Ichimoku TK Cross Trade

Entry Logic

• Exact Entry Trigger: Enter long when the Tenkan-Sen (Conversion Line) crosses above the Kijun-Sen (Base Line). Enter short when the Tenkan-Sen crosses below the Kijun-Sen.
• Confirmation: The cross should occur on the correct side of the Kumo (e.g., bullish cross above the cloud).
• Timeframe: 60-minute, Daily.
• Market Condition: Trending.

Exit Logic

• Profit Targets: Exit on the reverse TK cross.

Stop Loss Structure

• Hard Stop: Place stop below the Kijun-Sen for longs, or above for shorts.

Risk Management Framework

• Risk Per Trade: 1% of account capital.

Position Sizing Model

• Sizing Approach: Fixed fractional.

Trade Filtering

• Market Conditions to Avoid: When price is inside the Kumo.

Context Framework

• Trend Direction: Only take crosses that align with the overall Ichimoku picture (e.g., price above cloud).

Trade Management Rules

• Breakeven: Move stop to breakeven after a 1.5R move.

Time Rules

• Optimal Window: During active trending periods.

Setup Classification

• A+ Setup: A bullish TK cross above the Kumo, with the Chikou Span free.
• A Setup: A bullish TK cross below the Kumo (weaker signal).
• B Setup: A bullish TK cross inside the Kumo (weakest signal).

Market Selection Criteria

• Instruments: Forex pairs and indices.

Statistical Edge Metrics

• Win Rate: 45-55%.
• Profit Factor: 1.7.
• Expectancy: 0.35R.

Failure Conditions

• Strategy Fails: In ranging markets or when the cross occurs inside the Kumo.

Psychological Rules

• Discipline: Be selective and only take the highest probability signals (e.g., A+ setups).

Advanced Components

• Filters: Ensure the future Kumo is bullish (Senkou Span A above B) for long trades.

Location

• Strongest: As a continuation signal in a strong, established Ichimoku trend.