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Ichimoku Kinko Hyo Expert Advisor

May 29, 2013 (Last updated on December 3, 2016) by Andriy Moraru

In my opinion, Ichimoku Kinko Hyo is one of the most underused technical indicators (4th least popular Forex indicator out of 13 in this poll). Yet it seems to be rather powerful and its usage is not that complex after you get some basic understanding of its five components.

After studying some trading strategies based on Ichimoku, I have tried to create a profitable trading robot that would be based on this indicator. The resulting expert advisor is using only three lines for entry and exit signals — Chikou (which is a current Close shifted backwards), Senkou Span A and Senkou Span B (which together form Kumo cloud). The strategy is to buy when Chikou crosses Close from below with confirmation coming from Kumo. Cross should happen above Kumo or Chikou should eventually come above Kumo, and the current price should close above Kumo. Sell signals are the same but mirrored. There is no stop-loss and no take-profit — positions are exited when a signal in the opposite direction is generated. Exit signal does not need to be confirmed.

In addition to Ichimoku Kinko Hyo, this EA relies also on Average True Range indicator to size its positions. Of course, plain fixed position sizes are available too, but the ATR-based risk positioning makes things look much more shiny.

The trend-following strategy is very long-term. I have tested it on many currency pairs on the period from Jan 1, 2001. Only EUR/USD has shown noteworthy results. Here is the report for daily timeframe backtest:

Ichimoku Chikou Cross Performance on EUR/USD @ D1 with Fixed Position Sizing

As you can see, the balance curve is not very impressive. ~67% over more than 12 years is not a very good result. That was with the fixed position size (0.1 lot). Now, the same test but with ATR-based position sizing enabled with 2% risk size:

Ichimoku Chikou Cross Performance on EUR/USD @ D1 with ATR-Based Position Sizing

The net profit looks much better now, doesn’t it? ~238% over 12 years is something worth accomplishing.

Still many traders might think — why bother with such a slow and long-term expert advisor? I would say that using it as your only active strategy is probably not that bright idea, but it can complement other strategies nicely. Since it is a long-term trending system, it can cooperate well with some counter-trade short-term robot, reducing the drawdown periods.

You can download the MT4 or MT5 version, or read more info about this Ichimoku expert advisor. Ichimoku Chikou Cross is also available for cTrader. Unfortunately, unlike MetaTrader versions, it does not support ATR position sizing due to the lack of proper symbol information functions.

If you have any questions or some interesting thoughts regarding the Ichimoku Chikou Cross expert advisor, please feel free to post them using the form below.

16 Responses to “Ichimoku Kinko Hyo Expert Advisor”

  1. Latif Shaikh

    Dear sir/madam,

    I want to know about ichimoku-chinkow cross EA that –
    1) Pairs 2) Timeframe 3) requirement of PC on/off 4) MM options details ( true/false) 5) Minimum equity requirement 6) if any pdf/doc file about all details sent to me on email id


    Latif Shaikh


    admin Reply:

    1) Any.
    2) Any.
    3) Of course your PC should be on for the EA to trade, unless you are using a VPS, of course.
    4) There is a lot of details on MM here:
    5) That does not depend on EA.
    6) No such file.


  2. Mihail

    Nice work!
    When I tried to start it with cTrader on building the EA id dropped me this line:
    “Error : Unable to load assembly: Algo file ‘C:\Users\Trader\Documents\cAlgo\Sources\Robots\../Indicators/Ichimoku Kinko Hyo.algo’ does not exist.”

    I killed more than enough hours trying to find where the cTrader default indicators are, so I could copy and rename them in the desired directory, but unfortunately no success so far..


    Andriy Moraru Reply:

    The indicators should be here:
    C:\Users\<Your UserName>\Documents\cAlgo\Sources\Indicators\

    You should also compile the required indicator before compiling the EA.


  3. Mihail

    Unfortunately, the path you gave, contains only the cAlgo Sample Indicators, but does not contain the core cTrader indicators like ichimoku… (And there is no sample ichimoku indicator)


    Andriy Moraru Reply:

    Latest version of cTrader has a built-in Ichimoku Kinko Hyo indicator. Please re-download the cBot – it should now use the built-in version.


  4. Mihail

    Thank you!


    Andriy Moraru Reply:

    You are welcome.


  5. Me

    I can’t seem to find a reference to the ATR in the cAlgo source code???


    Andriy Moraru Reply:

    cTrader version of the expert advisor does not support ATR position sizing because cAlgo does not support all the required symbol information function calls (like tick value for example).


  6. Me

    as I posted that I saw your statement above, even now is it not supported?
    If you can hit me up I have altered this algo with multi positions.. and WOW! I can send it over to see if you can improve on it…
    Once in profit by 3-20 another position is opened up to the max allowed…


    Andriy Moraru Reply:

    Interesting. However, please remember that pyramiding can be dangerous.


  7. Paul

    Another e.g
    2 weeks, 1K start, 0.01 lots

    Just wanted to say thanks, as I was looking to use the ichi cloud in an algo, wasnt sure where to start, then found this!


    Andriy Moraru Reply:

    H1 timeframe? I am not sure that it is a good idea to run it on H1. Did you try forward-testing it?


  8. Paul

    For e.g that is CADJPY with m2..

    No only backtesting as I only wrote the multi pos section today…
    It is an interesting graph though, very low DD…


  9. Paul

    even seem to get a drawup with AU..
    I know live testing throws new things into the ring.. but one of the most promising backtesting results I have seen


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