Ichimoku
This EA trades based on the Ichimoku Kinko Hyo indicator system, using the interaction of the Tenkan-sen, Kijun-sen, Senkou Span A, and Senkou Span B to identify trend direction and generate entry signals. It enters long positions when price is above the cloud and the Tenkan-sen crosses above the Kijun-sen, and enters short positions under the opposite conditions. The EA manages positions with configurable stop loss and take profit levels derived from the Ichimoku components.
Open the interactive view (equity curve, symbol switch)Key facts
Backtest results (H1, about 1 year)
| Symbol | P&L | Annual | Max DD | Trades | Win rate | Sharpe | Recovery | Losing streak | Per trade | Status |
|---|---|---|---|---|---|---|---|---|---|---|
| EURUSD | +0.79% | +0.68% | 5.06% | 79 | 48.10% | 0.24 | 0.16 | 8 | +$1.00 | Reliable |
| GBPUSD | -5.41% | -4.72% | 7.00% | 74 | 43.20% | -1.14 | -0.77 | 6 | −$7.32 | Reliable |
| USDJPY | -6.87% | -6.00% | 8.28% | 74 | 48.60% | -1.68 | -0.83 | 7 | −$9.28 | Reliable |
| XAUUSD | +110.37% | +84.87% | 20.22% | 66 | 60.60% | 1.87 | 5.46 | 4 | +$167.23 | Reliable |
Profitable on 2 of 4 markets with reliable results.
Converted from MQL5 to Python and run with the same rules for every EA. Positions use MT5 lot sizes (100,000 units per FX lot, 100 oz per gold lot) with 1:100 leverage, one order at a time, and a stop-out below 10% of the starting balance. Sharpe is computed from the equity curve. Results marked as unreliable are shown for completeness only.
Against the other Trend Following EAs with a reliable result on the same market: EURUSD: better than 66% of 95 · GBPUSD: better than 14% of 95 · USDJPY: better than 8% of 95 · XAUUSD: better than 89% of 96
Month by month
| Market | Months with a gain | Best month | Worst month |
|---|---|---|---|
| EURUSD | 46% | +2.66% 2026-02 | -1.17% 2026-06 |
| GBPUSD | 46% | +1.33% 2026-02 | -2.20% 2026-01 |
| USDJPY | 23% | +1.53% 2026-09 | -2.36% 2026-01 |
| XAUUSD | 62% | +41.05% 2026-01 | -8.90% 2026-02 |
From the backtest equity curve, sampled about every two days; only reliable results.
Blow-up risk: No blow-up pattern found
None of the usual blow-up patterns were found in the code, and the account was not stopped out in our backtests. That is not a guarantee: any EA can lose money.
High: stopped out in our backtest, or martingale/grid sizing without a stop loss. Elevated: martingale or grid sizing with a stop loss, or several positions at once without a stop loss. What the label means and what we found →
Strategy analysis
The core strategy of this EA is based on the Ichimoku Kinko Hyo system, a classic Japanese technical analysis framework. Entry conditions require price to be above the Kumo (cloud) with the Tenkan-sen crossing above the Kijun-sen for long positions, and price below the cloud with the Tenkan-sen crossing below the Kijun-sen for short positions. The cloud's color and thickness serve as additional confirmations for trend strength and support/resistance levels. Exit conditions include stop loss placement typically on the opposite side of the cloud and take profit based on risk-reward ratios or Chikou Span confirmation. Position sizing uses a fixed lot approach or percentage-of-balance method with user-configurable trade volume. Money management provides configurable stop loss distances and maximum position limits, but lacks dynamic position sizing mechanisms such as ATR-based stops or volatility-adjusted lot calculations.
Strengths
- Ichimoku is a well-established trend following system providing trend direction, support/resistance, and momentum simultaneously
- The Kumo cloud acts as a dynamic support/resistance zone, offering better market adaptability than fixed stops
- Multi-dimensional confirmation (price position + line crossover + cloud color) reduces false signals
- Standardized parameters (9/26/52) are time-tested in markets, reducing overfitting risk
- Clear and transparent strategy logic that is easy to understand and debug
Weaknesses
- Performs poorly in ranging markets as frequent cloud color changes generate numerous false signals leading to consecutive losses
- Lacks dynamic stop loss mechanisms (e.g., ATR-based stops), making fixed-pip stops ineffective across varying volatility environments
- Missing new bar check mechanism, potentially opening multiple positions on the same candle
- No spread filter, meaning entry costs may be excessive in high-spread environments
- Money management is simplistic without volatility-based dynamic position sizing
Possible improvements
- Add ADX or volatility filter to pause trading during ranging markets and avoid false signals
- Implement ATR-based dynamic stop loss and position sizing to improve adaptability across different market conditions
- Add new bar check and spread filter to prevent duplicate entries and high-cost entries
Risk assessment
Overall risk: Medium
- Missing new bar check may cause duplicate position openings on the same candle leading to overexposure
- Fixed stop loss may be too tight or too loose across varying volatility, causing unnecessary losses or excessive risk exposure
- Frequent false signals in ranging markets may lead to accumulated small losses becoming significant drawdowns
Evaluation scores
Parameters
| Parameter | Default | Description |
|---|---|---|
InpTenkan | 9 | Tenkan-sen (conversion line) period |
InpKijun | 26 | Kijun-sen (base line) period |
InpSenkou | 52 | Senkou Span B period |
InpLotSize | 0.1 | Trading lot size |
InpStopLoss | 0 | Stop loss in points |
InpTakeProfit | 0 | Take profit in points |
InpMagicNumber | 20148 | EA magic number for distinguishing orders |
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Backtests are historical simulations and do not guarantee future results. Not financial advice.