Historical Frequency Ichimoku Breakout Strategy

Family: trend_following · Regime: trending · Complexity: high · Asset classes: FX, Crypto, Indices · Timeframes: H4, D1

Thesis

Markets exhibit long-term 'color' persistence; if a market has historically produced more bullish candles, it has a structural long bias. By aligning this bias with Ichimoku multi-timeframe scoring and Heiken Ashi smoothing, we can exploit SilverTrend breakouts while using Darvas consolidation zones to define structural risk.

Components

• Candle Count History (regime) — Establishes global bias; trades are only taken in the direction of the historical dominant candle type (e.g., Long if BullCounter > BearCounter).
• Heiken Ashi (Standard MT5) (direction) — Provides the primary trend filter; requires HA candle color to match the trade direction to ensure smoothed momentum.
• SilverTrend Sv2 (entry) — Generates the specific entry trigger when price breaks the calculated dynamic Kmax level.
• Relative Strength Index (RSI) (exit) — Used to exit positions when momentum reaches exhaustion (Overbought 70 for Longs, Oversold 30 for Shorts).
• Darvas Boxes MetaTrader 5 (risk) — Defines the risk parameters; Stop Loss is placed at the opposite boundary of the most recent Darvas Box.
• MMT Ichi Workflow Overlay Profiles (confirmation) — Acts as a high-probability filter; trade signals from the entry indicator must be confirmed by a positive Ichimoku score (Score > 0 for Longs).

Known failure conditions

• Global candle count ratio reaches 50/50, indicating total loss of historical regime bias.
• Consecutive losses exceeding 5% of equity due to Darvas Box whipsaws in tight ranges.
• HTF Ichimoku scoring remains stagnant despite significant price movement.

Explore the full interactive blueprint, parameter ranges and evidence on WOBR StrategyVerse, or generate this strategy as an MT4/MT5 Expert Advisor with QuantMogul AI Engine.