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Strategies / Trend / Reversal With Ichimoku Cloud Filter

Reversal With Ichimoku Cloud Filter

Buys when a reversal pattern on closing prices and an Ichimoku-based filter both point up, and sells short when both point down. Any open position is closed when the two signals disagree.

TrendLong & shortSwingUSD/JPYDaily
1.91Profit factor
3,041,360Net profit USD
30.80%Win rate
276Trades
-477,000Max drawdown
11,019Avg trade

Best run of 11. USD/JPY, Daily, spread 1, from run pf:2026-10-12-USDJPY-D.tsv:55.

Entry rules, long

  2. Ichimoku state is +1 when the close is above the average of the 9-bar and 26-bar midpoints from 26 bars earlier.
  3. The system buys one contract at market when both states are +1.

Entry rules, short

  2. Ichimoku state is -1 when the close is below the 52-bar midpoint from 26 bars earlier.
  3. The system sells short one contract at market when both states are -1.

Exit rules

  2. A short closes when the two states no longer both point down.
  3. There is no stop or target.

Test conditions

PeriodUp to 2026-10-12
InstrumentUSD/JPY, Daily
Spread1 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 tested2026-10-12

Every run

Markets and timeframes tested

MarketTimeframePFTradesWin %NetMax DD
USD/JPYBest runDaily1.91 27630.803,041,360 USD-477,000
USD/JPY30 minn/a 4,61925.57511,530 USD-229,020
USD/JPY10 minn/a 4,80423.92319,390 USD-212,260
USD/JPY15 minn/a 4,73424.46201,630 USD-183,810
EUR/USD2 minn/a 5,27519.66130,824 USD-113,128
Nikkei 225Dailyn/a 23830.2538,327 USD-20,770
Brent CrudeDailyn/a 14327.279,832 EUR-9,018
S&P 500Dailyn/a 31225.961,796 EUR-1,508
GoldDailyn/a 32226.091,777 EUR-868
Gold30 minn/a 4,78826.401,620 EUR-1,216
Gold1 hourn/a 2,82125.661,191 EUR-1,168

Charts

Results by run

Top 10 of 11 runs. The full list is in the table above.

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Reversal With Ichimoku Cloud Filter
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Trend
// Direction: Long & short
// Timeframe tested: Daily
// ==============================================================

DEFPARAM CumulateOrders = false

ONCE kfast = 0
ONCE posrev = 0
ONCE posich = 0

rngf = highest[14](high) - lowest[14](low)

42 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

IchimokuSMAStochastic
Read this firstKnown weaknesses2 points
  • Results include the spread only. Commissions and overnight financing are not included.
  • The code is published as it was backtested and has not been compiled again since.

Questions

About this strategy

Can I run Reversal With Ichimoku Cloud Filter 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 11 market and timeframe combinations. The best run was USD/JPY, Daily, with a profit factor of 1.91 over 276 trades.

How large was the drawdown?

The best run had a maximum drawdown of 477,000 USD at the tested position size, against a net result of 3,041,360 USD.

Does it trade long, short or both?

It trades both long and short.

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200-Period Average Downside Crossover

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Get the full rules, the complete code and the ProRealAlgos portfolio as a member.

The ProRealAlgos community gets the full rules, the complete code and the automated portfolio.

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