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Ichimoku_v31: The Japanese Samurai V31

Nickname: Japanese Samurai V31
Profession: Quant world's "Japanese exchange student" β€” using 70-year-old Japanese technical indicators, already version 31
Timeframe: 1 hour (medium-term player)


1. What's This Strategy?​

Simply put, Ichimoku_v31 is:

  • A strategy using Ichimoku Cloud
  • A strategy using Heikin Ashi candles
  • A strategy that watches 4h big trend

Like a cautious buyer using Japanese indicators: "Did Heikin Ashi cross above cloud? Is 4h cloud green? Both good? BUY! Break below cloud? SELL!" πŸ‡―πŸ‡΅


2. Core Config: Basically "Follow the Trend"​

Profit-Taking Rules (ROI Table)​

Make 10% right after buying? β†’ RUN!
Hold 30 minutes and make 5%? β†’ RUN!
Hold 60 minutes and make 2%? β†’ RUN!

Translation: This strategy is classic "trend following thinking", 10% ROI is relatively high, expecting to capture large trends!

Stoploss Rules​

Hard stoploss: Cut at 10% loss
Trailing stop: Activates after 2% profit, runs if 1% pullback

Translation: Standard configuration, not wide not narrow!


3. Entry Conditions: Just 2 Conditions​

🎯 Heikin Ashi + Cloud Breakout​

Core Logic:

  1. 4h Heikin Ashi close crosses above cloud (senkou_a or senkou_b)
  2. Previous candle below cloud
  3. 4h cloud is green

In Plain English:

"4h Heikin Ashi already crossed above cloud (breakout), and cloud is green (uptrend) β€” if this isn't a buy, what is?"


4. Protection: Cloud Filtering + Trailing Stop​

This strategy's protection is simple but effective:

Protection TypeFunctionPlain English
Hard StoplossCut at 10% loss"If we're wrong, admit it. 10% is the line"
Trailing StopAutomatically follows price after profit"Activates after 2% profit, runs if 1% pullback"
Cloud FilteringOnly buy when 4h cloud is green"Don't buy if cloud not green, auto filters downtrends"

Roast: This strategy's cloud filtering is really useful, auto filters downtrends! 🀣


5. Exit Logic: Run When Break Below Cloud​

5.1 Technical Exit: Just 1 Condition​

Trigger:

(4h Heikin Ashi close < senkou_a) OR (4h Heikin Ashi close < senkou_b)

In Plain English:

"4h Heikin Ashi already broke below cloud (trend weakening) β€” if you don't run now, what are you waiting for?"


5.2 ROI Exit: 3-Level Profit Taking​

Profit      Hold Time    Trigger Exit
─────────────────────────────────────
10% Anytime Run when reached (big profit)
5% After 30min Run when reached (medium profit)
2% After 60min Run when reached (small profit)

In Plain English:

  • Make 10% right after buying? β†’ Heaven-sent gift, run!
  • Hold 1 hour and make 2%? β†’ Still need to run, time cost!

6. This Strategy's "Personality"​

βœ… Pros​

  1. Ichimoku Cloud: Cloud filters trends, classic and effective
  2. Heikin Ashi: Smooth candles reduce noise
  3. Multi-Timeframe: 4h confirms trend, reduces false signals
  4. Market Orders: Ensures quick execution
  5. Low Computation: Few indicators, 512MB RAM can run it
  6. Trailing Stop: Automatically follows price after profit

⚠️ Cons​

  1. No BTC correlation: Doesn't know when Bitcoin crashes
  2. 1h Timeframe: Signal frequency lower than 5m
  3. Fixed parameters: Ichimoku Cloud parameters fixed
  4. Market order slippage: Market orders may have slippage
  5. Cloud lag: Cloud calculation has lag

7. When to Use It?​

Market EnvironmentRecommended ActionReason
UptrendHighly recommendedCloud filtering + multi-timeframe, perfect match
Ranging MarketNot recommendedTrend strategy has many false signals in ranging
DowntrendAuto pauseCloud filtering blocks most trades
High VolatilityAdjust parametersMay need to adjust stoploss threshold
Low VolatilityAdjust ROILower ROI threshold for small moves
BTC CrashAuto pauseCloud filtering blocks entries

8. Summary: How's This Strategy?​

One-Line Review​

"An Ichimoku Cloud, Heikin Ashi, watches 4h trend Japanese Samurai V31"

Who Should Use It?​

  • βœ… Quant beginners (simple code, easy to understand)
  • βœ… People who like simple strategies
  • βœ… Low-config VPS users (512MB RAM can run it)
  • βœ… People wanting to learn Ichimoku Cloud

Who Should NOT Use It?​

  • ❌ People wanting to make money in ranging markets (trend strategy has many false signals)
  • ❌ People wanting to bottom-fish in downtrends (cloud filtering blocks)
  • ❌ People wanting complex strategies
  • ❌ High-frequency traders (1h signals less than 5m)

My Recommendations​

  1. Paper trade first: Run 2-4 weeks to see signal frequency
  2. Add filters: Can add BTC correlation filter yourself
  3. Watch BTC: Although strategy has cloud filtering, manually pause when Bitcoin crashes hard

9. What Markets Make Money?​

9.1 Core Logic: Ichimoku Cloud Faith​

Ichimoku_v31 is a Japanese Samurai, code about 80 lines, what's that concept? Equivalent to a long Weibo post πŸ“±

Its money-making philosophy:

"Heikin Ashi crosses above cloud then buy, breaks below cloud then sell, 4h cloud green more reassuring, make big money and run isn't great?"

