Multi-Basket Ichimoku Adaptive Trend

Family: trend_following · Regime: trending · Complexity: medium · Asset classes: FX (Major Pairs) · Timeframes: H1, H4

Thesis

Currencies trend when macro-economic flows create an imbalance across an entire currency basket. By requiring a pair-specific trend (Ichimoku) to align with a broad-market basket trend (Currency Strength) while exiting a volatility squeeze (BB), we isolate high-probability momentum legs. Using the adaptive MultiKAMA for exits allows the strategy to stay in efficient trends while tightening stops during volatility-decay phases.

Components

• Ichimoku Kinko Hyo (regime) — Establishes the macro-trend and structure; only taking trades in the direction of the cloud breakout.
• Currency Strength Template (direction) — Ensures the specific currency pair's move is backed by broad-market currency flow rather than isolated noise.
• Arrows Indicator Template (entry) — Provides the localized execution trigger when price action momentum aligns with the identified trend.
• MultiKAMA (TyphooN) (exit) — Adapts to efficiency ratio; used for trailing exits to capture trend legs while exiting quickly when efficiency drops.
• Daily High Low MTF (risk) — Uses previous day's extremes to define stop loss levels and calculate risk-of-ruin position sizing.
• Bollinger Bands (volatility_filter) — Restricts entry during low-volatility 'squeezes' where whipsaws are frequent, ensuring sufficient expansion for the trend.

Known failure conditions

• Extended periods of high-efficiency 'ping-pong' between previous day's High/Low without cloud breakouts.
• Currency strength divergence where the pair moves opposite to its aggregate basket strength.
• Compression of Daily High/Low range below the average spread cost.

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