset pips)

·         Protective SL type – fixed pips / Kijun

o   Pips - specify

o   Kijun – SL be placed 2 pips below the Kijun line (26 period line) for LONG, and 2 pips above for Short positions

·         TP – fixed / auto

o   Partial booking: On/off

§  If ‘ON’ – book 50% qty at TP levels (as listed below under ‘Auto’)

o   Trade exit type:  TP auto / reversal

§  TP Auto:

·         Timeframe H4 – TP will be 90pips

·         Timeframe H1 – TP will be 60pips

·         Timeframe M30 – TP will be 35pips

·         Timeframe M15 – TP will be 20pips

§  Reversal – meaning exit the position when a reversal signal is generated on any of the active trading strategies being traded

In the Ichimoku strategy – we refer to the following parts of the indicator:

1.       Tenkan (T) – 9 period line. The slope of T line represents trend, and a flat T line denotes consolidation and neutral market

2.       Kijun (K) – 26 period line. The slope of T line represents trend, and a flat T line denotes consolidation and neutral market

3.       Kumo cloud (created by two lines – Senkou A and Senkou B): Senkou A is above Senkou B when market is trending UP.  A crossover of the Senkou A and B (meaning A above B changes to A below B – this will represent a change in trend from Bullish to bearish)

Chikou – current price, shifted 26 periods back

Strategy

Long trade setup

·         Signal: T line crosses aboveK line at the close of candle AND Candle close should be ABOVE Tenkan (T) line – for LONG

·         Confirmation criteria : This can take a few candles – so, EA should check each candle after the signal candle for confirmation, and enter a trade when validation is achieved on the close of candle

o   Chikou: Establish Chikou is ‘free’, meaning that Chikou value should be above high of the candle 26 periods back for LONG trades

·         Entry: Buy ABOVE high of signal candle @ pending order (High of candle + Offset)

·         Stop loss: Initial stop loss as per ‘Protective stop loss’

·         Trailing SL: Value of Trailing SL = value of Kijun line; Update trailing SL after every candle

·         Exit (either of the criteria below)

o   Initial protective SL hit, OR

o   TP achieved (if selected under TP Type)

§  Timeframe H4 – TP will be 90pips

§  Timeframe H1 – TP will be 60pips

§  Timeframe M30 – TP will be 35pips

§  Timeframe M15 – TP will be 20pips

o   Hit trailing SL on Kijun line

o   Reversal – SHORT reversal signal, i.e. TK cross below AND candle closes BELOW Tenkan line

·         Re-entry

o   Re-entry only valid if no open trades

o   Re-entry may be required if the initial entry gets stopped out due to a quick price movement against the trade but still the larger trend remains the same

o   Criteria:

§  Tenkan line should be above Kijun line, AND

§  Candle close ABOVE Tenkan line (for LONG)

§  Chikou: Establish Chikou is ‘free’, meaning that Chikou value should be above high of the candle 26 periods back for LONG trades