IKH-HA STRATEGY

This strategy is based on Ichimoku Kinko Hyo chart trading method, and combined with the ichi360 Monitor and Heiken Ashi candlestick chart method. Anyone not familiar with Ichimoku Kinko Hyo can visit http://www.kumotrader.com/ichimoku_wiki/index.php?title=Main_Page for a comprehensive introduction. The ichi360 Monitor can be downloaded at http://www.ichi360.com/?p=1594 free of charge. Other indicators listed below are part of the MT4 package. If you are not able to spend the whole day at the screen, and want to be able to set-and-forget, the IKH_HA Strategy provides a good solution PROVIDED you also employ the use of a trailing stop. Timeframe: 4 hour Currency Pair: Any pair Risk Factor: 2% of account balance Stop Loss: Use Kijun Sen +/- ATR/6 buffer for trailing stop INDICATORS: Ichimoku Kinko Hyo 9,26,52 Heiken Ashi Multi Timeframe Indicator - ichi360 Monitor (Download: ichi360_Monitor_V2.zip) ATR 14 MONEY MANAGEMENT: Lotsize is determined by money management with risk limited to no more than 2% of account balance per trade. This is achieved by (1) calculating 2% of the account balance, (2) calculating the dollar value between the current price and the Kijun Sen ATR/6 for a long position or Kijun Sen + ATR/6 for a short position, and (3) dividing 2% of the account balance by the dollar value in (2) above. The result is the number of lots that can be traded without exceeding the 2% risk factor if the stop-loss is hit. The ATR/6 component adds a buffer to the stop-loss to allow for noise. CURRENCY PAIR SHORT LISTING: Once each day, or every 4-hours if you prefer, check the ichi360 Monitor for each currency pair to select suitable currency pairs for short listing. This is a step that MUST be performed before a currency pair can be considered for trading, and helps eliminate bad trades. The ichi360 Monitor MUST be 80% positive (13 or more up arrows) or 80% negative (13 or more down arrows) for a currency pair to be added to the short list.

TRADE ENTRY LONG POSITION: Price candle MUST completely clear top of the Kumo and close above the Kumo; Tenkan Sen cross up above Kijun Sen; Chikou Span MUST be above the price curve and trending upwards; Senkou Span A cross up above Senkou Span B; and Heiken Ashi candle MUST be green. TRADE ENTRY SHORT POSITION: Price candle MUST completely clear bottom of the Kumo and close below the Kumo; Tenkan Sen cross down below Kijun Sen; Chikou Span MUST be below the price curve and trending downwards; Senkou Span A cross down below Senkou Span B; and Heiken Ashi candle MUST be red. EXIT STRATEGY: This is essentially a trend-trading strategy so whilst we want to cut losses short, we also want to allow profitable trades to run to their maximum potential. Exit is achieved in one of two ways: Trailing stop trigger, or Tenkan Sen / Kijun Sen cross in the opposite direction of the trade. The following screen shot shows all the criteria that must be met in order to enter a long position. It also shows the results of a previous short trade that resulted in a 416 pip gain.

Ichimoku Kinko Hyo can appear to be complex and intimidating to those not familiar with this highly reliable charting system, but in reality it is an incredibly easy method to master. Once you become familiar with this method you may wonder how you managed trade without. Q&A: 1) Submitted by User on August 19, 2011 - 11:25. How do u determine your SL and trailing stop value? Not only that, the ichi360 is not showing on my platform whenever i load it what do i need to do? Am using MT4 platform Ans: Submitted by User on August 19, 2011 - 17:25. I am not sure what you are doing wrong with the ichi360 Monitor. It should be as simple as downloading, saving to the MT4 indicators folder, and attaching to the chart. The stop and trailing stop is tagged to the Kijun Sen (blue line), plus or minus a buffer to absorb market noise. The buffer is equal to ATR/6. 2) Submitted by George F on August 19, 2011 - 18:50. Much ado about nothing. Ichi is okay , and it does work, but it is very strict on rules, misses a lot of good trades , and is very time consuming . Stick to the simple Slingshot , BUT make sure you use it with Binary Options only. A perfect match. George F .

