A Trading Strategy using Ichimoku CloudsThis chart contains an explanation and breakdown of a trading strategy I've been following with decent success. The basic idea of the strategy is that in the few days following the event of a ticker meeting all entry requirements, there is likely to be a pop of at least a few %. By taking a long position when the conditions are fresh, we can hope to capture a nice move up and then take profit quickly, moving on to another symbol and repeating the process.
Just in the month of November 2020 I have completed over 70 trades with this system, yielding a win rate of 83% and average win size of 1.89%; during this time I grew the account by 20%. I created the linked indicator (soon to be updated) to help find the entries and set appropriate stops based on recent volatility. The basic method of finding entries on TradingView is to set up the screener with columns for Last, Ichimoku Cloud Conversion, Ichimoku Cloud Base, Ichimoku Cloud Leading Span 1, and Ichimoku Cloud Leading Span 2, plus whatever columns you would like to use to filter the stock universe you want to apply this strategy to. Then set filters in the following configurations:
1. Last crosses up Ichimoku Cloud Leading Span 1 + Ichimoku Cloud Conversion above Ichimoku Cloud Base
2. Last crosses up Ichimoku Cloud Leading Span 2 + Ichimoku Cloud Conversion above Ichimoku Cloud Base
3. Ichimoku Cloud Conversion crosses up Ichimoku Cloud Base + Last above Ichimoku Cloud Leading Span 1 (or Span 2, whichever yields fewer hits)
Flipping through the results from these filter sets with my indicator script on will show you potential entries for this strategy.
There is a lot of room to personalize the strategy to your tastes as well, such as how recently do cloud crossovers and conversion/base crossovers need to be or other ways to set the stop conditions. You can also modify the Ichimoku Cloud parameters, but I've been having good results with the defaults of 26 and 52.
Please feel free to let me know of any successes or issues you have, and I am happy to answer questions about the strategy or the indicator script. Thanks for checking out this tutorial! This information is for educational purposes only.
Clouds
HVQ + QRSI + Clouds - Setting up a narrative; market structureThis video goes through my charting process using the trio of indicator's I've developed to work in concert with each other.
This is the process I use to explore historical price action and develop a narrative to use during my near-future trading activity for that asset.
Just as important as entries and exits, understanding market structure and being aware of potential changes to this structure, before price plays out it's new role, is extremely important.
These visualization tools make it possible to find structural influences within an asset that do not necessarily exist, in a classical sense, on a typical price candlestick chart.
Not explored in this video is how to further use these tools to build risk distribution profiles for any trade, long or short, as well as the use of compound tickers to determine individual asset allocations.
Most technical indicators focus too much on entries and exits while not providing nearly enough insight for aligning those buy or sell conditions with the current market structure and meta-analysis. Take a step into my workflow for setting up a trading environment that focuses more on working with the structure of an asset rather than against it. In this video I build rules for potential entries, stop-losses, and set up a narrative for an asset on some historical data (cheating, I know, but this is "educational" content ;)
QuantRsi, Heffae Clouds, and the HVQ Volatility Index are available via PM, there is also a link with access information in my sig.
For your education and entertainment!
