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Attachments: Profitable Renko strategy that needs to be turned into an EA
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Profitable Renko strategy that needs to be turned into an EA

  • #21
  • Oct 24, 2020 3:18am Oct 24, 2020 3:18am
2nd brick has a 66.6% chance of being same colour. But only if you let it run with the mandatory 2 brick "sl". When you calculate your chances you will see its 50% minus cost. Same goes for decisions made based on your ma.
  • #22
  • Oct 24, 2020 3:28am Oct 24, 2020 3:28am
Quoting tommydoginti
{quote} Or I am wrong with concept of Renko
Yes
  • #23
  • Oct 24, 2020 3:35am Oct 24, 2020 3:35am
but based on my experience renko bars are repainting and useless during live trading . you can try that out and see yourself.
  • #24
  • Oct 24, 2020 3:42am Oct 24, 2020 3:42am
Quoting Anusragger
{quote} Yes
https://school.stockcharts.com/doku....analysis:renko

yea I think I am wrong with H/L renko, it is fine for now as not using this format yet
  • #25
  • Oct 24, 2020 3:51am Oct 24, 2020 3:51am
Quoting majid1357
but based on my experience renko bars are repainting and useless during live trading . you can try that out and see yourself.
Not true. You are a tithead.
  • #26
  • Oct 24, 2020 8:20am Oct 24, 2020 8:20am
These two do not repaint.
Attached File(s)
File Type: ex4 RenkoLiveChart_v4.13.ex4   28 KB | 766 downloads
File Type: ex4 MathTrader7_RenkoChartCreatorEA.ex4   73 KB | 720 downloads
  • #27
  • Oct 24, 2020 9:15am Oct 24, 2020 9:15am
Quoting JukeMasterIV
{quote} You really need to read previous posts. I clearly replied to the other gentleman that we’ll be using a traditional Renko 10 pip chart. Furthermore, I’ve not been or ever have used a Renko on MT4. I am very reliant on the TradingView for most of my trading analysis.

That reply was for FerruFX about renko "repainting problem" wasnt directed at you =)

and YES anyone using renko should be using a fixed pip size, anything that its "variable" like atr/timeframe or anything will make them unreliable
  • #28
  • Oct 24, 2020 9:37am Oct 24, 2020 9:37am
Quoting tommydoginti
{quote} Not sure about your no.2. To my understanding, Renko chart based on “close” must need a timeframe to rely on in order to obtain the “close price” info and draw a chart.
Not really, for example if you chose a 5 pip brick size they will paint ONLY when the price moves 5 pip in the same direction as the previous bar (or in this case 10 pips for an opposite bar), the "timeframe" doesnt matter in how the price moves =)

Quoting tommydoginti
{quote}If the chart is based on “High/Low” then it is tick data and independent of time. Of course it is also not difficult to program it, just H/L Renko is more choppy. The most “art” part would be where to draw the first Renko level, not 0.0000 for every one. Or I am wrong with concept of Renko
Thats exactly how it works!!: tick data.. it accumulates the ticks up/down, the prices moves whatever amount of pips (again up or down) and it paints the bricks based on the pip size you told the generator to use.

The main "problem" or characteristic of price only charts its that it paints/draws the info whenever it feels like it (lol): if the price just doesnt move or the move its smaller than the defined size then it look like it "stalled" or you got disconnected or something, thats why people wants to "fit" them to an atr or "timeframe" to resemble something they are used to: a new candle X amount of times (big mistake with price charts)

ATR change the brick size all the time in order to "fit" them to an arbitrary
  • #29
  • Oct 24, 2020 11:31am Oct 24, 2020 11:31am
Quoting FerruFx
{quote} Keep in mind that what you see back in history isn't what happened in real time ... Renko candles repaint. Just let your chart running 1 full day ... screenshot the chart ... then reload your renko builder and compare the new chart. The reloaded chart will look way more perfect! So if you built your strategy by looking at the history, you will be very disappointed trading it live.
FerruFx,

Your explanations are always welcome.

Tell me why renko repaint and it only happened on MT platforms?

I trade on a platform that Renko does not repaint, never repainted !!!