Ans: Submitted by Insider on August 20, 2011 - 18:25. George F, Why do you like Binary options so much. Cant say I know much about that. Insider. 3) Submitted by User on August 23, 2011 - 15:05. I have Ichi360 monitor V2 and pasted it in the experts folder of MT4and restarted MT4 but still when I try to apply it for the chart it is not working any help is appreciated. Ans: Submitted by User on August 23, 2011 - 18:42. The ich360 monitor needs to be adjusted for your screen. I had the same problem and tweeked the placement found in the settings. @ George F. I would like to thank you for pointing out binary options to us. Didn't think I had a gambling problem while trading forex, but binary options led me to stockpair dot com ....now that is gambling. Lliterally horse racing for stocks. 4) Submitted by User on September 1, 2011 - 01:44. @George F, I have been trading with ICHI strategy for more than two years now and from my experience its best to trade all currency pairs offered by your broker, Trust me this has given me more than four trades a week consistently and also I use TF H4 considering this . I feel that it is reasonable. 5) Submitted by User on September 2, 2011 - 18:22. Cannot say that I agree with @George F as far as IKH being time consuming and missing a lot of trades. Last week (29/08/2011 - 02/09/2011) I completed 30 trades over 22 currency pairs. Gross profit $2,217 against $381 gross loss, or a 5.79 profit factor. Risk factor of 2% on account balance. Net weekly result of 91.5% on account balance...low risk, high return. I spent an average of 1-hour each day at my computer screen. Much ado about nothing? 6) Submitted by User on September 5, 2011 - 12:53. @ USER HOW DID U EXIT UR TRADES? Submitted by Sandro on September 8, 2011 - 15:24. Hy user, Do you also take the 4H Timeframe? In this case do you also take trades in the evening where the volatility is smaller? Sandro. Submitted by User on September 9, 2011 - 16:31.

I exit my trades when the Tenkan Sen crosses the Kijun Sen generally. Usually I trade the H4 timeframe, and because I am located in Australia I mostly trade during the Australian / Asian session. 7) Submitted by User on September 12, 2011 - 05:38. How was this past week and pls clarify what percent of ur account balance did u make? 8) Submitted by User on September 15, 2011 - 17:20. Other than a few longer-term trades, no significant trading activity past week to date, sorry! I do have some small open trades in Silver, Gold, EURAUD, EURCAD, EURJPY, EURUSD, USDCHF, and NZDUSD controlled by my Money Management EA, and these are up around 30% to date. Will update soon. 9) Submitted by User on September 18, 2011 - 11:43. can you tell me more about your method .... 10) Submitted by User on September 25, 2011 - 10:18. Can i trade the IKH-HA strategy with other TF such 5mins,15mins or 30mins? Submitted by User on October 2, 2011 - 08:59. I would not suggest you trade below 4 hrs because it becomes very inaccurate. 11) Submitted by User on October 12, 2011 - 04:21. Re display of ichi360. It wasnt displaying, then I discovered, because of the default position of the indicator. I have to maximise the chart window in order to see it. Hope this helps some people. Submitted by User on December 6, 2011 - 10:28. Is it possible to get the multi tf indicator in different timeframes? I would ideally like it to analyse 15min 30min 1 hr and 4 hr rather than the current 4 timeframes... thanks very much! 12) Submitted by Mongo on December 7, 2011 - 17:33. User, I like Ichi as well. Yes, you tend to NOT trade as much as you're now a more patient & disciplined trader than most...awaiting ONLY the very best setups. Traders today trade like it as a game, gamble and have poor RR management...most traders fail and their personal lives suck as a result. No wife, no kids, no dog, no fun (lol). Once you figure out cloud trading, you'll regain control, have far less screen time AND actually get your life back into balance. I can attest to the fact that Asian traders, predominantly the origin of Ichimoku Kinko Kyo, are patient, disciplined and typically very technical in trading. Additionally MANY, MANY Asian banks use Ichi exclusively as they know that ONLY the biggest waves provide the smoothest and tastiest rides to profit. Hang Ten bro ;) ~ Mongo.

13) Submitted by User on December 23, 2011 - 04:21. Can you help me please , do you meant ATR/6 is ATR with period 6 or it is ATR (14) / 6 (divided by 6) thanks! Submitted by User on March 13, 2012 - 03:00. just wondering how profitable everyone has found this to be? Submitted by User on March 27, 2012 - 08:05. just, opened some positions 'user', will update you soon Submitted by User on March 29, 2012 - 15:55. Hi Great one, Can you help me please , do you meant ATR/6 is ATR with period 6 or it is ATR (14) / 6 (divided by 6) thanks! Submitted by User on May 4, 2012 - 12:09. Do I need to use ichi360? How much would it affect the results if I were not to use it. Also, is there any other standard/mt4 indicators or anything I can do that would replace the ichi360 indicator? Submitted by User on March 23, 2013 - 06:25. To get the Ich360MonitorV2 to display nicely on MT4, do the following once you have pasted it into your Experts > Indicators Folder and restarted your MT4 platform. Maximise a chart. Insert Ich360monitor indicator with the following inputs: TextOffSetfromRight = 25 TextOffsetfromTop = 400 Job Done. If that is not sitting nicely on your chart, just play around with the Offset numbers.