Ichimoku trend-follower

IchiV3 is a systematic long/short trend-following strategy running on Hyperliquid perpetual futures. It uses Ichimoku cloud analysis across multiple timeframes to identify trend changes and ride established trends in both directions.

Strategy description

The strategy goes long when the Ichimoku cloud signals a bullish trend flip, confirmed by momentum indicators. It goes short when bearish trends reassert themselves after failed price retests of key cloud levels. Positions are evaluated on a 1-hour timeframe with signals derived from 4-hour price structure.

Longs are exited when momentum reverses. Shorts are exited when selling pressure is exhausted.

Position sizes are tiered by market capitalisation — larger, more liquid assets receive bigger allocations while smaller coins get reduced exposure.

While the strategy trades both directions, the short side is the primary profit driver — generating roughly 3x the returns of the long side in backtesting. The strategy is particularly effective at identifying and riding extended bearish moves in crypto markets.

Risk management

• 1x leverage
• Up to 10 concurrent positions
• Dynamic stop losses based on market volatility (ATR)
• Trailing stops on short positions to lock in profits
• Market cap-weighted position sizing to limit exposure to volatile small caps
• Stop losses placed on exchange for execution safety

Trading universe

• Top 75 Hyperliquid perpetual futures by 7-day trading volume
• Minimum $100,000 volume threshold
• Universe refreshed daily

Backtesting results

Backtesting results (Hyperliquid, Sep 2024 – Feb 2026, ~17 months):

• Total return: 725% | CAGR: 328%
• Sharpe: 2.54 | Sortino: 4.95 | Calmar: 30.76
• Max drawdown: 10.7%
• 898 trades (215 long / 683 short), 33.3% win rate
• Profit factor: 1.60 | SQN: 3.39

Backtests are not indicative of future performance.