John
"No pain no gain"
  • #30
  • Oct 24, 2020 11:46am Oct 24, 2020 11:46am
Quoting havo
{quote} Not really, for example if you chose a 5 pip brick size they will paint ONLY when the price moves 5 pip in the same direction as the previous bar (or in this case 10 pips for an opposite bar), the "timeframe" doesnt matter in how the price moves =) {quote}
Thanks for the explanation and I think we are on same page on “close” Renko principle. So if merging the “close” Renko on standard candle chart, each “Renko Candle” has different length in time. The “timeframe” I referred to is the frequency of “close price” to be obtained to the Renko Chart to see if a Renko candle is still in play or close and form a new candle if price enters next Renko level

A fixed value (with anchored start price point, if applicable) Renko does not repaint because the expected price levels for all possible Renko candles are determined when size is determined.

back to the strategy, I am 50/50 on this being profitable. How to exit for such strategy is extremely difficult and determinative to the actual gain/loss.
  • #31
  • Oct 24, 2020 3:15pm Oct 24, 2020 3:15pm
Attached File(s)
File Type: ex4 Renko_Strat.ex4   9 KB | 742 downloads
  • #32
  • Oct 24, 2020 3:56pm Oct 24, 2020 3:56pm
If by repainting the offset of the starting value is meant, this may be a concern, but actually makes no difference for your strategy. Good luck.
  • #33
  • Oct 24, 2020 7:37pm Oct 24, 2020 7:37pm
  •  FerruFx
  • Joined May 2007 | Status: MT4/MT5 EAs/Indicators/Alerts coder | 6,542 Posts | Online Now
Quoting JBRolim
{quote} FerruFx, Your explanations are always welcome. Tell me why renko repaint and it only happened on MT platforms? I trade on a platform that Renko does not repaint, never repainted !!! John
Let's consider a single candle of 50 pips Bullish body and a renko chart of 5 pips brick ... When you first build your renko chart, the builder will set for this specific candle 10 bullish renko bricks (10 x 5 pips).

Let's now consider a live situation of a forming candle of 50 pips ... the price goes up 20 pips so renko plots 4 bullish bricks (4 x 5 pips) ... then price goes down 10 pips so renko plots 1 bearish brick (5 pips reverse + 1 brick) ... then finaly price goes up 40 pips so renko plots 7 bullish bricks (5 pips reverse + 7 bricks) ... ending the sequence of the 50 pips.

So in real time the renko gets 4 up + 1 down + 7 up ... but if you reload the builder, this 50 pips move will be seen as 10 ups (the down move was removed because MT4 doesn't see the historical move within a candle ... only the open>close move of 50 pips.

Not sure if my English explanation is understandable, but that's the MT4 logic. Other platforms with renko provided as standard charts may be handled differently.

Anyway what I explained here is easily viewable by yourself ... Just let your chart running 1 full day ... screenshot the chart ... then reload your renko builder and compare the new chart (same period). The reloaded chart will look way more perfect!

Please note that my point is on MT4 with any well known standard renko builder.
MT4/MT5 EAs/Indicators/Alerts coder
  • #34
  • Oct 24, 2020 8:49pm Oct 24, 2020 8:49pm
Quoting FerruFx
{quote} Let's consider a single candle of 50 pips Bullish body and a renko chart of 5 pips brick ... When you first build your renko chart, the builder will set for this specific candle 10 bullish renko bricks (10 x 5 pips). Let's now consider a live situation of a forming candle of 50 pips ... the price goes up 20 pips so renko plots 4 bullish bricks (4 x 5 pips) ... then price goes down 10 pips so renko plots 1 bearish brick (5 pips reverse + 1 brick) ... then finaly price goes up 40 pips so renko plots 7 bullish bricks (5 pips reverse + 7 bricks)...
Wow man.. if thats the MT4 logic (and btw i have NO idea how to even code a "hello world" program lol) then, again, i have NO idea how the generator im using was coded or if there is any kind of trick or anything behind doors xD

