ICHIMOKU indicators for day trading ES MINI | Traders Hideout


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ICHIMOKU indicators for day trading ES MINI

  #5 (permalink)

Leeds UK
 
Trading Experience: Intermediate
Platform: FXTrade
Broker/Data: Interactive Brokers, CapitalSpreads, Oanda
Favorite Futures: GBP/USD
 
Tymbeline's Avatar
 
Posts: 429 since Apr 2015
Thanks: 1,044 given, 552 received

I haven't backtested this rigorously, but I think it might be viable to take entries from a simple Ichimoku-based system, subject to using something else (whether indicator-based or not) as a more general directional bias.

I think you need to be careful with the settings: traditional Ichimoku settings are based on daily charts for stock trading from the 6-day-week days, and have very little to do with what many people are trying to use them to trade.

Suggested method:
Entries: in an uptrend, take long entries only, using settings like 4-12-24 on fast charts, entering long a tick above the high of the bar/candle that produces a Tenkan/Kijun crossover when the bar closes at least one ATR above the Kumo (regardless of the position of the crossover itself in relation to the Kumo). All vice-versa for short entries in a downtrend. (Don't use Chikou Span at all, for such purposes.)
Stop-loss: a tick or two below the most recently formed swing-low, adjust manually as the trade proceeds, but don't use an automated stop-loss based on a "number of ticks".
Target: according to taste (but a simple, time-based "close all trades after x bars" might not be terrible).

There's a well-known problem doing all of this with NinjaTrader, which I see from your profile is your preference, because many of the customised Ichimoku add-ons don't display correctly to the right of the price-bars/candles. Maybe there are some that do, as well. I don't know the solution to this issue.

The method described above is basically a systematised way of "buying the dips in an uptrend and selling the rallies in a downtrend".

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