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Renko Block Charts

  • #621
  • Oct 15, 2010 12:24pm Oct 15, 2010 12:24pm
Quoting forexzak
I have a question, appreciate if someone can help

While trading on Renko Chart, is Wick helpful to indicators to react or Wick is just a Visual tool for a Trader to see price movements.

forgive me for my ignorance, I thought to see expert comments.
Enabling wicks is up to you but they have no impact on the functioning of RLC_3.2 (which is the version you should be using).

The maximum size of a wick is 2 times the block size minus 1 (i.e. the wick for a block size of 10 is 19) - more than that will cause a new block to form in the opposite direction.
Old Benjamin was right
  • #622
  • Oct 15, 2010 1:10pm Oct 15, 2010 1:10pm
Quoting Lou G
Enabling wicks is up to you but they have no impact on the functioning of RLC_3.2 (which is the version you should be using).

The maximum size of a wick is 2 times the block size minus 1 (i.e. the wick for a block size of 10 is 19) - more than that will cause a new block to form in the opposite direction.
Thanks Lou
  • #623
  • Oct 19, 2010 4:48am Oct 19, 2010 4:48am
Hey guys,
It's good to see people using renko charts to trade, but I would like to know if there are any EA's out there that are developed to trade renko charts automatically?e.g. buy on blue bar that appears after a red and sell on a red bar that appears after a blue?I myself have experienced good success trading using renko charts solely, but I definitely welcome anything that helps to improve it
  • #624
  • Oct 19, 2010 6:05am Oct 19, 2010 6:05am
Quoting Maveri4k
Hey guys,
It's good to see people using renko charts to trade, but I would like to know if there are any EA's out there that are developed to trade renko charts automatically?e.g. buy on blue bar that appears after a red and sell on a red bar that appears after a blue?I myself have experienced good success trading using renko charts solely, but I definitely welcome anything that helps to improve it
Share you success here on FF and hopefully someone can write an EA for your strategy.
  • #625
  • Oct 19, 2010 8:26am Oct 19, 2010 8:26am
My strat is really very simple, Sell at red, buy at blue. Stop loss is always 2 blocks worth of pips (my blocks are 75pips each as I am a long term trader, that means SL is 150 everytime u enter a trade).When you get stopped out, it 100% means that the trend at the time(note that I stated "at that time", NOT the general trend as it may just be a retracement) has reversed (printed a block thats opposite to the direction towards which you were originally trading), thus signaling you to enter an opposite trade. If you want to be more careful, draw resistance/support lines on the renko charts, so you might want to keep out of trading when near those levels.

For me, I just trade accordingly to the colour. Renkos are kings when it comes to trend trading; no outside noises no disturbances. Stick to your rules, stick to the colour. Choose currency pairs that trend very well, e.g E/U, the yen pairs etc. Trading several pairs at one go ensures that you have a healthy basket. My maximum was around +6500 floating pips in September. If you don't believe me, open the charts, set up the indicator and you will see what I mean. Try it, you might just be blown away by its simplicity and profitability! I only check my trades everyday, before the Asian open, for about 10-15min and it's done. I continue with my daily routine/chores/work after that. I am not saying that this system is the best, I am just saying that this is the most stress-free system that I have tried and traded, plus S&R lines are so easy to draw using renko charts!

The reason why I wanted an EA was that sometimes when I checked my trades my entries are not perfect; about 30-60 pips behind and I feel that is kind of regretful; imaging losing out this much when you're trading 16 pairs at one go =(. It would be great if an EA is developed that automatically trades for you. This allows me even more freedom to focus on other stuff, such as developing my own intra-day trading system. I would be indebted to anyone who manages to come up with this EA!
  • #626
  • Oct 19, 2010 12:32pm Oct 19, 2010 12:32pm
Quoting Maveri4k
My strat is really very simple, Sell at red, buy at blue. Stop loss is always 2 blocks worth of pips (my blocks are 75pips each as I am a long term trader, that means SL is 150 everytime u enter a trade).When you get stopped out, it 100% means that the trend at the time(note that I stated "at that time", NOT the general trend as it may just be a retracement) has reversed (printed a block thats opposite to the direction towards which you were originally trading), thus signaling you to enter an opposite trade. If you want to be more careful, draw...
Maveri,
You explained well, still some more detailes may be required such as TP ? MM?, and some chart samples.

