This is part 2 of the Ichimoku Strategy creation and backtest – with part 1 having dealt with the calculation and creation of the individual Ichimoku elements (which can be found here), we now move onto creating the actual trading strategy logic and subsequent backtest.
The Ichimoku approach concerns itself with two major elements – firstly the signals and insights produced by the “cloud” structure, which is in trurn created by the interplay between the Senkou Span A and Senkou Span B (and sometimes its relation to the price), and secondly the interplay between the price, the Tenkan-sen and the Kijun-sen.
