Goldflight's RENKO strategy

Thanks for posting John, always like it when coders show interest in making indis esp for renko chart traders.
You guys are too few & far between...!, I appreciate the effort...
Regards, 45

Hi All

Well it was probably not such a good idea to write an indicator on a Friday night when I was supposed to be going out .... next thing I knew it was 3 o'Clock in the morning!!!!

Anyway - here is the first version of the Multi Block Size / Multi Indicator for Renko, along with another indicator I wrote (more explanation later)

Note:- This indicator requires the Wingdings 3 font, it is included in the zip folder for ease, this should be placed in the appropriate windows directory (usually WINDOWS/Fonts)

These are Indicators not EA's - they should be placed in the Indicators folder (I know it sounds obvious but people do ask!)

Multi Block Size / Multi Indicator - (!MBS MI Renko)
Note: ALLWAYS works on the last closed bar - NOT the open one

Parameters
xi_BoxSize.1 - First boxsize you wish to calculate for
xi_BoxSize.2 - Second boxsize you wish to calculate for
xi_BoxSize.3 - Third boxsize you wish to calculate for
NB. Boxsize is in PIPS, it will automatically adjust to points for 5/6 digit brokers.
xi_MA.1 - First Moving average
xi_MA.2 - Second Moving average
xi_MA.3 - Third Moving average
xi_MA.1.Method - Method to use on MA 1
xi_MA.2.Method - Method to use on MA 2
xi_MA.3.Method - Method to use on MA 3
NB. To determine whether the trend is up or down it uses the last close and its position to the MA
xi_ADX - Period for the ADX (Plus above Minus or vice versa)
xi_RSI - Period for the RSI (RSI above/below 50)
xb_Visualize - Switch on if you wish to see the bars from another box size
xi_Vis.BoxSize.Idx - The box size index you wish to see (1,2 or 3)
xi_Vis.Offset - How many bars in front of the current bar to display
xi_Vis.Nbr.Bars - How many bars to display
xi_Vis.Wick.Width - Width of the wick (1 matches standard MT4)
xi_Vis.Body.Width - Width of the body (depends on the zoom level 3 and 5 are normal)
xb_Vis.Show.Wicks - Show the wicks or not
xc_Vis.Bull - Colour of a bull candle
xc_Vis.Bear - Colour of a bear candle
xc_Bull - Colour of a bull arrow
xc_Bear - Colour of a bear arrow
xc_Text - Colour of the text
xc_Handle - Colour of the handle (if you wish to move the indicator around on the screen you select the handle and drag it to where you want the indicator to display)

RSI With EMA (!JMW MA RSI)
xi_RSI - RSI Period
xi_MA - Moving average Period
xi_MA.Method - method of the moving average (sma,ema etc.)
xi_DeadZone - buffer above and below the 50 line which you determine untradeable

If anyone has any questions or queries or can think of any improvements that can be made - leave a message on the forum

Regards
John

holy moly,
amazing^^

As I understand it, it shows me the renko chart next to the normal 1M chart?

I wish market was open, it looks very very interesting, thanks!!!


Cann the bull bear indi be converted into oscillator? So it oscillates between 100%-100%.

Hi

not quite, if you have a Renko chart open (normal way 1m chart with EA) offline renko chart at say 8 pips, you can add this indicator to the renko chart and it will show you the indicator values for other renko box sizes as well as if you wish the last x boxes from another renko box size.

You can use the scripts "SendOneTick" "SendFakeTicks" (available on earlier posts) if you wish to try it at the weekend.

Regarding your oscillator question - how exactly do you mean, I have created a "quasi" oscillator on my first example indicator (a couple of posts ago) do you mean something like this??

If so how would you suggest the formula be for certain indicator values (Moving averages I already have a formula, RSI I could probably come up with one) ADX - I have no idea how to turn this into a % - unless you determine a) some kind of threshold and b) something for the distance between +DI & -DI - then calculate that as a %???

Also - any other ideas for indicators to be added (I like my indicators - gives me a nice warm feeling when I enter a trade and all my indicators point the same direction - may not allways end in profit but at least I am happy when I enter.....)

Regards
John

Hi

Thankfully the weather is cold here in switzerland so nothing better to do than update my indicator.

ReaM asked if the arrows could be switched to an oscillator and as I personally prefer oscillator's to plain arrows I obliged.