I hope someone on FF may be able to help. If not, let me know and PM me, though I am not a programmer, however, studied a lot of codes on FF, may be we can start a joint project to work on it.

Cheers!
  • #627
  • Oct 20, 2010 5:05am Oct 20, 2010 5:05am
Basically SL is 2times whatever the renko block sizes you decide to use. Thus, your money management is kind of proportionate to the block sizes that you use. E.g If you only want to risk 1% of your 10k account trading mini lots, your SL would be 100pips and thus the renko charts that you would want to use is 50 blocks. I am trying to find this indicator which I believe would make our trades more accurate as it tells us what is happening between the blocks. If anyone has it please post it! I saw it somewhere before but I could not remember and now I am trying to look for it.
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  • #628
  • Oct 21, 2010 12:30am Oct 21, 2010 12:30am
are you using some sort of color box indy that draws out your 75pip blocks? Seems interesting to say the least.

Tell us more.
  • #629
  • Oct 21, 2010 6:32am Oct 21, 2010 6:32am
Quoting Maveri4k
My strat is really very simple, Sell at red, buy at blue. Stop loss is always 2 blocks worth of pips (my blocks are 75pips each as I am a long term trader, that means SL is 150 everytime u enter a trade).When you get stopped out, it 100% means that the trend at the time(note that I stated "at that time", NOT the general trend as it may just be a retracement) has reversed (printed a block thats opposite to the direction towards which you were originally trading), thus signaling you to enter an opposite trade. If you want to be more careful,...
Yes, its good simple strat. But can be dreadful when its ranging and having such big SL. Whats worst you came across trading this way? How long have you traded it?

Thanks.
  • #630
  • Oct 21, 2010 7:25am Oct 21, 2010 7:25am
Yes I agree that ranging markets are not good for renko. However, as I mentioned, your SL and subsequently your renko block sizes has to fit into your risk and money management. If you're an intra day trader 20-30 pips per block is good. If you're a trend/swing trader who likes to set & forget like me you definitely have to use bigger blocks and hence bigger SLs. IMO if anyone tells you that his/her system works in any market condition it's b.s. Each system has its forte, that is where diversification comes in. I assure you that one big trend totally kills off any losses that you have made in that year, and that's for only ONE currency pair. Imagine if you're trading 15-20 pairs and that a typical pair trends for 50% of the time?

Moreover, since we know that renko charts are not good for ranging markets and we're bound to lose some during those periods, it's our initiative to source for and learn strategies that do well for ranging conditions.

I have traded for about 3-4 months using renko charts and like I've mentioned before my record was around floating +6500 pips during that time and that includes my losses in between.Ranging markets can result in losses in between 500 to 1k+ of pips depending on your block sizes, but like I stated I still netted 6500pips.Remember to the golden rule: cut your losers and let the winners run. There is no way of prediction when a trend will end; if anyone can do it with a 100% record you can safely announce to the whole world that he is god. I missed out on the earlier part of the year while the trends tend to occur and hence are massive; one of my friend netted 11.5k pips in May i think(lol that was when I first saw and decided to test renko charts).

All in all, you can win 99.999% of your trades using your particular system, but I can tell you that even in a bad year when my win trades are only 50%, I can have an ROI that's 10times of yours =P. Seeing is believing, so the only way for you to find out is to test it for yourself!

Back to topic: I really hope someone who can make an EA using renko charts and my strategy =)!
  • #631
  • Oct 21, 2010 8:44am Oct 21, 2010 8:44am
Quoting Maveri4k
Yes I agree that ranging markets are not good for renko. However, as I mentioned, your SL and subsequently your renko block sizes has to fit into your risk and money management. If you're an intra day trader 20-30 pips per block is good. If you're a trend/swing trader who likes to set & forget like me you definitely have to use bigger blocks and hence bigger SLs. IMO if anyone tells you that his/her system works in any market condition it's b.s. Each system has its forte, that is where diversification comes in. I assure you that one big trend totally...
Thanks, good to know its working well. Wanted to test this out sometime ago but never got round to it. Whats the most negative is been in the 3-4months? I think September was a good trending month for many pairs, so hope its not a one off.

