Ichimoku Cloud EA Template for MetaTrader 5
The Ichimoku Cloud (Ichimoku Kinko Hyo) is a comprehensive trend-following system originally developed for Japanese stock markets. This free EA template enters when price breaks above or below the Ichimoku Cloud, using Tenkan-sen/Kijun-sen crossover for confirmation. It includes ATR-based risk management and works well across multiple trading sessions. Build it in AlgoStudio without coding, customize the parameters, and export a production-ready MQL5 Expert Advisor in minutes.
What Is an Ichimoku Cloud Strategy?
An Ichimoku Cloud strategy uses the Kumo (cloud) as a dynamic support and resistance zone. The cloud is formed by two lines \u2014 Senkou Span A and Senkou Span B \u2014 projected 26 periods into the future. When price is above the cloud, the trend is bullish. When price is below the cloud, the trend is bearish. A breakout through the cloud signals a potential trend change, and the thickness of the cloud at the breakout point indicates the strength of the support or resistance being broken.
This is a trend-following approach that provides more context than a simple moving average crossover. The cloud gives you support/resistance, trend direction, and trend strength all in one indicator. The Tenkan-sen (conversion line) and Kijun-sen (base line) crossover adds a momentum confirmation layer, similar to a fast/slow MA crossover but adapted to the Ichimoku framework.
The system was developed by Japanese journalist Goichi Hosoda over 30 years of research and published in 1968. It was originally designed for daily charts of Japanese equities but has proven effective across forex, commodities, and indices on multiple timeframes. Its multi-signal approach \u2014 combining cloud, crossover, and lagging confirmation \u2014 makes it one of the most complete single-indicator systems available.
How This EA Template Works
Unlike most templates that focus on the London session, the Ichimoku Cloud strategy works well across multiple sessions including the Asian session. This is because the indicator was designed for Japanese markets and its parameters naturally align with Asian and London session dynamics. The EA can trade during both sessions, providing more opportunities, especially on pairs like USDJPY.
The dual requirement of cloud breakout AND Tenkan/Kijun crossover creates a high-quality entry filter. Cloud breakouts alone can be false signals \u2014 price may briefly pierce the cloud and reverse. Requiring the TK crossover confirms that short-term momentum aligns with the breakout direction, significantly reducing false entries. The trade-off is a lower win rate (35\u201345%) compensated by larger winning trades.
Default Parameters
These defaults work well on trending pairs, especially USDJPY, on H4/D1. All parameters are exported as input variables so you can optimize them in the MT5 Strategy Tester.
| Parameter | Value | Type |
|---|---|---|
| Tenkan Period | 9 | Ichimoku |
| Kijun Period | 26 | Ichimoku |
| Senkou B Period | 52 | Ichimoku |
| Stop Loss | 1.5x ATR(14) | ATR-based |
| Take Profit | 2:1 R:R | Risk-reward |
| Session | London/Asian (multiple) | Timing |
| Max Trades/Day | 2 | Risk |
| Position Sizing | 1% risk per trade | Risk |
How to Build This EA Without Coding
1. Create a new project in AlgoStudio
Sign up for free (no credit card required) and click “New Project”. Name your project “Ichimoku Cloud Strategy” and open the visual builder canvas.
2. Add timing and indicator blocks
Drag a Trading Sessions block onto the canvas and select the London and Asian sessions. Add an Ichimoku Cloud block \u2014 set Tenkan to 9, Kijun to 26, and Senkou B to 52. The Ichimoku block provides the cloud boundaries, Tenkan-sen, and Kijun-sen values automatically. Connect the Ichimoku block to the timing block.
3. Add trade execution and risk management
Add Place Buy and Place Sell blocks. Connect a “Price above Cloud AND Tenkan crosses above Kijun” condition to the Buy block, and “Price below Cloud AND Tenkan crosses below Kijun” to the Sell block. Add Stop Loss (set to 1.5x ATR with period 14), Take Profit (set to 2:1 risk-reward ratio), position sizing (1% risk per trade), and Max Trades Per Day (2).
4. Export, backtest, and optimize
Click Export to generate a .mq5 file. Load it into MetaTrader 5 and backtest on USDJPY H4 with at least 3 years of historical data. The Ichimoku system generates fewer trades than faster indicators, so you need a longer backtest period for statistical reliability. Use the MT5 Strategy Tester optimizer to test Tenkan values from 7\u201312 and Kijun from 22\u201330. Demo trade for 1\u20133 months before going live.
Optimization Tips
Respect the original parameter ratios
Hosoda's original parameters (9, 26, 52) maintain a specific mathematical relationship: Kijun is roughly 3x Tenkan, and Senkou B is roughly 2x Kijun. When optimizing, try to maintain these ratios. For example, 7/22/44 or 10/30/60 preserve the proportional relationship. Breaking these ratios significantly can make the cloud behave unpredictably.
Use the cloud thickness as a confidence filter
A thin cloud is easier to break through and more likely to produce false breakouts. A thick cloud represents strong support or resistance, and a breakout through it is more significant. Consider adding a minimum cloud thickness filter \u2014 only take breakout signals when the cloud is at least a certain width in pips. This reduces false signals during transitional periods.
Consider higher timeframes for stronger signals
Ichimoku was designed for daily charts, and its signals become increasingly reliable on higher timeframes. If you are getting too many false breakouts on H4, try switching to daily charts. You will get fewer trades but each cloud breakout carries more weight. Many professional Ichimoku traders use D1 for signals and H4 for entry timing.