Very efficient simplified Ichimoku system

Hi all,
I am glad to share a system that I have now been trading consistently for a few months and has been very efficient for me.

Market, timeframe
- Forex, H4

Indicators
- 21 period exponential moving average
- two elements from the Ichimoku system : cloud and Kijun Sen
- 7 period RSI
- Fractals

Long Entry
Go long when following conditions are met :
- Price above cloud
- Kijun and 21 EMA have a good upwards slope
- Find a new low in the uptrend by waiting for the RSI to dip back towards the 50 mark, then go long when it bounces back up again, indicating new momentum

Short entry is the reverse

Stop-loss
- Position stop loss at latest fractal

Money management
- initial risk : 1 to 1,5%
- trail stop as fractals appear
- never give back an inch of profit if you reach R3

I have been trading this system since Feb 2015 and have been profitable every month since. May performance : +10,45%

Safe trading, feel free to ask questions.

A couple of things should be added.

1. Before taking a trade, you need to make sure that the pair you are trading is displaying clear market condition, meaning a clean chart uncluttered by violent price swings.

2. Before you enter a trade, check that there is no significant piece of news on the docket for that pair (central bank announcement, rate decision, macro indicator release)

Thanks for your posts. I'm watching the thread with interest.

I also routinely trade (for one of my systems, but on faster charts than you're using) using some components of the Ichimoku together with a Western MA.

I've seen "kumo only" systems before, and "Tenkan Sen and Kijun Sen only" systems, but I think this is the first I've seen with the kumo and the Kijun together without the Tenkan Sen. Interesting.

I don't use Chikou Span at all: it doesn't tell me anything that a quick look at the chart doesn't tell me, really (and I think the moving average makes it redundant, too?).

Are you using standard Ichimoku settings?

Quote Originally Posted by lexys View Post
Thanks for your posts. I'm watching the thread with interest.

I also routinely trade (for one of my systems, but on faster charts than you're using) using some components of the Ichimoku together with a Western MA.

I've seen "kumo only" systems before, and "Tenkan Sen and Kijun Sen only" systems, but I think this is the first I've seen with the kumo and the Kijun together without the Tenkan Sen. Interesting.

I don't use Chikou Span at all: it doesn't tell me anything that a quick look at the chart doesn't tell me, really (and I think the moving average makes it redundant, too?).

Are you using standard Ichimoku settings?
Hi Lexys, yes I am using standard settings for the Ichimoku part. The RSI however is set to 7 periods.

Thanks for your answer, above.

Do you happen to have any back-testing evidence of whether this system trades just as profitably without the RSI component being included at all? (I ask because I strongly suspect that it might: there'll be more trades, of course, including both losing and winning trades, but the profit factor might be the same and the results therefore more beneficial, overall, simply through trading more frequently?).