I risked Ichimoku Cloud Trading Strategy 100 TIMES Here’s What Happened… ( Indicator Strategies )
- Articles, Blog

I risked Ichimoku Cloud Trading Strategy 100 TIMES Here’s What Happened… ( Indicator Strategies )

Does Ichimoku Cloud indicator trading strategy
even work? Are online trading guru’s telling you false
information? I have wasted years testing every trading
strategy out there, before i found the right one, that worked! I’ve created this channel to expose every
strategy, and show their real probabilities, so you don’t have to waste your precious time
like i did! I’m not here to sell any kind of online course,
I’m just here to help you in your Stock trading and Forex trading career. If you find this video helpful, consider subscribing
to support the channel! In this video i will back-test 100 times,
a very famous trading strategy called the Ichimoku Cloud strategy. Yes you heard it right. testing 100 times takes time, and will most
likely prove, if you should risk your hard earned money, using this strategy! This video will be very similar to the RSI
and MACD video i made a while ago. If you want to know if those strategy work
after testing 100 times? Check those videos out. If you are new to trading, don’t get scared
away after looking at this indicator. On trading view, The Ichimoku Cloud indicator
will look something like this. I know, a big mess. I have already made a video on the basics. If you have never heard about this indicator,
check out my previous video where i explain this indicator in detail. If you remember, in my last Ichimoku Cloud
video, I said, this green lagging span was optional, and most traders don’t use it. In this video, I have not used it to backtest,
because it make things more confusing. The Ichimoku Cloud indicator will come with
5 lines. A blue line, called the conversion line. A red line, called the Base line. A green line, called the lagging span. And two other lines that form the Cloud. Also, The Ichimoku Cloud trading strategy
is really simple, but in the last video, we have modified it, to filter false signals. Here’s how the modified strategy goes. If the Price is above the cloud, and also
above the 200 period moving average, and the blue line is crossing above the red line,
we will buy as soon as the crossover happens. In the long setup, set your stop loss, just
below the base line. Similarly, If the price is below the cloud,
and also below the 200 period moving average, and we see the Blue line crossing below the
red line, we will sell as soon as the crossover happens. In the short setup, set your stop loss just
above the base line. This might sound confusing, but only take
trades when price is below the cloud and the crossover signal. Don’t take trades, when the conversion and
base lines show a crossover, but the price is between the Cloud, and the crossover signal. Here’s an example. Avoid taking trades when the entry signal
looks something like this. In this long example, when crossover signal
was generated, the price was below the conversion and base lines. Only take trades, when the signal looks something
like this. Here, In this long example, when the crossover
signal is generated, the price is above the cloud and the crossover signal. Here’ are few more important changes I found,
that will improve the win rate of this Strategy, and will make it less confusing. First of all, I have made the Cloud opaque,
so we won’t be able to see, the candles, that form inside the cloud. Our strategy says, not to take trades when
price is inside the cloud. Secondly, I have removed the lagging span,
and have used the 200 period moving average. The cloud on the Ichimoku indicator, is there
to show the trend direction. But we will use the 200 period moving average,
to filter false signals, and to find the direction of the long term trend. So, the question is. If you enter trades using Ichimoku Cloud indicator,
will you become a profitable trader? In the next few minutes, i will show you how
the profit graph looks like after taking 100 trades, and how much is the real winning percentage
of the Ichimoku Cloud strategy, and how many losers you can expect in a row. I will fast forward the next clip to save
your time. The following clip can help you understand,
how this strategy looks in different market conditions, so do watch carefully. For back testing, i have used Euro JPY chart,
but i switch to Euro USD near the end. This strategy works on any time frame, and
also works on both Forex, and stock markets. Here, I’m using 30 minutes time frame. I’m also taking sell setup in this example. Strategy for sell setup is very similar to
buy setup. You can see how the win rate and profit graph
changes, as i take more trades. The real win rate will be revealed when we
reach 100 trades or more. There are different ways to set profit targets. Here in this example, profit target was set
1.5 times more, than the risk i was taking. You should always take profit, more than the