What do you think about only going long when above 200EMA and short when below it.
Or say trading 0.02 lots(or 0.2, 2) for long (blue) when above 200ema and 0.01 lots (or 0.1 or 1) when see red block to go short but still above 200ema, so risking less when going against the trend but can catch the down movement to 200ema. and visa versa for below 200ema?
  • #632
  • Oct 21, 2010 9:02am Oct 21, 2010 9:02am
dont want to disturb your discussion, so just a quick post here.

since i started looking at renko charts, i have gotten more confident and my trading slowly starts to make sense. i simply love those bricks

edit: oh and thx to LastViking for making it possible to use renko in MT4. your EA works really well.
Patience is key.
  • #633
  • Oct 22, 2010 8:21am Oct 22, 2010 8:21am
Maveri4k,
Here is my shot at programming your idea. I have also tried this idea on P&F charts in the past but the reversal is tought to get through. The lack of 1M history data negates any resonable backtest which is a big lie anyway, So I made this test using 30 pip instead of 75. I left some of the options in the EA you just have to remove the // to activate. The BarTrade changes the Close[BarTrade+0]. The [0] results Look great but are as false as can be as far as reality is concerned. The [1] looks more realistic but only demo testing will prove it.

Lets test and get back with results. I firmly believe your are on the right track with the larger Renko but The problem is with the size of the Renko it can take a long time to test. I tested enought to prove to my self that small renkos 5, 10 ,15 end up StopLossing you to the poor house.

Ray

Quoting Maveri4k
Yes I agree that ranging markets are not good for renko. However, as I mentioned, your SL and subsequently your renko block sizes has to fit into your risk and money management. If you're an intra day trader 20-30 pips per block is good. If you're a trend/swing trader who likes to set & forget like me you definitely have to use bigger blocks and hence bigger SLs. IMO if anyone tells you that his/her system works in any market condition it's b.s. Each system has its forte, that is where diversification comes in. I assure you that one big trend totally...
Attached Image (click to enlarge)
Click to Enlarge Name: 2010-10-22_090045-Renko-block-trades.png Size: 83 KB
Attached File(s)
File Type: mq4 RK-Renko-Blocks-trades.mq4   19 KB | 970 downloads
  • #634
  • Oct 22, 2010 8:35am Oct 22, 2010 8:35am
[quote=Traderduke;4116192]Maveri4k,
Here is my shot at programming your idea. I have also tried this idea on P&F charts in the past but the reversal is tought to get through. The lack of 1M history data negates any resonable backtest which is a big lie anyway, So I made this test using 30 pip instead of 75. I left some of the options in the EA ========

hi
can you explain how you can have 324 bars in test and 429 graphics errors
see on the top left of page

kino
  • #635
  • Oct 22, 2010 11:38am Oct 22, 2010 11:38am
A really big thank you to traderduke for spending so much effort in programming the EA =). I analysed the the chart and would like to ask how is it possible that your profits are so big and your losses are so small? I would like to know the settings that you used for the backtesting as I have been tinkering around and did not manage to emulate the results. I am sorry as I am a nut when it comes to analyzing the EA. Is the EA closing the order and entering an opposite trade whenever the trend reverses by twice the renko block sizes?(e.g. lets we're using 30pips block and it shorted at first but after the trend reverses by 60pips upwards it closes the short position and enters a long trade immediately). I hope more people would contribute as I am definitely not programming inclined! Once again thank you Traderduke
  • #636
  • Oct 22, 2010 3:11pm Oct 22, 2010 3:11pm
No Idea!

[quote=kinonen;4116218]
Quoting Traderduke
Maveri4k,
Here is my shot at programming your idea. I have also tried this idea on P&F charts in the past but the reversal is tought to get through. The lack of 1M history data negates any resonable backtest which is a big lie anyway, So I made this test using 30 pip instead of 75. I left some of the options in the EA ========

hi
can you explain how you can have 324 bars in test and 429 graphics errors
see on the top left of page

kino
  • #637
  • Edited 4:08pm Oct 22, 2010 4:06pm | Edited 4:08pm
Maveri4k,
1. I'm just running a Renko backtest using a Renko script with 30 pip on a 5m offline chart. This EA has no "settings" per say. It does allow you to control the "Close Bar back number". The rest is all internal to the program. The concept is realitively simple. The [0] run which netted $4K is a backtest lie in reality the highs and lows of the CLOSE will take you out prematurely. I use a Renko Script that has wicks, this way you have a fighting chance to backtest it.

