Ezakimak's Trading Blog

Price has pulled back and hit my stop loss. Because I had moved it to lock in some profit, the trade has finished in the positive. Only a couple of pips, but this is better than no pips!

Nice thread Ezakimak,

Please do continue ... All the Best.

Can you please post your Nonlag indicator.

Thanks
Ganesh

You might remember last week I said that this is the time of year when I only demo trade as the market can be a bit weird. It is the time of year when I like to compare and test different strategies and ideas I have going around in my head. Last week I tested with a good amount of success a strategy that combines the Waverunner with a MACD. What I plan to do this week is compare this Waverunner strategy with the strategy I use on my live account, Naked Renko. Please refer to page one of this thread for a description of the Naked Renko strategy I developed.

Here is a pic of a demo trade I have just kicked off. There are two BBMACD dots of the same colour on the chart (marked by the red X), this is the trigger for Naked Renko. You will note that the signal has not appeared yet for Waverunner(dot colour change and histogram pulling inside the signal line). My plan here is to see if they both would have come out with the same result, or if one gives an earlier / better signal or if there is some way I can combine them to make an even better strategy.

Let's see how we go!

Hi,

Thanks for sharing your settings.
This weekend i was also using a waverunner with a setting of 20. It looks like it reacts a bit faster, but i'm not sure if its better.

I will try both settings and see which is better.

Good luck!

Well, I have just discovered something disconcerting. I set off that comparison trade last night no problem and took that screen shot in my previous post. Before going to bed I set a stop loss just above the previous resistance area and take profit about a renko block and a half from the entry.

This morning I have looked at the chart and saw that the trade finished with profit, but the chart looked different! Check it out below and compare it with the screen shot taken last night. Look at the area I have circled, it is quite different to the screenshot taken last night. A red renko block from last night has disappeared and a green block is in its place. Once a block forms it should never change colour again.

I wonder if there is a bug in the script? Has anyone else some across this with RenkoLiveChart_v3.2? In a year-ish of using this script I have never seen this happen.

This change has not affected this trade and I have been trading successfully with this script for around about a year without noticing any issues. Might have to keep my eye on this.

Let me know what you think.

I'm using a commercial renko script. My chart still looks like the one you posted this morning. It is indeed something too keep an eye on.

Hi msiamd,

Thanks for your comments mate, I have been using this script (which I found on the Trading Renko thread here on Forex Factory) for almost a year and have never had any issue with. I still trust it, but will keep the corner of my eye on it!

Thanks also for your comments on the Waverunner / NonLagDot indicator. The default setting is at 20 which is where I was initially using it. In fact the first lot of testing I did was solely the Waverunner set at 20 and I simply traded the colour changes of the dots. That method works okay, but you get faked out a bit so I sought out a way to try and filter things a bit more. That lead me to setting it at 30 which gave good signals on its own but again I would sometimes get faked out by going against the trend. That is when I added the MACD to see if it could filter things better and keep my in the right flow of the trend. This has worked well so far.

My goal is to have a screen that has as little as possible on it for live trading - that's why I love my Naked Renko strategy.

Check out the pic below to see how the Waverunner set at 20 and 30 can offer different trade signals when used with the MACD. Both ideas work, it all depends on what you are after from the trade and your trading style:

Thanks for checking out my trading blog, glad you enjoy my adventures!

You can find the Waverunner indicator in post #57, or click on the paperclip at the top right hand side of the thread, filter out the images and you will see it there. The Waverunner appears to be the same as the NonLagDot indicator.

All the best mate, let me know if you have any questions!

Hello again,

In response to your PM, all my pairs are on 150 pip renko blocks. Just remember though, that I use a 5 digit broker so that means if you have a 4 digit broker, the blocks need to be set at 15 pips.

Cheers!

Hi,

Just been playing around with the setting for the dots. I have now changed it to 25. I also added a ALF i found on this forum.
The ALF works as follow: buy when prev close is above ALF and sell if prev close is below ALF.
Together with the waverunner dots and the macd i will see if it is workable system.

I hope you don't mind adding this indicator, because i know you like the renkocharts as naked as possible. If it is not ok, just let me know.

