Custom strategy using Ichimoku + RSI + Mama-Fama-Kama
This is a test as it is my first ever idea published. It has no educational purpose.
Please note that I am colorblind ...
I am presenting you my screen with my trading setup and a custom strategy I am developing at the moment.
=> My goal is to present you my idea so I can have feedbacks.
I also would like to build an automated trading bot that would take the trades for me/us on all pairs at the same time and on multi TF -_- I NEED YOUR HELP for that!!
My system and method of reading the chart:
Ichimoku Kinko Hyo (expert course level)
RSI (advanced leveI - developed a custom EMA strategy)
For this strategy, I added the MAMA-FAMA-KAMA indicator to my RSI-EMA because it acts like a powerful filter IMO, and this is my method of getting signals out of it (see pics):
This is a single timeframe approach.
Signals are delivered according to the rules (see pics).
Kama is the relative straight line on the RSI that changes from orange to blue
Mama and Fama are making the RSI cloud
EMA14 is set on the close of the RSI
IKH without Kijun and Chikou for more clarity
MA200 can be added as an important S/R-Magnet line
Volume can be added when available and if needed (for example with a MA20)
For now, I am trading them manually with 2 main approach:
- On a single timeframe - manual entry and trade management following the rules set in the pics (this works on all time frames, I like H4/M15/*M1*)
- On a HTF/LTF approach with a scalping approach ( I like H4-M15 or H1-M5 or M15-M1 but I do not recommend it!)
This last approach allows me to know in advance the direction of the trade I am looking for, according to the HTF analysis (H4 for example) and then go to a corresponding* LTF (M15 for example) to scalp the high confluence signals.
=> this is a well known subject but in short I can say that the HTF also provides Support and Resistance zones to watch for AND if 2 major lines (SSB on H4 and MA200 on M15 for example) appear at the same level on both the HTF and LTF, you add an interesting confirmation to your trade idea.
Note that the yellowish trades are counted as loosing trade even if all rules were not matched to enter the trade - simply because I don't know how a bot would react if the cloud 26 period on the front has switched to the other color.
You can also note that we could have taken more trade manually but I want to stay with very simple rules for now.
To be continued ...
Please note that I am colorblind ...
I am presenting you my screen with my trading setup and a custom strategy I am developing at the moment.
=> My goal is to present you my idea so I can have feedbacks.
I also would like to build an automated trading bot that would take the trades for me/us on all pairs at the same time and on multi TF -_- I NEED YOUR HELP for that!!
My system and method of reading the chart:
Ichimoku Kinko Hyo (expert course level)
RSI (advanced leveI - developed a custom EMA strategy)
For this strategy, I added the MAMA-FAMA-KAMA indicator to my RSI-EMA because it acts like a powerful filter IMO, and this is my method of getting signals out of it (see pics):
This is a single timeframe approach.
Signals are delivered according to the rules (see pics).
Kama is the relative straight line on the RSI that changes from orange to blue
Mama and Fama are making the RSI cloud
EMA14 is set on the close of the RSI
IKH without Kijun and Chikou for more clarity
MA200 can be added as an important S/R-Magnet line
Volume can be added when available and if needed (for example with a MA20)
For now, I am trading them manually with 2 main approach:
- On a single timeframe - manual entry and trade management following the rules set in the pics (this works on all time frames, I like H4/M15/*M1*)
- On a HTF/LTF approach with a scalping approach ( I like H4-M15 or H1-M5 or M15-M1 but I do not recommend it!)
This last approach allows me to know in advance the direction of the trade I am looking for, according to the HTF analysis (H4 for example) and then go to a corresponding* LTF (M15 for example) to scalp the high confluence signals.
=> this is a well known subject but in short I can say that the HTF also provides Support and Resistance zones to watch for AND if 2 major lines (SSB on H4 and MA200 on M15 for example) appear at the same level on both the HTF and LTF, you add an interesting confirmation to your trade idea.
Note that the yellowish trades are counted as loosing trade even if all rules were not matched to enter the trade - simply because I don't know how a bot would react if the cloud 26 period on the front has switched to the other color.
You can also note that we could have taken more trade manually but I want to stay with very simple rules for now.
To be continued ...
Short entry rules:
- Close under Tenkan
- Close under IKH cloud + under SSB
- Close under Kama line (orange)
- RSI close under it's EMA14
- RSI close under Mama-Fama cloud (must be red or very thin)
Long entry rules:
- Close above Tenkan
- Close above IKH cloud + SSB
- Close above Kama line (blue)
- RSI close above it's EMA14
- RSI close above Mama-Fama cloud (must be blue or very thin)
I have also set the rules for:
- Entry
- Stop loss
- Take profit (I have questions regarding what is possible to do on this point - how much can we play with it)
Backtesting is well above 70% with entry rule + SL rule + a fixed TP but to have a definitive value, we will need to have answers to a few questions on how we can play with the TP.
I would love to hear some feedbacks. Do you see any issues/mistakes or possible good ideas?