Read the EA, line 75 -100 is all you need to understand. The rest is just standard MM and entries and exits and I have them at 0 so the whole run is based on the candles, is the present candle up or down from the last candle?? You call it red & blue and I call it up or down. Read the "results" and you'll answer most of the questions. The long exit requirements are the same as the short entry requirements so yes your out and right back in the opposite direction, but thats controllable, if the signals work I want to be right back in it.

The only reason we should see different answers is the 1m data and the Renko script, lots of luck in matching them. I'm down loading some more history data but that won't help you and I to match unless we both use the same source for the history and use the same script. You say your off but by how much, pictures and numbers would be a big help.

Right now i'm running this EA on 4 pairs Demo, GU & EU with Close[1] ,GJ & EJ with Close[0]. So far the U's entered a trade at 09:36 and at one point were up 70 pips the J's haven't traded yet. The U's 16:55 are up 2 pips no exits yet.

The weekend is coming and I'm in GMT-5 its 17:07. I'll be up on the PC off and on all weekend so Try it out and get back to me so we can test any new ideas by Sunday. I'll attach the script I use. My broker only trades 1,5,15,etc so I must convert script to a 1m chart and load it on to a 5m offline to run backtest or live trade.

1.If we don't match then we don't match but does it make money???
2. How big do we have to make the bricks to be a winner?? smaller trades quicker!
3. Can we improve on the concept, HMA, KC, Ichimoku, etc????

Ray


Quoting Maveri4k
A really big thank you to traderduke for spending so much effort in programming the EA =). I analysed the the chart and would like to ask how is it possible that your profits are so big and your losses are so small? I would like to know the settings that you used for the backtesting as I have been tinkering around and did not manage to emulate the results. I am sorry as I am a nut when it comes to analyzing the EA. Is the EA closing the order and entering an opposite trade whenever the trend reverses by twice the renko block sizes?(e.g. lets we're...
Attached File(s)
File Type: mq4 RK-Renkoashi_scriptwWicks.mq4   14 KB | 910 downloads
  • #638
  • Oct 22, 2010 5:07pm Oct 22, 2010 5:07pm
Quoting Traderduke
Maveri4k,
1. I'm just running a Renko backtest using a Renko script with 30 pip on a 5m offline chart. This EA has no "settings" per say. It does allow you to control the "Close Bar back number". The rest is all internal to the ......

2. How big do we have to make the bricks to be a winner?? smaller trades quicker!
3. Can we improve on the concept, HMA, KC, Ichimoku, etc????
Again....

http://www.forexfactory.com/showpost...&postcount=632
  • #639
  • Oct 22, 2010 7:09pm Oct 22, 2010 7:09pm
Quoting cspip
Again....

http://www.forexfactory.com/showpost...&postcount=632
Blindly choosing trade direction bias based on price < or > MA is not a good (robust) strategy. It completely ignores mean reversion and volatility. FYI, the same problem exists even if you throw in a MA cross condition.
  • #640
  • Oct 23, 2010 1:05am Oct 23, 2010 1:05am
Hey traderduke,

I re-analyzed the EA and utilized the script and did according to what you say. The results are really freaky...+5.5k pips for USD JPY since 1st July 2010, +7645 pips for USDCHF since 04 june 2010 and +7846 for USDCAD since 01 June 2010, not to mention the other currency pairs. I used 20pips renko for my test. I edited the script such that I changed everything from M1 to H1 and thus I managed to get more backtests.

However, what concerns me is the 100% precision of the EA to enter long/short such that the box ALWAYS closes in the direction of the trade that the EA entered. That I find really weird and thus live tests are needed. Attached is the picture
Attached Image (click to enlarge)
Click to Enlarge Name: Renko EA.JPG Size: 283 KB
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