Renko Trading For Gamers (RTFG)

Funny you should mention gold, is what I've been practicing my renko range bar setup on for a couple of months now... but we in the USA aren't even supposed to be trading it from what I think I read on a FXCM forum the other day.
Do you know if that's true?

I never cared about rules or regulations, profits come first, and wash sale and free ride and taxes and regulations come later.

By the way, no one is going to be looking for you. Governemt also uses Risk Reward rations and profit vs investment. They are not going to pay some guys 4 grand a month so they hunt down small people. If you are smart enough you can trick any country or system. Bernie Madoff is my favorite hahah. Or De Gaulle who was the reason Nixon ended the Gold Standard, after De Gaulle took planes with dollars to US which returned filled with gold.
Any system must be tricked in order for it to make a way for better system. The victims are usually the big guys, never worry about yourself.

There is no indi to modify stoploss in chart? I think stratman from THV forum did that in his youtube videos on THV, if I remember correctly. Or an indi that can attach stop losses to line?

I just jumped off gbpusd at 6 point profit (it stayed in that area for last two hours) before going to bed and right after closing the trade it just shot 15 point up just a couple of minutes ago damn^^ Edit:22 pips Now I am not gonna have good night sleep.

I still have short on EU open, we'll see how it goes.
If Gold is not falling, it's gonna be a channel or something.

Sorry forgot about your question, yeah I think I remember an ea you can attach to your chart to move your stop loss & tp around on the chart, but it's been a long while since I used it so it may take me a while to find it for you.
You may find it yourself 1st in this thread called "ALL Order Related Indicators, Scripts and EA"
http://www.forexfactory.com/showthread.php?t=193727
gl

I predicted a nice dip in gold earlier this month as you can see the bottom trend line breakout inside the channel, which were manually draw too.
Since gold has been on a pretty steady up trend, due to world recessions and devalued currencies etc (so foundation of the setup is fundamental based guess you could say), I try to only buy it after a pretty good dip in the price, & just hold onto negative trades as long as it takes for them to come into profit so I can add a trailing stop loss, but it is on a demo account, & don't know if I'd have the nerve to really risk a whole account on a couple of trades in real life.

I see no mention of MT4 on the Oanda website.

Sorry everyone for offtopic. You need to open a new SUB account and where you choose leverage click on advanced options and check "link account to MT4", or follow these steps:

http://fxtrade.oanda.com/community/f...;f=17;t=005687

Monthly, yeah, However on weekly price has failed to go through resistance three times and there seem to be no new low. It is like someone is trying to push Gold higher aigainst where Gold wants to go.

Thanks for the link, I am going to check that out.

Yes I wasn't disagreeing with ya, I just said I had predicted the drop much earlier this month, but guess you'd have to take my word on it, because I didn't post my chart sooner.

I did not say I don't believe you^^

But look how it failed to retest the line that I ve drawn.

Actually, the stock market has been so well since august, I think people will start to pull their money out of gold, since it is not rising anymore.

I am serious^^ it might fall very deeply. There is no fundamental reason to invest into gold anymore (as I said, stock market looks healthy), unless media starts screaming again about crisis and stuff.

I have college on Tue, Thursday, Fr, so I can trade only Mondays and Wednesdays and monday is always slow and usually without a direction, so I have only one day for forex a week. I am even thinking of dropping out, because Forex seems so much more important than physics right now^^. I miss everything!

I spend each weekend reading books, threads, websites, improving n testing my system but I am only able to have two trades a week and that sucks.
When I will have time, I will post each trade on renko on live acc, but right now I miss everything.

By the way:

I think Pandora Box is the best system. Since it shows the same signals as others, but uses RSI and MACD and HA candles, you can additionaly look for divergences, overbought zones and with HA candles spot weak candles. I feel more comfortable with Pandora Box. You can combine Mihailo's system with Pandora by adding 13 Complex indi and ichimoku to give you a little more confidence.

I am thinking about comparing all possible systems, renko and normal, to look if they give the same signals, because something tells me they all do give the same signals on the same TF.
I think I can use any system, just combining it with trendlines and other SR levels it will work just like any other system.
In the end it is momey management and dedication and discipline that makes one profitable.

If price starts falling, then any system will show that it is time to sell... and when the market is ranging, nothing will save you unless you know the market is ranging.
In the end, it is the actual person in front of monitor that matters. It took me four months to realize that. I remember I followed some stupid email that told me to buy a certain stock, I bought it and it fell and hit my stoploss almost instantly. I remember that with a laugh. Trading is so much different. Forex is about being creative, noone rides a bycicle the same way, we all do it differently. Same with forex, you try to follow someone you will most definitely fail.

You read Nicolas Darvas' How I made two million in stock market that was written in 60s? The whole book is about how you should not follow anyone's advice.
When I read it I was someone who was looking for free signals that make tons of money, but from today's point of view, it is foolish to be someone like I was (we all were like that werent we?) It is one of those most important books that one can read, it has barely any information about tech analysis, but the author says enough words to make one successful.
Trading is so much easier that it is thought to be.