Regards

My plan this week is to compare my live trading strategy (Naked Renko) with the system I have been testing (Waverunner) to see which might be the most profitable.

In the chart below I have marked all the possible trades using the Naked Renko. Yellow lines are where there would have been a winning trade. Red lines are the losers. I normally set a 300 pip stop loss, move it to break even + 1 once a new block forms and then move it manually from there.

You can see that the losers would have been managed by the stop loss, but the lengths of the winners far outweigh the losers.

The problem with this strategy is that the losers are fakeouts and they can catch you out. This is offset by the nice long winners you can get.

Have a look and see what you think. I will post up the same chart with the Waverunner entries for comparison shortly...

So here is the same chart as above, but with all the trades marked for the Waverunner strategy. You will see the difference immediately. There are far less trading opportunities, but they are almost all winners. Even the re-entry (marked by the yellow arrow) was a winner.

Trading less limits your exposure to the market, so that is good thing. If you are watching the 5 majors, then there would be more opportunities if you are someone who 'has' to be in the market.

Hmmmmmm......

Just looking at the Waverunner indicator in those two charts, you could just about trade it on its own with the colour change of the dots. The Waverunner is set at 30....

I opened this demo trade according to the Naked Renko rules (two dots of the same colour on the BBMACD, the dots at the bottom of the screen). Interesting to see that the entry for the Waverunner method (Colour change of Waverunner dots on the main screen and MACD histogram pulling inside the signal line) occurs one block later.

It appears to me that Naked Renko may give an earlier signal, but while the Waverunner signal comes later, it is a more sound confirmation of the trend change.

That trade is still going well....

The analysis trade I set off before has just closed with my trailing stop being hit. The trade was entered using the Naked Renko rules as these signals came up first. So, as an analysis, if both strategies had been tried:

Naked Renko: 200 pips profit
Waverunner: 10 pips profit

There was a potential 150 pips on offer with the Waverunner trade, but as per the rules, once a new renko block formed, stop loss was moved to break even plus 10 which would have been hit on the pull back.

Food for thought.

Will see if can do a few more like this before the week ends and the market dies until next year!

Hey bud! Happy new year! RJ P. here. Hope the break has been treating you well.

Finally revived my account here on FF. Haha. Nice stuff you've got here. I'm still in the process of tinkering around, but I'm very inefficient at it since I'm more used to my other charting software than MT4. One question (sorry if it's a bit dumb), how do you get the BBMACD dots to show up on the price chart and not as a separate chart?

RJ P.

Hey there RJ!

Awesome to see you post here mate! There is no such thing as a dumb question here my friend.

To get the BBMACD on your MT4 screen, first of all make sure that in your computer, you have the BBMACD saved in your MT4 indicators folder. For me, this is My Computer/Crive/Program Files/GoTrader/Experts/Indicators it will no doubt be similar on yours. Once you have confirmed that it is there, in MT4 click on the Navigator icon (it looks like a folder and a star) then expand the Custom Indicator list that comes up and you should see the BBMACD listed there. There are two ways to get it on the screen. You can either double click on it or right click on it and select Attach to Chart.

Let me know how you get on bro!

Well everyone, it is a new year and we have 12 solid months of trading fun ahead of us. The end of last year saw the continuation of me using my Naked Renko strategy along with some serious testing of some alternative strategies. I won't start live trading again for a couple of weeks, so here is what I plan to test until that time:

- Waverunner (The strategy I have been testing for a while)
- Connect the Dots (A pattern I discovered while staring at a chart over the break)
- Renko Scalper (A simple scalping method I figured out based on percentages)

All of these strategies are things I have figured out simply by looking for patterns and correlations on my charts using various indicators at a variety of settings. When I see a pattern, I look back and visually test what I think I have seen. Then I thrash it demo trading and then I let it near my live account. That was the method that lead to Naked Renko being used and these other three have potential too.

Right, let's get it on!

Yo dudes,

Here is a trade I have going at the moment. This is a re-entry for the Waverunner strategy. See how the renko has crossed above the Waverunner dots, but note that the dots did not change colour and the MACD histogram did not push above the signal line. This could be an indicator that price has failed in its attempt to change direction and the downtrend has resumed.

Let's see how we go!