However if you still like arrows you can still use this version, showing of the oscillators is default but can be switched off.

I am only going to explain the new parameters added for oscillation, the rest remains the same. Oh and this version fixes the bug that wicks were allways displayed regardless of the option

So - the additional parameters and their explanation:-

xb_Use.Oscillator - switch on if you want values up to 100, off if you just want arrows
xb_Osc.ADX.2Step - the calculation of the ADX oscillator has 2 steps to get to the final figure, if you only want the first step, switch this to false (explanation of the formula for ADX Oscillator is below)
xb_Osc.ADX.Threshold - used in the second step of the ADX oscillator calculation
xb_Osc.ADX.Percent - Percentage of 100 used in determining the ADX oscillator
xb_Osc.RSI.Percent - Percentage of 100 used in determining the RSI

Regarding the percents mentioned above, in both ADX and RSI even in the extremes they dont get to 100 on a renko chart, which is why there is the possibility to reduce the sensitivity.

ADX Oscillator Calculation

Difference between +DI & -DI = Diff
Max = 100 / ADX.Percent * 100
Oscillator = Diff / Max * 100

If 2 step is not on - then this is the oscillator value, otherwise it continues

Oscillator / 2
Difference between +DI/-DI (whichever is highest) and Threshold
Osc2 = (Diff / Threshold * 100) / 2

Final Oscillator is Oscillator + Oscillator 2

Hope this make sense.

Regards
John

jmw1970
Thank you for the indicator, looking forward to testing it when the market opens.
I wish I was in Davos this weekend....

John,

I would like to see more of the indicator and what it shows when you have a chance.

Shawn

Hi all

In case anyone is suggesting changes, these are the changes in my development version which is going through testing at the moment:-

Display of a fingerprint (optional) - will display a "fingerprint" of the last 20 bars on all the renko block sizes

When using oscillator values a mark to indicate whether the value has gone up or down since the previous bar.

If anyone has any other suggestions for improvement please advise - allways open for comments

Regards
John

Hi

Here is a picture so that you can see if this indicator is something that would interest you or not

Hi JMW1970,

Yes i would be interested in your indicator development - just to say many thanks for your efforts.

Cheers

RobT

Hi All,

here is the latest and probably last version of the multi indicator for Renko, for simplicity I have included also the Moving Average RSI and Wingdings 3 font again in the zip file.

Changes/Fixes in this version are:-

Fix - Calculate start bar based on first bar in M1 not the renko chart
Chg - New option for displaying of a "fingerprint". This details the last 20 candles Up or Down on the 4 block sizes being analyzed. The bars are displayed left to right (like a chart) with the most recent bar being on the far right.
Chg - If the display oscillator values is selected, then a small dot will appear to the right of the value, this will be at the top of the number if the oscillator has moved up, at the bottom if the oscillator has moved down.

Remember this indicator only deals with closed bars - the Zero (or current) bar is completely ignored (therefore on the oscillator example above it compares bar 1 to bar 2)

Unless someone has something really special to add to this indicator the indicator will remain as is.

I am currently working on a "Trade Pad" expert advisor, this will allow you to trail stops automatically, have hidden stops (for the more unscrupulous brokers out there), move SL,TP and in pending orders Entry Price by moving a line, as well as place Market & Pending orders by pushing a button on the chart (this is easy in MT5 - bit of a pain in MT4):- If anyone would be willing to help "beta" test this I would be most grateful.

P.S. Today was not such a good day for trading GU, EU but after yesterday who cares????

Regards
John

Had a little trouble using that version of wingdings font on windows xp, it was messing up the display of some of my other indicators so had to go back to using my old one. Was wondering if anyone else had an issue with that font?
Also think maybe you should rename the indicator John's Swiss Army knife, since it will probably server renko scalpers the most who like to see the smaller price moves on the lower size bricks, as they trade off larger ones. Your indi seems a lot like the one Forexflash started well over a year ago, but his seemed to be a bit buggy & he never fixed it, so far happy to say besides that minor font issue, your coding seems of swiss quality. Thanks again for your working on this and please continue, & looking forward to testing your ea when it's ready!
jt in nc
PS: It seems your latest version works perfectly now with my older windings font.

Hi 45Fx / All

Thanks for the feedback, not sure what the problem was with the font, I use XP as well, maybe yours is a newer version of the font file. I included the file mainly for those who didn't already have the font installed.

