I have been trading a simple Renko strategy for quiet some time now and it yields some very decent profits.
Now I want to automate this strategy into an EA so that we dont have to wait for Renko bars to paint for long hours.
The whole concept is about keeping the trading strategy simple yet Accurate & Profitable!
Ok guys so lets first see how to build a Renko chart.
How to Install renko EA:
1. Open 1Min Chart
2. Attach your Renko EA (i.e. Renko_Mod.mq4)
3. Settings for this EA are :
Click OK and DONE.
4. Open Offline Chart : File > Open Offline > Select EURUSD M2 (Double Click to Open this Chart)
5. Your Renko Chart is now Active.
What we are doing here is that we are getting the Renko_mod.mq4 EA to generate a renko chart in offline mode but updates on live basis.
Now on the current chart you can see renko bricks of 10 pips each.
Now add EMA 50 and EMA 21 indicators to your chart and we are done!
The Rules of the strategy are very simple!
Buy after the brick color changes from red to green and 2 consecutive green bricks have formed and closed.
Our entry will be at the i.e. open of the third green brick.
Sell after the brick color changes from green to red and 2 consecutive red bricks have formed and closed.
Our entry will be at the i.e. open of the third red brick.
As a filter we use 21EMA and 50EMA.
If the prices are above the EMAs we take only buy trades.
If the prices are below the EMAs we take only sell trades.
1.When a brick of the opposite color is formed.
2. Trail the trade as more number of bricks are formed until your trailing stop loss takes you out!.
There are 2 concepts -
1. Last significant hi or low.
2. Hi or low of the last green or red color brick -
i.e. for a buy trade we will use the low of the last red brick from where the price turned.
for a sell trade we will use the high of the last green brick from where the price turned.
Additionally, you can use a trailing Sl of 20-30 pips to safe guard your profits.
You can choose one that best suits your style of trading.
If you are using trailing stop loss don't keep target so that we can let our profits run during times of long trends.
Now you chart should look something like this!
Sell Setup Example :
Buy Setup Example :
I humbly request All the talented and senior programmers on this forum to help me code a EA based on this strategy.
Fellow Members please refer this thread to anyone and anywhere where you can find talented programmers.
As I want an EA that can trade out of the offline renko chart!
All constructive suggestions will be welcomed with open arms.
Also, if you like my strategy please dont forget to thank me!!!
No red color is showed on the bars. Why?
I might test this. I just hate that Renko is almost impossible to backtest properly. At least i havent found any good way.
Can you post template pls.
It makes everyone to be on the same page with you.
I am also interested in Renko charts, they look great when they are trending but how do you manage when it goes sideways? Thanks and regards
here a diagram for a "quick and dirty" EA. If you think, we can talk about it, here is the source. Made with ForexGenerator and "Copy and paste".
Have fun and let me know, how we can improve it.
i am curious as to how long have you been trading this strategy ?
and how many pips have you been able to generate a month approx ?
sure sounds quite logical and promising to me.
especially since you traded this manual for a while and must have some result data.
green pips to ya
1. if ((iMA(NULL, NULL,21,0,MODE_EMA,PRICE_CLOSE,current) > iMA(NULL, NULL,50,0,MODE_EMA,PRICE_CLOSE,current)) && (Ask > iMA(NULL, NULL,21,0,MODE_EMA,PRICE_CLOSE,current)))
This is looking for the ASK to be > than the Moving Average, where as this specificity could actually miss out on the beginning of trend trades.
2. if ((Close > Open) && (Close > Open) && (Close > Open))
A little wordy, because in dealing with Renko, all bricks being the same size, you can simply state, (Close>Close);
Though I am not exactly sure this would make much of a difference...might just me being all sensitive n shit.
Personally...If it were me working the code, I would prefer to look for the beginning of the trend on confirmation, so that on longs and exit if the price closed against the Moving average...
if ((iMA(NULL, NULL,21,0,MODE_EMA,PRICE_CLOSE,current) > iMA(NULL, NULL,50,0,MODE_EMA,PRICE_CLOSE,current))&& (Bid< iMA(NULL, NULL,21,0,MODE_EMA,PRICE_CLOSE,current)) && Close]<iMA&&Close>iMA).....
