Hubert Senters here. A question of the day comes from Mike. Hello Hubert: A quick question. How reliable is the Ichimoku cloud indicator? In other words, how would you estimate the winning ratio percentage? (Especially important for trading options.) Thanks in advance, Mike. I would say it’s especially important for trading and everything knowing your percentages is very important. Now, a winning percentage or a high percentage in my opinion is not the most important thing. It’s actually the risk reward ratio so if I’m risking $1 in order to make $5 that means I only have to be right one time out of five. So that thing is 90 percent correct I’ll make a lot more money. If it’s only 50 percent correct I’ll make less money but I’ll still make money because my risk reward is right. I’m just going to pull up a power point from the presentation. And I did this research. I had it back tested probably a decade ago so 10 years ago. Use this stuff with grain of salt so it’s going to depend upon the volatility individual instrument that you trade. And I can’t guarantee you anything. I can’t guarantee you anything in life nor I can’t guarantee you anything in trading. But this what the back of testing results were back then. So S&P 500 results in the last five years when I had it tested so we’re talking 10-15 years ago. Stocks in the indexes it worked 430 out of 500 indexes. It had about a 86 percent hit rate and that would give you a 33 percent return. If you filtered out the non-trending results in other words if you just went with the trending trade instead of the counter trend trades it would have give you a 79 percent return. That’s in the S&P 500 and then on currency futures it was profitable on 29 currencies over the last 10 years. That’s when the study was done. You have to use a multiple timeframe analysis of a daily, hourly and 10 minute. Hopefully that helps. I can’t tell you exactly how accurate it is for the individual thing that you’re trading and talking about because you have to back test it and then also back testing is good for some cases. And it’s never going to predict the future so it’s going to tell you what it did in the past. Hopefully that helps you. Hubert.