NOTE:- To anyone installing this indicator do not bother with the font UNLESS you do not already have it.

Regarding the name, my original name did include swiss army knife, but on a search of forums I found a range of indicators already with this name so I didn't want to confuse people. Thats the problem with trying to name indicators, someone generally has already used the coolest names.

Regards
John

Hi Guys,

I've been working on a strategy for a while which doesn't use indicators just basic technical analyses (tops,bottoms,break outs etc..). The logic is pretty complex so I'm not going to write it all down right now, but I'm interested in your opinion. Please check it out, if you find it promising I can open up a separated thread to discuss.

Basics:

Trigger: Opposite direction bar close / or break up/break down bar
Target: Previous top/bottom / or some trailing when break out

Top/Bottom definition: At least 4 bars in one direction than at lest 3 bars in the opposite direction

Picture explanation:

Tops/Bottoms: marked with purple boxes
Trade Opening: Red arrow (up/down - LONG/SHORT)
Opening/Closing price: Yellow dots
Stops: Grey dots

I always open trades at bar close. I use 3 bars for stop normally, 2 bars stop for break up/break down entries. I use trailing stop with a special logic (will explain later). I use tops/bottoms to analyze the trend, so I don't always open positions for both directions.

I trade 2 strategies basically.

1. "Turn bar" - it happens when an opposite direction bar closes. Preferable at a previous top/bottom. I use the previous top/bottom for target and 3 bars stop.
2. "Break out" - when a break out occurs from a significant top/bottom (at least 2 tops/bottoms - marked purple boxes). I use trailing.

In the given screenshot I marked the trades manually for illustration. There were 12 trades, 11 profitable 1 loss. I noted the profit/loss in pips. I used 10 pips renko bars.

Regards,
Balazs

Farkasb, that looks really promising, seems like a great strategy, I'll be sure to try it out.
I would be happy if you would open a new thread so you can explain further. (remember to link to it here)

F

Thank you Balazs for your strategy and of course I would like to hear more about it. But have a question, see attached image, why you didn't open trades where I marked white vertical lines as far as I understand that was valid entries, right?

Looking forward to hear from you.

Hi,

At the first line, you are right, but I had to start the picture somewhere . Anyway, it would't have made any difference, because it would't have hit the stop, so in fact we can consider that the position was opened there. It would have resulted the same.

At the second, the trend was still short according my trend definition rules (however, it looks otherwise after that bounce). I check the last two tops and bottoms in pairs and their relative positions to each other. So for example if the second top (the latest) is lower than the prior one, than they suggest a down trend. Similarly consider the bottoms. In this case, the last two tops were down so were the last two bottoms (they are tricky a bit, because the closest bottom appear to be higher, but it wasn't a real bottom at that moment because it became a bottom only after the 3rd bar - see my top/bottom definition).

Hope it explains.

Balazs

Hi Farkasb,

Fellow renko trader here. Looks like you have a nice strategy based on price action - the key to the market. It would be good to start a thread or a trading journal on it. This thread here is Goldflights place for testing his ideas, and I reckon the more renko threads we have, the better!

Let us know when you start the thread and let's get some good strategies going!

Ezakimak

Hi All

For those of you using pivot points on Renko Charts beware of the following

If you use daily wood pivots (as provided in template from Goldflight)
a) The calculation of Pivot Point is wrong, it uses H+L+C+O/4, the official method is H+L+C/3;
b) The way it determines whether a bar needs to be included in the calculation is based on its open time, on normal time based charts this is not a problem as all bars will open and close within one day, this is not the case on a Renko chart, a bar can open one day then close another.

General warning, if your server is not GMT based then your pivot points will not match the official ones.

The differences can be significant, yesterday on EU the Pivot Point was 16 PIPS higher (or in my case 2 blocks);

Just for information if you use (as I do) Pivot points in your trading decisions.

Regards
John

Hi Guys,

As I'm new to forexfactory I'm a Junior Member at the moment, therefore opening a new thread is not allowed to me yet. I'll do it once I got my membership upgraded. Do you know when does it supposed to happen? What should I do to be a member?

..or alternatively, some of you may open it up and I'll post. We could name it for example "RENKO strategy for price action".

Thanks & Regards,
Balazs