OK, I am ruining the thread^^ I will post some trades next time.

On the contrary ReaM, I think you may being it back to life, I feel your excitement but think you should seriously reconsider dropping out of college for more trading opportunities, instead maybe change your major instead.
Have you looked at linkedin.com before?
Maybe seek a mentor there, & move in the direction of becoming a future hedge-fund manager etc...
Just don't forget about your friends here at the FF & RTFGs when you make it big. ;-)

Been testing the THV v4 and renko (Mihailo's) the whole time. Signals are mostly the same, the trix only confuses from time to time.

I found out when I changed the Mihailo's coral from 34 to 47 it gave better results, because it removed all the fake outs. but no matter what system I test, it is profitable. Worst was 61% (thv v4), which is alright.

I also tested renko 2 with brick size with pandora, it is good, but very stressfull to trade.

I have just tested Pandora box (with 13 Complex indi and cloud and coral) from 20dec10 to 20jan11 (a month), it gave me 205 trades, 149 wins, 56 losses, 73% win rate.

However on live trading, that would be a lot less, since I tested the whole day, but we need to sleep right )) We cut it in half. Plus I will miss lots of trades, so we cut it in half again, and we have 50 trades a month of which 36 must be profitable. I risk 1% of account per trade max, usually a little less, so it must be about 20% a month growth on account.

It is all theory, need a month of free time to test it all thorougly.

I will never ever forget you guys. Especially if I lose all my money hahahaha 8> kdding kidding.

This is amazing what you guys have done here... I was a little of a gambler half of a year ago and FF changed me and this thread is the most important piece of information that's on the whole wide web.

I never knew that something like renko existed until I somehow saw this thread. Thank you for making renko possible!!!

Yeah, I have an acc at linkedin, however I dont know what it is I was invited by a friend to create an acc there. I ve already changed major, I used to study film (dropped out), now physics (not dropped out yet^^).

I am going to look at the 14 consecutive wins I had and analize the indies and stuff and post the results here on Saturday, tomorrow 8 hours of college O_o.

I felt real good when I won 14 times in a row.^^

Edit: I ve just tested, I must say I don't know^^ simply fits the system. It was over three days 20 21 22 23 dec.

Linkedin is just a very fancy social network for professionals.
The reason I thought of them is because there are some very specific groups you can join there that may help you decide or not if you really want to make another change, but I'm sure you'll be successful in whatever decision you make.

Did you have any luck finding that ea to makes moving your tp/sl around on the chart possible in MT4?

If you didn't I can probably find it for you this weekend.

Yes, I used this one: it is has a bug that after some time moves the stop loss to 2 pips and I get stopped out instantly or sometimes the stoploss is not modified at all.. I think I am going to continue trading through Oandas platform it is more safe I guess.

Please, don't waste your valuable time on me. You have already helped me more than you think!

The other bad thing about lack of time during business days is that I cannot really use renko on weekends since it needs an open market in order to update. If I want to look at a new pair, I ll have to wait for monday. I have not slept two nights this week, I was testing renko. Worth it!

Thanks for your help and time.

I want to go through 2010 again, London open til close only, basically trying to simulate me trading. Also I want to separate which days work best, which worst. Which trades I should not take even if rules are met etc.
I am gonna post it then here on sunday or so.

I am in college right now in library, missing all the pips.

Here is is how to visually backtest renko on a weekend.

1.) Open up the strategy tester and select the RenkoLive3.2EA
2.) Choose M1 as the time frame to run it
3.) Select the Currency to test
4.) Choose "Every Tick"
5.) Go into Expert properties to configure block size
6.) Click Start
7.)Then Click the Pause Button in the visual
8.)Open up the Offline Renko Chart and start using...

a.) U can add indicators
b.) Simulate live trading(U cannot enter orders, put u can mark entries and exits (paper trade))
c.) Or just let the chart generate and then go thru the history


It takes about 5 minutes to set up, since it is exactly like how you would backtest any other EA, the exception is that you open the offline chart

Oh, cool. Thanks.

I still prefer F12 method, but I did not know this works on weekends thanks alot! Even picture attached ))

Thanks.

OK, some of the results are (all of them about 100 trades, not enough to confirm, but all I wanted is to select the pairs that best fit me and size 5 Renko, for you other pairs might work better):

EURUSD 73% (more than 500 trades tested)
USDJPY 75%
GBPUSD 76%
EURGBP 69%
AUDUSD 65%
EURJPY 65%
USDCHF 65%

By the way, these are the percentages of valid signals, not wins. A valid signal means, when conditions are met, you pace a trade and the price moves in your favor. If you try to risk 10 pips to gain 25 you will most likely lose money, because you are going to be stopped out all the time. Different pairs need different stoploss levels, you can mark your valid signals and measure the needed pips for stoploss by CTRL+F. I recommend about 20 pips, but money management is your business. I'll explain more later.

Some pairs might need brick size adjustment. EURJPY might need size 4 in order to scalp it, but I have not tested it...