  • Ichimoku Cloud Faith: Cloud filters trends, classic and effective
  • Heikin Ashi Faith: Smooth candles reduce noise
  • Multi-Timeframe Faith: 4h more reliable than 1h

9.2 Performance in Different Markets (Plain English Version)​

Market TypePerformance RatingPlain English Explanation
πŸ“ˆ Slow Bull/Ranging Up⭐⭐⭐⭐⭐Cloud filtering + multi-timeframe, perfect match
πŸ”„ Wide Rangingβ­β­β˜†β˜†β˜†Trend strategy has many false signals in ranging
πŸ“‰ Single-sided Crashβ­β­β­β˜†β˜†Cloud filtering blocks most trades, auto lies flat
⚑️ Extreme Sidewaysβ­β­β˜†β˜†β˜†Too little volatility, signals decrease

One-Line Summary: Makes money in uptrends, many false signals in ranging, auto lies flat in crash markets


10. Want to Run This Strategy? Check These Configs First​

10.1 Pair Configuration​

ConfigurationRecommended ValueRoast
Number of Pairs20-40Moderate signal frequency
Quote CurrencyUSDTDon't use BTC/ETH as quote currency
Max Open Trades3-6 ordersControl risk
Position ModeFixed positionRecommended fixed, control risk
Timeframe1hMandatory, can't change

10.2 Hardware Requirements (This Strategy is Friendly!)​

This strategy has low computation, very low VPS requirements:

Number of PairsMinimum RAMRecommended RAMExperience
20-40 pairs512MB1GBEasy run
40-80 pairs1GB2GBVery comfortable

Warning: 512MB RAM VPS can also run, this strategy is quite friendly! πŸ˜…

10.3 Cloud Filtering Advantages​

  • Trend Confirmation: 4h cloud more reliable than 1h
  • Reduces False Signals: Only trades when cloud is green
  • Auto Lies Flat: Auto stops trading when cloud is red

Roast: This cloud filtering is better than many paid strategies! 🀣

10.4 Backtest vs Live​

Strategy logic is simple, backtest and live differences are small, but note:

  • Cloud lag
  • Market order slippage

Recommended Process:

  1. Backtest first to see historical performance
  2. Paper trade (Dry-Run) for 2-4 weeks
  3. Observe if cloud filtering works properly
  4. Small capital live test for 1 month

Don't go all-in immediately, even simple strategies need breaking in!


11. Easter Egg: Strategy Author's "Little Thoughts"​

Look carefully at the code, you'll find some interesting things:

  1. Strategy name is Ichimoku_v31: Ichimoku + v31 (31st version)

    "This name is telling you, this is an Ichimoku Cloud strategy, already 31st version!"

  2. Heikin Ashi candles: Smooth price noise

    "This is realΒ·reduce noise, regular candles too messy!"

  3. Market orders: entry/exit/stoploss all market

    "This is realΒ·quick execution, don't wait for limit orders!"


12. Last But Not Least​

One-Line Review​

"Ichimoku Cloud + Heikin Ashi, Japanese Samurai V31 intermediate player"

Who Should Use It?​

  • βœ… Quant beginners (simple code, easy to understand)
  • βœ… People who like simple strategies
  • βœ… Low-config VPS users
  • βœ… People wanting to learn Ichimoku Cloud

Who Should NOT Use It?​

  • ❌ People wanting to make money in ranging markets
  • ❌ People wanting to bottom-fish in downtrends
  • ❌ People wanting complex strategies
  • ❌ High-frequency traders

Manual Trading Recommendations​

Manual traders can reference this strategy's Ichimoku Cloud approach:

  • Use Heikin Ashi to smooth price
  • Observe both 1h and 4h cloud simultaneously
  • Set standard stoploss (e.g., -10%)

13. ⚠️ Risk Reminder Again (Must Read This Section)​

Backtest is Beautiful, Live Trading Needs Caution​

Ichimoku_v31's historical backtest performance may be very excellent β€” but there's a trap:

Trend strategies often perform very well in backtests, because historical data always has trending periods, but this doesn't mean future will definitely trend.

Simply put: Backtest data looks good, maybe because it just "encountered" that trending period.

Hidden Risks of Trend Strategies​

In live trading, trend strategies may cause:

  • Ranging market losses: Trend strategy has many false signals in ranging markets
  • Cloud lag: Cloud calculation has lag
  • Market order slippage: Market orders may have slippage

My Recommendations (Real Talk)​

1. Test with minimum capital first (e.g., 100U)
2. Run live for at least 2-4 weeks, observe ranging market performance
3. Consider adding BTC correlation filter yourself
4. Note cloud lag

Remember: Trend strategies most fear ranging markets, surviving is most important!


Final Reminder: No matter how good the strategy, market won't say hi when teaching you a lesson. Light position test, surviving is most important! πŸ™