And work the closing on:
This would eliminate a lot of the chop and extend the range of the trend.
It will still suck hard as an EA, but would allow you to be a lot more selective in your trades and eliminate a lot of the DD in a sideways channel.
My dos centavos
My Mt4 Freeze after opening offline chart... Any idea what to do?
Dropping all of the charts that you don't use.
Renko is a huge resource hound, so is meta...the combination can tax the most serious system if there is too much going on at the same time.
Right click on market watch screen.
Delete historical charts of anything you are not watching
Remove the zillion indicators from any open charts and try again.
Ok, I'm out of the office until Monday, more then. On the fly, "((Close > Open ) && (Close > Open ) && (Close > Open ))" is necessary because bar number 2 can have another color and so your suggestion is not true, right?
I think the recognition of a trend is simple. It starts with 3 same colored bars and ends when a bar with a different color occurs.
Is there anybody out there who can help me, setting a tester within an offline chart?
Really, as it is already written, makes no difference...
I did state that it's just wordy...doesn't mean it isn't as effective if not the flat out same.
All at the same time, if you check the charts previously posted...
When FASTMA>SLOWMA, price still went below for confirmation, typical trend change and then bought back...
I still thing that for longs, and for a greater run cycle, if(FASTMA>SLOWMA&&Close<FASTMA&&Close>FASTMA)return (buy);, would be the way to go...
Close on if(Close>FASTMA&&Close<FASTMA);
Plus, it's your code...why the fuck would you listen to me anyways?
Do whatever you want or whatever the op wants...was just a suggestion.
Ok guy, have you had an off day? Go and buy a book on polite conversation! Hear from you next week
Here is the first version of the EA I just created. It has not been tested yet. I just started running it on a demo account on my VPS. Use this EA at your own risk.
Note: In order to enable trading on an offline chart, you have to uncheck the Offline chart option in the Common tab of the Renko chart properties (press F8 to bring up the properties window).
Edit: There is a bug in this version that may prevent the EA from opening SELL positions. I fixed the bug in Version 1.1 (see Post 45).
I will forward test it from today, thanks.
Bit of a delicate peach, aren'tcha?
Thing about it is, if you apply it to a long enough timeframe and with a small enough risk, you will most likely still find your reward.
3 soldiers trading is not a new market concept...this is only applying moving averages to the idea.
Now thats why we use the moving averages as filter.
It keeps u away from a lot of bad trades and the chop.
Also the key here is in the money management.
Because whenever you catch a strong trend it will pay you back for a few loosing trades you have had because of the chop (unfortunately if u get caught in one) many times over because the Risk : Reward ratio is very good with this strategy.
Ex: for any given trade the Max Risk is 3 times the size of the bricks
i.e. if you are using 10pips bricks then your risk will be max 30 pips + the spread on a trade.
Or If you are trading gold and are using $1 brick then the risk will be $3 per trade in gold.
Hint : When i trade manually i just see to it that there is a visible distance between the prices or bricks and the moving averages.
Please observe that when the price tends to move near the EMAs it is generally ranging.
Playing around with the strategy for a while will teach you that.
Also there are Renko based EA already on the forum and a way to back test them as well.
I will post more about it later.
But, I am sure our talented programmers on this forum will find a better way out of it.
I have tested it check the result attached . It takes buy only.
I am very glad that experienced programmers and traders like you have found a way on this thread!
And Having Magix & MathTrader7 on board for sure looks very promising!!!
I am busy with a few meetings today!
Will go test it and definitely get back to you!
Thank you MathTrader7!
I really appreciate your contribution on this thread!
I will test it and get back to you!
But how can you back test this strategy on 1m chart???
I think there is another way of back testing EAs which trade thru offline charts!
Guys is this back test valid?
Please share your valuable insights!
No offences Please!
Just a constructive criticism!
sorry for my poor language
I was looking at the same thing.
Lot size .1, and the few trades that show are taking 2ish pips, $2 profit.
Spread could be the killer of this idea on an M1.
To give my 2 cents to a forum which has taught me so much in my career as a trader spanning last 8 years!
I have put your EA on demo forward testing.
Looking forward to achieve great results!
© Forex Factory