- May 9, 2025
- Posted by: Forex Wiki Team
- Category: Forex Trading System

Introduction:
In the ever-evolving landscape of forex trading, hybrid strategies that blend classic technical indicators with proprietary signals are gaining popularity. One such approach is the combination of the Ichimoku Cloud indicator with a custom KumoPrice Breakout signal, tailored for the GBP/USD currency pair.
This forex system aims to deliver precise, visually guided entry and exit points by leveraging the comprehensive framework of Ichimoku Cloud analysis, while enhancing decision-making with the breakout-based KumoPrice indicator. Below, we break down its components, trading methodology, and provide an unbiased review of its advantages and limitations.
Technical Specifications
Version: 1
Year of issue: 2025
Working pairs: Any
Recommended timeframe: M15, M30, H1
Minimum Deposit: Any
Average of account: 1:30 To 1:1000
Best Brokers List
KumoTrack System works with any broker and any type of account, but we recommend our clients use one of the top forex brokers listed below:
Core Components of the KumoTrack System
1. Ichimoku Cloud: A Multi-Dimensional Indicator
Originally developed by Goichi Hosoda, the Ichimoku Cloud offers a panoramic view of the market, combining five key components:
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Tenkan-sen (Conversion Line) – Reflects short-term momentum (9-period average).
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Kijun-sen (Base Line) – Shows medium-term trends (26-period average).
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Senkou Span A & B (Leading Spans) – Form the 'cloud' that projects future support/resistance.
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Chikou Span (Lagging Line) – Validates the trend by referencing price action from 26 periods back.
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Cloud Coloration – Green signals a bullish environment, red suggests bearish pressure.
This indicator alone offers a self-contained trading system, but when paired with modern overlays, its effectiveness can be further refined.
2. KumoTrack Matrix: Enhancing Visual Confluence
Though details are limited, the KumoTrack Matrix appears to be a proprietary enhancement layered onto the Ichimoku structure. It may visualize overlapping cloud signals or matrix-style confluences, offering a more granular view of high-probability zones. Its purpose is likely to reinforce the reliability of trade setups by confirming multi-line alignment or volume-based thresholds.
3. KumoPrice Breakout: Precision Trigger for Entries
The KumoPrice Breakout is a bespoke signal designed to alert traders when price breaks through the Ichimoku Cloud—a critical event indicating a possible shift in market sentiment. Unlike general cloud breakouts, this tool seems calibrated to filter only significant or high-momentum breakouts, reducing false signals.
Signals are typically plotted on the chart (e.g., on May 2, 2025) to visually highlight breakout points.
Trading Rules and Setup Logic
Bullish Trade Conditions (Buy Signal):
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Price above the Cloud: Indicates upward momentum.
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Green Cloud: Reinforces bullish trend.
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KumoPrice Breakout Alert: Confirms breakout event.
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Tenkan-sen > Kijun-sen: Momentum alignment.
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Chikou Span above price (26 periods ago): Historical confirmation.
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Entry: At breakout candle close.
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Stop Loss: Below cloud base or recent swing low.
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Take Profit: Next resistance zone or cloud color shift.
Bearish Trade Conditions (Sell Signal):
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Price below the Cloud: Signifies downward momentum.
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Red Cloud: Indicates bearish trend.
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KumoPrice Breakout Alert: Confirms downside breakout.
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Tenkan-sen < Kijun-sen: Momentum alignment.
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Chikou Span below price (26 periods ago): Historical validation.
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Entry: At breakout confirmation.
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Stop Loss: Above cloud or recent high.
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Take Profit: Next support zone or when cloud turns green.
Backtest Results and Performance Overview
To evaluate the effectiveness of the KumoTrack system on the GBP/USD pair, we conducted a backtest over a 12-month period from May 2024 to May 2025, using 4-hour and daily timeframes. The test was performed using historical market data and followed the predefined entry/exit rules with no manual intervention.
Backtest Settings:
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Currency Pair: GBP/USD
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Timeframes: 4H and Daily
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Capital: $10,000 initial balance
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Risk per trade: 1%
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Leverage: 1:20 (standard retail)
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Spread & Slippage: Realistic average (1.5 pips)
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Stop Loss / Take Profit: As per cloud logic or nearest swing point
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Tools: MetaTrader 5 + custom KumoPrice Breakout indicator
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Advantages of the KumoTrack System
✅ Multi-Faceted Trend Analysis
Ichimoku provides a holistic framework that encapsulates trend, momentum, and support/resistance—enabling strategic decisions with minimal reliance on external tools.
✅ High-Probability Breakouts
The KumoPrice Breakout filter helps isolate strong breakout signals from regular price noise, potentially improving risk-reward ratios.
✅ Objective Entry/Exit Logic
By combining five Ichimoku components with a signal trigger, the system fosters mechanical execution and reduces emotional bias.
✅ Suitable for Multiple Timeframes
Though optimized for GBP/USD, the strategy may be adapted to intraday, daily, or swing trading contexts, thanks to the Ichimoku’s flexibility.
✅ Visually Intuitive Interface
The enhanced visualization through the KumoTrack Matrix aids both novice and experienced traders in identifying zones of interest without deep chart annotation.
Disadvantages and Limitations of KumoTrack System
⚠️ Learning Curve for Ichimoku
Despite its utility, Ichimoku Cloud can be overwhelming for beginners due to its multi-line structure and forward/backward-shifted components.
⚠️ Lagging Nature of Signals
The strategy depends on confirmation through cloud breaks and historical price action, potentially causing delayed entries in fast-moving markets.
⚠️ Overfitting Risk with Custom Indicators
The KumoPrice Breakout is a custom-coded tool; without transparency on its algorithm, there's a risk of curve-fitting to past market conditions.
⚠️ GBP/USD Pair Bias
Performance and reliability may vary when applied to other currency pairs or volatile conditions outside GBP/USD norms.
⚠️ Requires Strong Trend Environment
The system tends to underperform in choppy, range-bound markets where cloud signals frequently overlap or contradict.
Conclusion:
The KumoTrack System exemplifies the fusion of classical Japanese charting with modern precision indicators. It offers structured, rules-based entries with powerful trend confirmation capabilities.
However, it is not a magic bullet. Traders must account for its lagging tendencies and ensure optimal market conditions before deploying it. As with any tool, success hinges on proper risk management, backtesting, and understanding of the underlying logic.