I recommend start trading slightly before london open (there is always a still market ready to move one way or another and it is perfect for renko 5) until slightly after london close. If by London close the market is not moving, then it probably won't move anymore. Best days are Tuesday and Thursday. Followed by Wednesday, and then Friday before noon and Monday (tested only on EURUSD GBPUSD).

Money Management:

The theory is: In general, in Forex there is no difference whether price moves up or down. The quote is the relation between two currencies and that relation could be USDEUR and not EURUSD and it would not matter. That gave me the idea that price moves up by as much as it moves down. Pure mathematically it means, the best R:R is 1:1.

A trend is the difference between the sum of heights of up candles and down candles (not amount of candles, but the heights of each up candle vs height of each down canlde). So if the trend is up, then the sum of heights of up bars must be bigger than the sum heights of down bars (candles). In that case you can risk less than what you can gain and your R:R can be 1:1,5. But not 1:2!!! I have made 30pips:60pips test and it was much worse, and I mean MUCH worse than 50pips:60pips.

Who does not believe me, get this: Risk 5 pips and take profit at 100 pips. You think that works? You are going to be stopped out 20 times before you reach 100 pips! And opposite, risk 100 pips and take profit at 5 pips: You are going to get 20 wins in a row before you wipe out your wins with one trade. Does it not point us that R:R 1:1 is the best one? Absolutely it does. Now, hold on. I know your friend risks 20 pips and makes 100, but there are some trades with perfect signals and when you learn how to spot them, you will make 100 pips risking 20. These trades are break out trades. Check Petar's pip cleanser (this thread) strategy, where you can risk less than what you gain, or simply use bolinger bands to hunt those break outs. Experience will tell you when to get out, but for beginners, stick to 1:1. I am sure best traders use 1:1, they simply move their TP further if they are sure the trade will go for longer.

So let's agree 1:1 is best (add spread to your reward so it is 1:1,05 or so, so it is a clean 1:1). Now, risking 20pips to get 22 (20+spread), means that 20 pips should be maximum 2% of your account. I use 1%, much safer to trade with, and would recommend everyone to use 1%.

Those percentages of valid signals works like this: if you use 1:1 R:R on EURUSD you are going to have 73% wins. If you risk less pips, you are going to have LESS wins (because you are going to be stopped out more times). If you increase the amount of pips you risk, you will have more wins, because you are going to be stopped out less and your target profit will be reached more often. In the end 1:1 wins.

Question:

can candles be programmed so that if it takes long time for candle to form, it is dark green, if takes less than a minute it is bright green and rest inbetween? Same for red candles (bearish).

I know there is this indicator that shows how long it took for a candle to from (in another renko thread I think Mr. Nims), but it would be cool to have a candle to show that information an not another indicator.

Sometimes you see a nice pattern in the past, but when you look at how much time it took, it might be not worth sitting and waiting 5 hours to lock in 15 pips... I'm gonna ask mr nims later.

I hope you all caught eurusd flying up today, because I did not. I just had 6 scalps, 4 wins, 2 minor losses. +2.5% on my account today.
Happy week everyone!

Comparing 10 brick size renko and 5, the same day, 25 January.

The actual box is better used with 10 brick size. The entry is clear on the top image. While 5 is better for scalping.

I think in the end 10 is a bit more profitable, if conditions are met, it is a 80% win.

Just for extra confirmation, would be great if we could have some folks in the RTFG thread post some pandora's box charts setups with this Pipholic fractral s/r indi from goldfight's thread to see how closely & often it matches up with drawing the original pandora's boxes.
If it's 100%, then we may have an easier way to draw them.
& could someone plz post the template for the original Pandor's Box setup?, it seems to be lost in the thread somewhere.
It probably would help a lot if Peter would re-explain what the original Pandora's box was & is,
but I don't think it's really a simple fractal breakout setup.
I noticed with the pipholic s/r lines, interesting things seem to happen where the support becomes the resistance or vise versa, easy to see exactly where this happens with this indi on renko bars. Could we perhaps use that as new virtual pandor's box top/bottome as well?

[quote=45Fxguy;4351878]Just for extra confirmation, would be great if we could have some folks in the RTFG thread post some pandora's box charts setups with this Pipholic fractral s/r indi from goldfight's thread to see how closely & often it matches up with drawing the original pandora's boxes.
If it's 100%, then we may have an easier way to draw them.
& could someone plz post the template for the original Pandor's Box setup?, it seems to be lost in the thread somewhere.
It probably would help a lot if Peter would re-explain what the original Pandora's box was & is,
but I don't think it's really a simple fractal breakout setup.
I noticed with the pipholic s/r lines, interesting things seem to happen where the support becomes the resistance or vise versa, easy to see exactly where this happens with this indi on renko bars. Could we perhaps use that as new virtual pandor's box top/bottome as well?[

I just finished the whole thread. .I am learning trading with Renko. Do you still meet up on skype. Can you please add me - pipextract
Thanks

Shailesh

The attached indicator (not EA) gives cleaner renko bars and can be used to open offline charts on weekends.

5 digit brokers must attach zero in the end (which is cool, you can attach any number and have 5.4 bricksize renko)