Hello all,

I have been thinking of a strategy that involves the use of Renko bars. Maybe a lot of you will not like the concept but I see potential in it and I would really appreciate some thoughts and advise.

The main principal is based on the fact that a trend is more likely to continue than to reverse.

So we have a renko chart like this one:

http://screencast.com/t/OWNlNGY1NW

The idea is as follows - we can enter a trade each time a new bar opens in the position it opens. In the long run we will have more lots on the side of the trend and make profit.

There are some issues of course. One is that if for instance we go long 3 times (lets assume 1 bar is 10 pips) and then a green brick is drawn and we enter short, then the price goes up again, the short position will be opened 20 pips below the last long position, which is not in our favor.

Another thing is that there is spread to pay.

As a possible work around I have thought of two possible solutions. They are both related to the lot size.

1. We can increase the lot size with one additional unit each time a position is entered. For example we have 4 long positions and they will be 0.1, 0.2, 0.3, 0.4. If a short position is to be opened it will be with only 0.1 lots. If the price goes up again, the count starts from 0.1 again.

2. We can open all long and all short positions in a sequence like this:

- we go long 4 times - 1,2,3,4 lots, then we need to go short twice, so the lots will be 1,2. Then the price goes up again and we can continue the previous sequence starting from 5 lots.

I would really appreciate your feedback as well as whether it is worth writing an EA to back and forward test this, as using a simulator is very hard and more important inaccurate.

Thank you!

I have been thinking of a strategy that involves the use of Renko bars. Maybe a lot of you will not like the concept but I see potential in it and I would really appreciate some thoughts and advise.

The main principal is based on the fact that a trend is more likely to continue than to reverse.

So we have a renko chart like this one:

http://screencast.com/t/OWNlNGY1NW

The idea is as follows - we can enter a trade each time a new bar opens in the position it opens. In the long run we will have more lots on the side of the trend and make profit.

There are some issues of course. One is that if for instance we go long 3 times (lets assume 1 bar is 10 pips) and then a green brick is drawn and we enter short, then the price goes up again, the short position will be opened 20 pips below the last long position, which is not in our favor.

Another thing is that there is spread to pay.

As a possible work around I have thought of two possible solutions. They are both related to the lot size.

1. We can increase the lot size with one additional unit each time a position is entered. For example we have 4 long positions and they will be 0.1, 0.2, 0.3, 0.4. If a short position is to be opened it will be with only 0.1 lots. If the price goes up again, the count starts from 0.1 again.

2. We can open all long and all short positions in a sequence like this:

- we go long 4 times - 1,2,3,4 lots, then we need to go short twice, so the lots will be 1,2. Then the price goes up again and we can continue the previous sequence starting from 5 lots.

I would really appreciate your feedback as well as whether it is worth writing an EA to back and forward test this, as using a simulator is very hard and more important inaccurate.

Thank you!