I use MT4 and i have never ever ever have any kind of repainting problems like you described and trust me, i did tried EVERYTHING and anything to make them "fail" just to see if they were truly stable before "gambling" with, yet another, crappy ass generator

interesting to say the least !!
  • #35
  • Oct 24, 2020 8:54pm Oct 24, 2020 8:54pm
Quoting tommydoginti
{quote} Thanks for the explanation and I think we are on same page on “close” Renko principle. So if merging the “close” Renko on standard candle chart, each “Renko Candle” has different length in time. The “timeframe” I referred to is the frequency of “close price” to be obtained to the Renko Chart to see if a Renko candle is still in play or close and form a new candle if price enters next Renko level A fixed value (with anchored start price point, if applicable)
AH ok.. now i get it; yea in theory sounds like a nice approach but in practice.. not a good idea, there is no consistency long term :S

Quoting tommydoginti
{quote}Renko does not repaint because the expected price levels for all possible Renko candles are determined when size is determined. back to the strategy, I am 50/50 on this being profitable. How to exit for such strategy is extremely difficult and determinative to the actual gain/loss.
The turning point its in reading the OLHC of the renko bricks (renko with wicks), find the unbalance and manage the trade after its running.. guaranteed to end up with a positive R:R and a high win rate at the same time
  • #36
  • Edited Oct 25, 2020 12:21am Oct 24, 2020 11:36pm | Edited Oct 25, 2020 12:21am
Quoting majid1357
but based on my experience renko bars are repainting and useless during live trading . you can try that out and see yourself.
I do not wish to sound rude but you do not know what you are talking about.......I have traded Renko full time for approximately 20 years and posted many.many live trades.....Check my history...I do not drive a Bentley but do O.K.
I wish you success with your trading, however I fear you will need to improve if you post remarks like you have done above.
R
Ronnie Renko
  • #37
  • Oct 26, 2020 4:52am Oct 26, 2020 4:52am
Quoting FerruFx
{quote} Let's consider a single candle of 50 pips Bullish body and a renko chart of 5 pips brick ... When you first build your renko chart, the builder will set for this specific candle 10 bullish renko bricks (10 x 5 pips). Let's now consider a live situation of a forming candle of 50 pips ... the price goes up 20 pips so renko plots 4 bullish bricks (4 x 5 pips) ... then price goes down 10 pips so renko plots 1 bearish brick (5 pips reverse + 1 brick) ... then finaly price goes up 40 pips so renko plots 7 bullish bricks (5 pips reverse + 7 bricks)...
So even a ea backtest on renko charts would be wrong then.
R:R "Percentage Focus"
  • #38
  • Oct 26, 2020 5:02am Oct 26, 2020 5:02am
  •  FerruFx
  • Joined May 2007 | Status: MT4/MT5 EAs/Indicators/Alerts coder | 6,542 Posts | Online Now
Quoting PrinceJ58
{quote} So even a ea backtest on renko charts would be wrong then.
To be frank, I don't know. Never used tester with renko ... Not sure if the tester uses pre-built history or chart builds in real-time during the test. The later would be the equivalent to real-time trading.
MT4/MT5 EAs/Indicators/Alerts coder
  • #39
  • Oct 26, 2020 10:18am Oct 26, 2020 10:18am
Quoting FerruFx
{quote} Let's consider a single candle of 50 pips Bullish body and a renko chart of 5 pips brick ... When you first build your renko chart, the builder will set for this specific candle 10 bullish renko bricks (10 x 5 pips). Let's now consider a live situation of a forming candle of 50 pips ... the price goes up 20 pips so renko plots 4 bullish bricks (4 x 5 pips) ... then price goes down 10 pips so renko plots 1 bearish brick (5 pips reverse + 1 brick) ... then finaly price goes up 40 pips so renko plots 7 bullish bricks (5 pips reverse + 7 bricks)...

Thank you again for your clear and objective explanation.

John
"No pain no gain"
  • #40
  • Oct 26, 2020 10:24am Oct 26, 2020 10:24am
  •  FerruFx
  • Joined May 2007 | Status: MT4/MT5 EAs/Indicators/Alerts coder | 6,542 Posts | Online Now
Quoting JBRolim
{quote} Thank you again for your clear and objective explanation. John
You're welcome!
MT4/MT5 EAs/Indicators/Alerts coder
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