Se-fu Ichimoku Envelope Trend revised

Se-fu Ichimoku Envelope Trend revised

Postby Jonathan2FI » Sat Feb 01, 2014 11:00 am

Disclaimer: all Steve's warnings pertaining to EAs apply.


Updated 4/05/14
Hi, I have been working on an EA that trades on 4H that combines Ichimoku, everything from the last years of trading, learning from this forum and my interest in everything Japanese so I bring forward - Se-fu (safe) Ichimoku Trend and would like to get some input into it's further development.

Start with an understanding of Ichimoku which I will not cover as it has been covered many times before (ps don't fall into any traps to pay for this knowledge just spend the time researching) Plus a good understanding of EA's and limitations of back-testing is required. In the development of NB 10x I remember several comments related to the need to still manage with discretion - and this is the direction I see for this. I also wanted to use 4H so this principle of maintain a watching brief can still be applied, however, I also wanted the system backtested over 6 years with NP/ DD > +3 and DD<20% - to at least indicate if the mechanical system had legs.
Basic principles - Ichimoku defines support and resistance and most importantly identifies trend direction including gauges momentum.
So a complete system in one indicator. Yes - but one that lends itself to visual interpretation perhaps more than automation and an indicator that has hidden depth. As traders newbies developers - we have all gone through the process of jumping from one indicator to another to interpret a market phenomena plus adding complexity on to EAs and ending up with nothing. I decided to stick to this indicator as a development project for 6 months and not deviate.
To give an idea of the route I have taken when you look at Ichimoku you look at 3 chart positions in time past (26 bars back) current and future (26 bars projected forward) - now to be referred to as past current and future.

Confirming an Up Trend UT -
price is above the current cloud - it is above the current support and resistance levels
the future cloud is orientated for UT - it is a green cloud
Chinkou-span past (momentum) is above Kijun-sen past - the momentum part of this indicator is above price and Kinjun.

Confirming a Down Trend DT - price is below the current cloud, the future cloud is orientated for DT,, Chinkou-span past (momentum) is below Kijun-sen past

The basis of this system is multiple Ichimoku entry confirmations with added envelopes using 240LWMA all on 4H with partial exits on ADX retracements. I have used Support and Resistance levels defined by Ichimoku Kumo clouds plus envelopes based on the 240LWMA.

Health warning here - using any envelope type indicator and adjusting period and deviation to suit the pair can lead to curve fitting / over optimisation / delusions of grandeur and future shock when markets do not respond to your perfect boundaries. So beware. Forex is full of paradoxes.

UPDATE I further developed this EA with several entry triggers and exit trigger based on and old friend that I keep going back to for automated trading ADX

A test that I did that gives me a degree of confidence that this has legs is test the EA on multiple currencies EUsd, EAud, ENzd, GJpy all worked. EA that you cannot pick up and use on different currencies should be treated with suspicion that they may be elaborate curve fixing /optimised EAs. Anyway have a look

See picture - and notes

Clearly I would appreciate development advise, on entry, trade management, exits etc.. to reduce LONG TERM DD and improve net profit.
Jonathan

Note I coded using strategy quant EA wizard that is a simple front end for rapid manipulation of Empty4 mlq language no problem with development outside of this front end.

THIS IS A DEVELOPMENT PROJECT NOT FOR LIVE TRADING
I provide the set file as example again not for use.
I have gone back one iteration of EA (appears a bit strange but version 3 I cleaned up redundant variables and must have corrupted something - no changes in logic this one works


See post on Page 6 for another Ichimoku development using an H4 and D1 Ichimoku clouds to trade confirmed trends and H4 retracements to D1 support opportunities.
You do not have the required permissions to view the files attached to this post.
User avatar
Jonathan2FI
 
Posts: 119
Joined: Fri Jun 15, 2012 9:26 am
Location: Birmingham, Frankfurt, Brussels

Re: Se-fu Ichimoku Trend

Postby AGT » Sat Feb 01, 2014 12:23 pm

Ok - Ichimoku is always worth a try !

So move on Jonathan - slap it out mate ! :smile:
AGT's EA portfolio: viewtopic.php?f=36&t=1374
AGT
 
Posts: 845
Joined: Thu Nov 17, 2011 7:20 pm
Location: Germany

Re: Se-fu Ichimoku Trend

Postby zentauro67 » Sat Feb 01, 2014 9:17 pm

Go on! :good:

I´ll follow セーフ Ichimoku with great interest.

(What settings have you in mind for envelopes?)

ren_ichimoku_poster_by_onikage108-d70tb74.jpg
You do not have the required permissions to view the files attached to this post.
User avatar
zentauro67
 
Posts: 429
Joined: Fri Mar 01, 2013 4:41 pm
Location: Spain

Re: Se-fu Ichimoku Trend

Postby brinol » Sat Feb 08, 2014 3:54 am

I like ichimoku too and look forward to seeing where you take us .. :good:
User avatar
brinol
 
Posts: 177
Joined: Mon Apr 30, 2012 12:23 pm

Re: Se-fu Ichimoku Envelope Trend

Postby Jonathan2FI » Sun Feb 09, 2014 7:57 pm

Hi I have updated post 1
User avatar
Jonathan2FI
 
Posts: 119
Joined: Fri Jun 15, 2012 9:26 am
Location: Birmingham, Frankfurt, Brussels

Re: Se-fu Ichimoku Envelope Trend

Postby AGT » Sun Feb 09, 2014 8:11 pm

Fine ! Nice to see you again ! :good:

Any advices what to do best changing the parameters ? ;)
In which direction best to tweak the default bots settings ?
AGT's EA portfolio: viewtopic.php?f=36&t=1374
AGT
 
Posts: 845
Joined: Thu Nov 17, 2011 7:20 pm
Location: Germany

Re: Se-fu Ichimoku Envelope Trend

Postby zentauro67 » Sun Feb 09, 2014 8:44 pm

Thanks, Jonathan. :yahoo: I´ll start testing it tomorrow.
User avatar
zentauro67
 
Posts: 429
Joined: Fri Mar 01, 2013 4:41 pm
Location: Spain

Re: Se-fu Ichimoku Envelope Trend

Postby brinol » Sun Feb 09, 2014 9:49 pm

Jonathan2FI » Sun Feb 09, 2014 3:27 pm wrote:Hi I have updated post 1


Thanks Jonathan i will download and give it a blast this week. :)
User avatar
brinol
 
Posts: 177
Joined: Mon Apr 30, 2012 12:23 pm

Re: Se-fu Ichimoku Envelope Trend

Postby Jonathan2FI » Sun Feb 09, 2014 11:30 pm

Have a look at the fundamental trading logic first of all with the indicators on the screen - I have a sub routine in the code that lays down up and down arrows on the chart to indicate daily trend logic has been satisfied.
I can of course consider adding further trading variants however from experience of past like many on this forum more is not necessarily better.
If your happy with logic consider the entry exit and trade management aspects and comment on potential improvements.
By all means test across different pairs to see how robust the logic is.
Thanks Jonathan
User avatar
Jonathan2FI
 
Posts: 119
Joined: Fri Jun 15, 2012 9:26 am
Location: Birmingham, Frankfurt, Brussels

Re: Se-fu Ichimoku Envelope Trend

Postby brinol » Mon Feb 10, 2014 11:41 am

Anybody else unable to load the EA on the chart..if I recompile the EA I get an '=' - incompatible types Error.
User avatar
brinol
 
Posts: 177
Joined: Mon Apr 30, 2012 12:23 pm

Next

Return to Automated trading systems

Who is online

Users browsing this forum: Google [Bot] and 2 guests