Does the Ichimoku Cloud and RSI combination even work? Will this strategy have a higher win rate than the Ichimoku Cloud got on its own? Well, why don’t we find out after we take 100 Trades with the RSI Ichimoku Cloud Trading Strategy that we saw in the previous video?

Since the whole point of the Ichimoku Cloud was to identify the strong trends, we are expecting the profit in the Trading Rush App, to go in the upward direction, and it did. Not because Ichimoku Cloud was showing the good trends quite accurately, but because RSI gave more signals in a short period of time in that good trend. That’s not a bad thing. After all, many traders add to position when the good trend continues.

The RSI Ichimoku Cloud combination was pretty interesting. Since RSI gives a lot of signals in a row, one might expect, the cloud of the Ichimoku Cloud, to filter a lot of false RSI signals when the price starts to go in the sideways direction at the end of the trend. But in reality, the RSI doesn’t give a lot of signals in the sideways market. It still gave false signals in the slow-moving markets, and those signals were filtered by the Ichimoku Cloud. But compared to the number of good signals the RSI gives in the trending market, the number of false signals in the slow market is way lower. In other words, more profit in the trending market, and less loss in the slow market.

But, in the Forex and Stock Market, the trend always comes to an end. You see, when you take a trade in the direction of the trend, you will only make money if the price continues to move in the direction of the trend. If you take a trade, and the price starts to move in the sideways direction, your profit target will not get hit, and if the price starts to reverse, you are definitely going to make a loss. Since RSI gave multiple signals in a short time when the Ichimoku was showing a trend, many trades were lost when the price simply stopped moving further in the direction of the trend. In other words, more trades were lost near the end of the trend than in the slow-moving market that follows afterward.

However, the RSI Ichimoku Cloud Trading Strategy gave more good signals in the long run. And in the Trading Rush App, it got a win rate of approximately 49 percent, which is a bit lower than what the Ichimoku Cloud Trading Strategy got on its own. 49 percent is still a profitable win rate because of the 1.5 to 1 reward risk ratio.

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And the Ichimoku Cloud RSI Trading Strategy gets a TR score of 26.3 out of 50, and ranks 21st from the top, below the RSI Supertrend Strategy, and above the CMO Trading Strategy.