Welcome to the world of trading! Today, we’re diving into the Ichimoku Kinko Hyo system, a robust tool for traders looking to enhance their strategies on MetaTrader 4. This system operates through an Expert Advisor (EA) that simplifies your trading decisions.
The magic happens when the Chikou Span crosses the price action. If it crosses upward, it signals a long position, while a downward cross suggests it’s time to go short. But don’t just jump in! For long trades, you need to ensure the price action is above the Kumo, the Chikou Span is also above the Kumo, and that the overall Kumo size in pips exceeds your specified threshold. For short trades, it’s the exact opposite.
When it comes to closing orders, you have a few options. You can implement a hard stop loss, which you set up as a percentage of your account balance (for example, 0.02 for a 2% risk). The order will also close if the price action moves against the Kijun-sen or if the Chikou Span crosses back over the price action. If you have money management (MM) enabled, the EA will utilize ATR-based position sizing to help you manage your risk effectively.
For the best results, focus on JPY pairs, particularly USDJPY. This system also shows great potential with Gold, but make sure to adjust the Kumo variable in the source code from *1000 to *100 for optimal performance.
As we gear up for December trading, here are the optimized settings for November: USDJPY H1, Kumo Threshold: 120, Failsafe: 0, Order Stop Loss Risk: 0.02, MM: true, ATR Multiplier: 2, Risk: 2.
Just remember, trading with the Ichimoku Kinko Hyo system can be powerful, but like any trading strategy, it’s essential to use it wisely. Take it with a grain of Ichi salt!
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