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Strategies / Trend / Ichimoku Cloud Risk Reward

Ichimoku Cloud Risk Reward

Takes long or short trades when the Ichimoku conversion and base lines align with the cloud and with prices from earlier bars. Each trade has a stop at the cloud edge 26 bars earlier and a target at 2 times that distance.

TrendLong & shortSwingDow Jones1 hour
n/aProfit factor
7,713Net profit EUR
36.76%Win rate
476Trades
-5,949Max drawdown
16.20Avg trade

Best run of 7. Dow Jones, 1 hour, spread 3, from run sweeps:2026-10-11-DOW30-1h-opt.tsv:45.

Entry rules, long

  2. Span A is above span B on the current bar.
  3. The open is above both spans calculated 26 bars earlier, and the close is above both spans calculated 52 bars earlier.
  4. A long is only taken if the last signal was not already a long.
  5. Signals are only checked after 110 bars.

Entry rules, short

  2. Span B is above span A on the current bar.
  3. The open is below both spans calculated 26 bars earlier, and the close is below both spans calculated 52 bars earlier.
  4. A short is only taken if the last signal was not already a short.

Exit rules

  2. A long is sold at market when the open is below the close from 27 bars earlier.
  3. A long is sold at market when the prior bar's high or low reaches its target or stop level.
  4. A short is bought back at market when the open is above the close from 27 bars earlier.
  5. A short is bought back at market when the prior bar's low or high reaches its target or stop level.

Test conditions

PeriodUp to 2026-10-11
InstrumentDow Jones, 1 hour
Spread3 points
Starting capital1,000,000
CostsSpread only. Commissions and overnight financing are not included.
BarsUp to 200,000 bars, fewer where the instrument has less history
Last tested2026-10-11

Every run

Markets and timeframes tested

MarketTimeframePFTradesWin %NetMax DD
Dow JonesBest run1 hourn/a 47636.767,713 EUR-5,949
Nikkei 225Dailyn/a 12445.9718,994 USD-17,605
US Crude OilDailyn/a 13641.189,793 EUR-2,548
Brent CrudeDailyn/a 7936.717,275 EUR-5,139
USD/JPYDailyn/a 12934.115,790 USD-4,730
Nasdaq 100Dailyn/a 10839.814,023 EUR-2,801
S&P 500Dailyn/a 16636.141,147 EUR-680

Charts

Results by run

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Ichimoku Cloud Risk Reward
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Trend
// Direction: Long & short
// Timeframe tested: 1 hour
// ==============================================================

DEFPARAM CumulateOrders = false

ONCE dir = 0
ONCE myProfit = 0
ONCE myLoss = 0

conv = (highest[9](high) + lowest[9](low)) / 2
base = (highest[26](high) + lowest[26](low)) / 2
leada = (conv + base) / 2
leadb = (highest[52](high) + lowest[52](low)) / 2

32 more lines: the entry and exit rules.

Setup

How to load it

  1. Copy the code with the copy button on the code block.
  2. In ProRealTime, open a chart of the instrument and timeframe you want to test, then open ProOrder > New trading system and choose "Create with programming".
  3. Paste the code, give the system a name and save it.
  4. Click "Backtest", set your own spread and position size, and run it before you consider trading it live.

Indicators used

Ichimoku
Read this firstKnown weaknesses2 points
  • No profit factor is available, because only sweep results exist for this strategy.
  • The maximum drawdown of 5,949 EUR is large next to the net profit of 7,713 EUR.

Questions

About this strategy

Can I run Ichimoku Cloud Risk Reward in ProOrder?

Yes. The code is ProBuilder and runs as an automated ProOrder system. Backtest it on your own account with your own spread and position size before trading it live.

Which markets was it tested on?

It was tested on 7 market and timeframe combinations. The best run by trade count was Dow Jones, 1 hour, with 476 trades.

How large was the drawdown?

The best run had a maximum drawdown of 5,949 EUR at the tested position size, against a net result of 7,713 EUR.

Does it trade long, short or both?

It trades both long and short.

Related

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See how ProRealAlgos combines strategies like this into one automated portfolio.

Copy trading on US indices is available to ProRealAlgos members as spots open.

Past backtest results do not guarantee future results. This is not financial advice. Curated and maintained by ProRealAlgos. ProRealTime™ is a trademark of ProRealTime SAS. prorealalgos.comStatsDocs