How to backtest Renko? | Forex Factory

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How to backtest Renko?

  • #1
  • First Post: Nov 1, 2009 4:40am Nov 1, 2009 4:40am
Renko Block Charts known for the simplicity and a good trend following noise filtered chart.

Renko also give us flexibility for displaying it on MT4, because it available in 3 versions, as a script, as an indicator, as an EA and it is up to you to choose which version do you like.

But the big problem, we can't backtest it.

Very appreciate if anyone know how to backtest Renko and share with us.

Thank you in advance.
  • #2
  • Edited 2:40pm Nov 2, 2009 2:39pm | Edited 2:40pm
Quoting wieb
Renko Block Charts known for the simplicity and a good trend following noise filtered chart.

Renko also give us flexibility for displaying it on MT4, because it available in 3 versions, as a script, as an indicator, as an EA...
I haven't actually tried this (I think forward testing is best) but it looks like it should work. If you try it please post your experience...

1. go to the crogram FilesMetatraderhistory folder. You should see subfolders with
trading servers feeds.

2. make a new subfolder with the name RENKO (or a name of your choice).

3. go to one of your trading servers folders (folder should be in historyxxxx_server) and copy the following files into history/RENKO folder:

- symbols.raw
- symbols.sel
- symgroups.raw
- ticks.raw
- 1 min data, e.g. EURUSD1.hst, GBPUSD1.hst, USDCHF1.hst, etc.

4. start Metatrader and manually log in into account but write RENKO in the server field (of course there will be no connection).

5. restart Metatrader to clean its preloaded data (you should see "Waiting for update" on all charts except 1 min).

6. drop Renko script on 1 min chart but now select a standard TimeFrame to generate, for example "5" for M5 timeframe.

7. Now you can backtest using M5 as the timeframe.
Old Benjamin was right
  • #3
  • Nov 6, 2009 1:12am Nov 6, 2009 1:12am
Quoting Lou G
I haven't actually tried this (I think forward testing is best) but it looks like it should work. If you try it please post your experience......
This is copied from my FAQ document about using off-line chart. Why you just don't give the link or simply attach the whole document here? There are more hints there.
Attached File(s)
File Type: pdf Off-line charts FAQ.pdf   71 KB | 11,601 downloads
  • #4
  • Nov 6, 2009 10:14am Nov 6, 2009 10:14am
Quoting aktur
Why you just don't give the link or simply attach the whole document here? There are more hints there.
Simply answering the question that was asked...
Old Benjamin was right
  • #5
  • Nov 7, 2009 2:25am Nov 7, 2009 2:25am
Quoting Lou G
Simply answering the question that was asked...
Yes, but you've answered using my words...
  • #6
  • Edited 8:14am Nov 7, 2009 7:48am | Edited 8:14am
Quoting aktur
Yes, but you've answered using my words...
I quoted from information I found on a forum. I humbly apologize if they were "your words".

I would think that you are experienced enough to realize that anything and everything posted to forums will eventually be shared all over the Internet. I've even run across a decompiled version of your Renko script (no, I did not decompile or post it, nor would I use it).

People who post here share their knowledge and experience constantly and even quote what others have said - that's part of what forums are for.

Once again, please accept my apology for quoting something you said. If I encounter any information in the future that is obviously attributable to you I will refrain from sharing it.
Old Benjamin was right
  • #7
  • Nov 14, 2009 7:25pm Nov 14, 2009 7:25pm
Thank you Lou G and Aktur for the replied.

I am also apologize "Aktur words" quoted here without your name as the source.

Hope this wouldn't happen again in the future and let's focus that we are all here to share knowledge and experience ("Lou G words").




I have been tried the back test steps above and successfully done to step 5.

On step 6, I drop RenkoLiveChart_v1.6.mq4 script to M1 chart.

The script run smoothly and write "Open Offline M2 to View Chart" on left corner.



But I am stuck and confuse on step 7 which said "you can backtest using M5 as the timeframe"

How can I do backtest using M5 as the timeframe?



I tried open strategy tester and run LFH Simulator 3 on M5, it open new M5 chart which said "Waiting for Update".

Tried to run other EA on M5 strategy tester, the new open M5 strategy tester chart still said "Waiting for Update".



