Attachments: Renko system

Renko system

#1
First Post: Edited 11:20am Dec 1, 2009 11:09am | Edited 11:20am

johto
| Membership Revoked | Joined Oct 2007 | 241 Posts

Hey, here is a promising renkobar system i'm testing.
Opened a real account today for it. Yeah, i know its "kamikaze" account with that kind of money because no micro lots allowed on the broker.
Current floating account profits from todays trading "only" +80%

Don't mind the the orange Finnish text(the rules) in the picture.

http://img.skitch.com/20091201-m9gmh...ji.preview.jpg
Click for full size

Indicators:
Renko bar(20pip) (I'm using free NinjaTrader renko indicator for it)
EMA (7)
Stochastics
PSAR dot(0.09,0.2)

Rules:
====
Long:
Enter when a renko bar has penetrated the EMA to upside, and the renko bar has also the PSAR dot.
You can use Stochastic as a filter (valid signal only if stoch is hovering near 20% or 80%).

Short:
Reverse the Long rules.

Stop loss and Take profit:
No stop loss, but recommend to put stop at breakeven after about 40 pips(2x20pip renko bars) So dont let the winning trade to change loser.

Take profits taken when reversing position from Long -> Short and via versa.

#2
Dec 1, 2009 11:20am Dec 1, 2009 11:20am

Petar_Serbia
| Commercial User | Joined May 2009 | 5,751 Posts

Quoting johto

Disliked

Hey, here is a promising renkobar system i'm testing.
Opened a real account today for it. Yeah, i know its "kamikaze" account with that kind of money because no micro lots allowed on the broker.

Current floating account profits from todays trading "only" +80%...

Ignored

Hello good setup but you dont need open new thread on Discusion you have 3 thread about Renko include mine...

Good thing about your system is simplicity but show to us picture for example when is market raining ? also bad thing is SL wich is the most important rule on Forex world...
Also biger box size on Renko mean biger SL in Forex you must know Risk is most important part..

Cheers

"Buy on fear, sell on greed !!!

#3
Dec 2, 2009 4:22am Dec 2, 2009 4:22am

balouf
| Joined Jul 2007 | Status: Trader | 279 Posts

Quoting Petar_Serbia

Disliked

Hello good setup but you dont need open new thread on Discusion you have 3 thread about Renko include mine...

Good thing about your system is simplicity but show to us picture for example when is market raining ? also bad thing is SL wich is the most important rule on Forex world...
Also biger box size on Renko mean biger SL in Forex you must know Risk is most important part..

Cheers

Ignored

How is it possible to put a moving average on a renko indicator?

#4
Dec 2, 2009 6:06am Dec 2, 2009 6:06am

billbss
Joined Apr 2006 | Status: Trader | 4,301 Posts

This is the same thing as this system.

http://breakpointtrades.com/Camtasia...nkosystem.html

#5
Jan 27, 2010 7:44pm Jan 27, 2010 7:44pm

Zurathustra
| Joined Dec 2008 | Status: Overman | 134 Posts

Quoting billbss

Disliked

This is the same thing as this system.

http://breakpointtrades.com/Camtasia...nkosystem.html

Ignored

Yeah, its exactly the same.. however having watched that video of the guy explaining it, I have to say he's an idiot.

First he keeps talking about "Time Frames" while the nature of Renko Charts means time frames are NOT relevant.. so using it on "15 Minute, 60 Minute, or Daily Chart" as he describes in the video is just out there...

Then he talks about following the "rules" of the system, but if you look closely at his charts you will see that he FAILED to follow the rules of the system.

For instance he describes it as a Pure SAR system, where you only enter/exit trades on the crossing of the 80/20 Stoch in conjunction with the P-SAR and 7 EMA.. yet you'll see several trades when he reversed his position with no input at all from the Stoch cross.

Honestly, this system would be better served by removing MACD, which serves no purpose according to the rules.. Removing the Stoch, which once again seems to be there simply to have an extra indicator.. and adding a 1 EMA.

Change the rules to:
BUY:
1 EMA Cross above 7 EMA with P-SAR Support
SELL:
1 EMA Cross below 7 EMA with P-SAR Resistance

The P-SAR will keep you out of "Most" whipsaws and keep you in the trend, even if the 1 EMA Cross's over the 7 EMA for 1 or 2 bars.

Why a 1 EMA? Because trying to figure out if "Price" is above the 7 EMA when you have "Wicks" is very hard; otherwise I'd say just use price.

#6
Jan 27, 2010 9:20pm Jan 27, 2010 9:20pm

DGC
| Joined Dec 2006 | Status: Trader | 246 Posts

Quoting Zurathustra

Disliked

Change the rules to:
BUY:
1 EMA Cross above 7 EMA with P-SAR Support
SELL:
1 EMA Cross below 7 EMA with P-SAR Resistance

The P-SAR will keep you out of "Most" whipsaws and keep you in the trend, even if the 1 EMA Cross's over the 7 EMA for 1 or 2 bars.

Why a 1 EMA? Because trying to figure out if "Price" is above the 7 EMA when you have "Wicks" is very hard; otherwise I'd say just use price.

Ignored

Good points. I especially like the use of the PSAR to avoid whipsaws. Agree about the need to use EMAs (or other line chart) to see crosses more clearly. I'll try to write a strategy for this to do some testing.. Renko opens up a whole new world of price data analysis...

#7
Feb 15, 2010 9:08am Feb 15, 2010 9:08am

Quantum4x
| Joined Nov 2008 | Status: Trader | 133 Posts

Doesn't work.
You get chopped to death eventually.

#8
Feb 15, 2010 2:30pm Feb 15, 2010 2:30pm

errich fx
| Commercial User | Joined Mar 2009 | 778 Posts

Quoting Zurathustra

Disliked

Yeah, its exactly the same.. however having watched that video of the guy explaining it, I have to say he's an idiot.

First he keeps talking about "Time Frames" while the nature of Renko Charts means time frames are NOT relevant.. so using it on "15 Minute, 60 Minute, or Daily Chart" as he describes in the video is just out there...

Then he talks about following the "rules" of the system, but if you look closely at his charts you will see that he FAILED to follow the rules of the system....

Ignored

----------------
Corrective combination Patterns

#9
Sep 27, 2010 10:57pm Sep 27, 2010 10:57pm

tommbstone
Joined Dec 2009 | Status: Trader | 658 Posts

Anyone still using this simple idea?

#10
Nov 10, 2011 12:27am Nov 10, 2011 12:27am

vladv
| Joined Mar 2006 | Status: Mr. | 203 Posts

Please share the indicators & template for this system,johto!

#11
Dec 8, 2011 3:37am Dec 8, 2011 3:37am

brucewhain
| Joined Aug 2006 | Status: brucewhain | 226 Posts

I like this system very much. Am forced to use the script version of Renko Live Chart, probably because there is not enough history to use the ea or indicator written by the same people. All are available here: http://www.forexfactory.com/showthread.php?t=189584

If you have 5 places after the decimal point it is necessary to multiply the timeframe by 10. (Also, if the schizphrenic 10th-of-a-pip tic chart slows your trading platform down, hit "Hide All" after right clicking on Market Watch pairs and that will reduce the amount of tenth-of-a-pip info.)

Instead of 20 pip bars, am using ten (with the script on the one-minute chart set for 100) and this seems to work nice and give a little extra insight on price movement in my pound-yen-obsessed world. Sixths indicator is set for the default 50 look-back.

Attached Image (click to enlarge)