risk you are willing the take! If you are wondering, why I’m only taking
1.5 times more profit, and not 2 to 3 times? Well, you see, the Risk to reward ratio, and
Win Rate, are inversely proportional to each other. In other words, If I increase my Risk to Reward
ratio, my win rate will decrease. Because, price will have to make a big move
to reach that profit target. And that doesn’t happen every time. Similarly, if i decrease the risk to reward
ratio, and set the profit target very close to my entry. My win rate will increase. Because, price will have an easier time reaching
my profit target. As you can see on the left, for back testing,
i’m using 10000, as my starting balance. Also, I’m only risking 1 percent of my account
balance, on a single trade. You should only risk 1 to 2 percent of your
account, on a single trade. Otherwise it will be difficult to handle losing
trades, that will come in a row. Money management is the key to success in
this business! In this example. When i lose, i only lose 100. But when i win, i win 150. So, even if i lose one and win one, i will
still make money. Some strategies work on intra day only and
some work better on daily time frame. This strategy however, works on all time frames. Unfortunately, many trading youtubers on YouTube,
will show a hand picked setup to earn trust of the viewer, to sell them a paid course. They won’t mention what’s the probability
of the strategy, so you can manage money, and not blow up your account. Trading is a probability game. If you are not back testing the strategy at
least 100 times, you will have a difficult time with trading, or maybe will never make
money. That’s why I’m here! Reason why i created this channel, is to show
you the real probability of any trading strategy out there. By knowing the probability of a trading strategy,
you can predict how many losers and winners you can have in a row, and manage your risk
per trade accordingly! It took me around 1 hour to back test 100
trades, and while testing, some trades almost came close to hitting the stop loss, before
going back and hitting profit targets. Don’t panic when market is very close to hitting
your stop loss. Losing is part of trading. Whole point of making this video, was to show
you the number of losers, you can have in a strategy. No strategy works 100 percent of time. Even professional traders use strategies,
that only work 60 to 65 percent of time. As i always say, The key to make money is
money management, and trading psychology! Master that, and you can become a professional. Here are the results of the 100 trades. As you can see the win rate of this strategy,
is approximately 53 percent. In this back test. I had 53 winners and 47 losers. I was able to win 8 trades in a row, and lost
5 trades in a row. After 100 trades, I was able to turn 10,000
into 13250. This is the best strategy for new traders. Not only it generated buy and sell signals,
but also gave direction of the trend, and made money at the same time. If you are new, you don’t need to spend time
learning different indicators. Just properly understand this strategy to
make money. Maybe backtest it yourself first. Or maybe use the 200 period moving average
to filter false signals like i did. Whatever you do. just remember money management is the real
key to success in trading. Don’t risk too much on a single trade. The MACD, and Bollinger Bands strategy, that
I tested 100 times, had good win rates like this. Check out my MACD video if you want a better
strategy. Or check out the RSI Strategy video to see
its real win rate. Now you know the win rate of the Ichimoku
Cloud strategy. Remember, I took trades based on the Ichimoku
Cloud indicator, and 200 period Moving average. I also took 1 point five times more profit
than my risk. If you use a different setup, or use a different
risk to reward ratio, your win rate will be different than this. If you reduce the risk to reward ratio, your
winrate will increase, and if you increase the risk to reward ratio, your winrate will
decrease. That’s all. If you want me to test, any other trading
strategy 100 times, Subscribe to the channel. And remember to ring that notification bell
as well, so you don’t miss any new videos. Thanks for watching.

About Ralph Robinson

Read All Posts By Ralph Robinson

7 thoughts on “I risked Ichimoku Cloud Trading Strategy 100 TIMES Here’s What Happened… ( Indicator Strategies )

  1. Great content!! It's always interesting and helpful to see that we can make money with these win rates. Keep it up!

  2. Can you make a video on support and resistance and trend lines guess beginners like me can learn how to draw support and resistance and do a better trade

  3. hi!
    how i can avoid fake out and draw support/resistance?
    Can you test alligator?

    Btw thanks for your help it’s so easy with you !

Leave a Reply

Your email address will not be published. Required fields are marked *