Tried to change the time frame of M1 chart (which has RenkoLiveChart_v1.6.mq4 script on it) to M5 time frame, it said "Do you really want to stop script RenkoLiveChart_v1.6.mq4?"

If I click "Yes", it change to M5 chart then "Waiting for Update" on M5 chart.

If I click "No", it back again to M1 chart and nothing happen.


Any advice?
Attached File(s)
File Type: mq4 RenkoLiveChart_v1.6.mq4   9 KB | 1,961 downloads
File Type: ex4 RenkoLiveChart_v1.6.ex4   7 KB | 1,415 downloads
  • #8
  • Nov 15, 2009 2:29am Nov 15, 2009 2:29am
Quoting wieb
On step 6, I drop RenkoLiveChart_v1.6.mq4 script to M1 chart.

The script run smoothly and write "Open Offline M2 to View Chart" on left corner.
After step 6 you should rather see "Open Offline M5 to View Chart", when executed properly. However, it count for my Renko script, I don't know if the same is true for the free script.
  • #9
  • Nov 15, 2009 7:38am Nov 15, 2009 7:38am
Quoting aktur

However, it count for my Renko script, I don't know if the same is true for the free script.
I think the same as you are, the problem is on the RenkoLiveChart_v1.6 script which not code for backtest purpose.

Renko backtest is depend on the right script for creating Renko bricks on backtest chart.

How can I have your Renko script?

If your Renko script is free, do you please tell me where to download it?

But if your Renko script is a commercial, do you please tell me how much it cost (hope not expensive...) and where I could buy it?

Thank you.
  • #10
  • Nov 16, 2009 2:49am Nov 16, 2009 2:49am
Quoting wieb
I think the same as you are, the problem is on the RenkoLiveChart_v1.6 script which not code for backtest purpose.

Renko backtest is depend on the right script for creating Renko bricks on backtest chart.

How can I have your Renko script?

If your Renko script is free, do you please tell me where to download it?

But if your Renko script is a commercial, do you please tell me how much it cost (hope not expensive...) and where I could buy it?

Thank you.
My script is commercial as I'm putting much time to support it. It costs currently 60 EUR (used to be 30 EUR, but support is taking more time now). For link, please PM me as it is prohibited for most people to give commercial links on forex factory (you can use also Google 'Renko MT4 Michal' to spot it).
Regards,
  • #11
  • Nov 16, 2009 7:10am Nov 16, 2009 7:10am
Quoting aktur

you can use also Google 'Renko MT4 Michal' to spot it

I have found your site with Google.

One more thing I want to know before make a purchase, can I use your Renko script with LFH Trading Simulator 3.0 EA on strategy tester?

Honestly, I open this thread because I want do Renko manual backtesting on LFH Trading Simulator but don't know how to do it.

For me, LFH Trading Simulator is a great tool for reviewing PA and indicators behavior especially when the market closed.

That is why I have to make sure that your Renko script can run smoothly with with LFH Trading Simulator 3.0 on strategy tester.

Please advice.
  • #12
  • Nov 17, 2009 3:58am Nov 17, 2009 3:58am
Quoting wieb
I have found your site with Google.

One more thing I want to know before make a purchase, can I use your Renko script with LFH Trading Simulator 3.0 EA on strategy tester?

Honestly, I open this thread because I want do Renko manual backtesting on LFH Trading Simulator but don't know how to do it.

For me, LFH Trading Simulator is a great tool for reviewing PA and indicators behavior especially when the market closed.

That is why I have to make sure that your Renko script can run smoothly with with LFH Trading Simulator 3.0 on strategy tester.

Please...
Yes, I've just tested it with the LFH trading simulator and it runs smoothly. Note however, that when you generate Renkos:
1. Use standard time frame, e.g. 5min
2. Enable wicks display to cover the whole price range movements.
  • #13
  • Nov 27, 2009 4:14pm Nov 27, 2009 4:14pm
I started backtesting, but it is useless when you cannot simulate the wicks, as with version 1.6 of the script.

Question about backtesting with wicks:
Is it possible only with the commercial script?
  • #14
  • Nov 28, 2009 3:35am Nov 28, 2009 3:35am
Quoting kiasom
I started backtesting, but it is useless when you cannot simulate the wicks, as with version 1.6 of the script.

Question about backtesting with wicks:
Is it possible only with the commercial script?
I don't know if any free Renko script can do wicks.

But I have been buy the commercial script and it works perfectly for backtesting.

If you use Renko, I suggest to buy the commercial script.

The price is a little high but worth it.


Question for Aktur :

Do you know how to reproduce Renko backtesting with 90% Modelling Quality?

I tried to set Max Bars in History and Max Bars in Charts to 2147483647 but the Modelling Quality still N/A and the Mismatched Charts Errors can't have 0 value

Please advice.

Thank you.
Attached Image
  • #15
  • Nov 28, 2009 4:14am Nov 28, 2009 4:14am
Quoting kiasom

Question about backtesting with wicks:
Here is the image of the commercial script on offline backtesting
Attached Image (click to enlarge)
Click to Enlarge Name: 28-11-2009 17-10-12x.jpg Size: 63 KB
  • #16
  • Nov 29, 2009 7:15am Nov 29, 2009 7:15am
Thanks, wieb.
I looked at the code of RenkoLiveChart 3.2, and decided to try to implement the wicks also in the script version 1.6.
It seems to work all right.
I put version nr 1.7 for the new variant with wicks.
Attached File(s)
File Type: mq4 RenkoLiveChart_v1.7.mq4   10 KB | 2,229 downloads
  • #17
  • Nov 29, 2009 9:42am Nov 29, 2009 9:42am
Quoting wieb
Question for Aktur :

Do you know how to reproduce Renko backtesting with 90% Modelling Quality?

I tried to set Max Bars in History and Max Bars in Charts to 2147483647 but the Modelling Quality still N/A and the Mismatched Charts Errors can't have 0 value

Please advice.

Thank you.
The mismatches which are given are from volume exhaustion. I don't know what is an algorithm that metatrder backtester uses for showing these mismatches. Therefore I don't know now how to force metatrader to show beter modelling quality. However, when I think about it I would not worry about this at all. The reason is that form definition all renko bars are made from 1 min bars and backtesting goes down always to 1 min. There are no other time frames involved in this. Therefore when you neglect the volume mismatches you can assume that the modeling quality is 90%, as all ticks are done from 1 min, which is after all the thing that the number is showing.
  • #18
  • Dec 1, 2009 8:20am Dec 1, 2009 8:20am
Quoting aktur
The mismatches which are given are from volume exhaustion. I don't know what is an algorithm that metatrder backtester uses for showing these mismatches. Therefore I don't know now how to force metatrader to show beter modelling quality. However, when I think about it I would not worry about this at all. The reason is that form definition all renko bars are made from 1 min bars and backtesting goes down always to 1 min. There are no other time frames involved in this. Therefore when you neglect the volume mismatches you can assume that the modeling...

I try everything to decrease Mismatched Charts Errors but its still has errors.

The mismatches is not only on volume, high and low value also unmatched.

Maybe because of it, the backtest has "too good to be true" result.

I think, maybe the forward test is the only way to test Renko EA.

Please advice Aktur.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: Result-2.jpg Size: 189 KB
Click to Enlarge Name: Result.png Size: 38 KB
  • #19
  • Dec 2, 2009 2:23am Dec 2, 2009 2:23am
Quoting wieb
I try everything to decrease Mismatched Charts Errors but its still has errors.

The mismatches is not only on volume, high and low value also unmatched.

Maybe because of it, the backtest has "too good to be true" result.

I think, maybe the forward test is the only way to test Renko EA.

Please advice Aktur.
Forward test is always way to go even when backtest has 90% modeling quality. And then, after forward testing on demo I would advise to forward test it on real mini account. This again give probably different results than demo forward testing.
  • #20
  • Dec 4, 2009 10:18pm Dec 4, 2009 10:18pm
Aktur ...

Please take a look on attach image, do you know why strange Renko bar appear?

It use the commercial script to make 5 and 10 pip Renko bar
Attached Image(s) (click to enlarge)
Click to Enlarge Name: strange bar 5 pips.jpg Size: 68 KB
Click to Enlarge Name: strange bar 10 pips.jpg Size: 74 KB
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