RENKO auto-trader: Coded by SteveHopwood; inspired by Phanti

SERIOUS WARNING

1. Most Forex traders lose all their money.
2. Using the robot posted here in trading Forex does not guarantee success.
3. Trading this robot could lead to serious financial loss.
4. Trading this robot without understanding its underlying trading strategies guarantees traders will lose their money.

Intro
Phanti contacted me privately last week, with details of a Renko trading strategy that he wanted me to code into an EA. As coded:

 

1. the trade setup is the bot identifying a trend using my favourite D1 RSI(20). scooby-doo recommended this many a long month ago and I have used it to great effect ever since. scoobs is a professional trader; we should listen when he contributes. You do not need the indi on your charts; I attach it here so that you can if you want to. Trend detection works like this:
   1. Value is > 55: trend is up, so only trade long.
   2. Value is < 45: trend is down, so only trade short.
   3. Value is in between: market is ranging, so either stay out or use a range-trading strategy.

2. trade trigger is:
   1. a resumption of the trend after a retrace, when the bricks turn colour back in the direction of the trend.

3. trade confirmations are:
   1. MACD Main 10, 20, 10 (the bars) are above the Signal line (the red dashed line) for long, or below for short. Remember to change the default settings if you drag Macd onto the chart.
   2. The median price of a period of time that you select. The formula for calculating the median is (high-of-the-period + low-of-the-period) / 2
      1. market is above the median: trade long
      2. market is below the median: tradeshort
      3. MedianTf is your selected time frame in minutes, so the D1 tf is 1440.
      4. MedianLookbackCandles tells Rennie how far back in time to look for the hi-lo.
      5. read the post at http://www.forexfactory.com/showpost...4&postcount=16 for a full explanation.

4. trade exit:
   1. any of the mptm functions
   2. Renko trailing stop
   3. standard stop loss or take profit
   4. Change of brick colour and/or Macd direction

Most of the inputs are obvious. A few might need clarifying:

 

1. TradeLong and TradeShort allow you to control trading direction manually. Remember to turn off the auto-trend detection thingies if you want to do this.
2. TakeProfit and StopLoss send 'hard' stops if you set them to >0. Left at zero, they will be ignored.
3. LookBackBricks stops you getting into a move too late. If the candles have not changed colour within this number of bricks, there is no trade trigger.
4. the trade management functions come from mptm and are a cut-down version of the manager. Get the user guide from http://www.forexfactory.com/showthread.php?t=89371

The purpose of this thread
I just thought of a name for the bot; let's call it Rennie?

Rennie's puspose is not yet to offer a complete trading strategy, so don't go rushing out and putting it on live charts. As coded, it represents a very good looking strategy, but this strategy is copyright and includes some proprietary indicators that cannot be posted here. Besides, if The Brains here at FF cannot come up with something better, we had best all go home.

This thread invites discussion abut Renko trading and strategies to use that can be coded into Rennie. So if you:

 

1. have already used a Renko strategy to make your first gazillion and it can be automated, post it and I can add it to Rennie.
2. have any fav trend-detectors/trade triggers/trade confirmatory methods, post them and I can add them to Rennie.
3. can suggest ways in which Renko bricks can be used in conjunction with some of the other promising-looking bots, sing out.

There is a pdf attached for those of you unfamiliar with Renko bricks and how to set up the charts. I have little experience of them, so I would appreciate a couple of Renko experts casting an eye over the pdf and posting any corrections needed.

Let's see if we can develop and 'I am right or I am out' bot to rival TOP, without the associated drawdown.





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Posting restrictions
I have restricted the ability to post in this thread to: traders with at least 1 voucher; and traders on my 'buddy' list. I have done this because I do not want the thread cluttered with 'newbie' questions about the basics. New/inexperienced traders, this is not intended as a direct insult. What I want here is discussion with traders who fully understand what it is they are doing; when you newbs have been around a while, you will come to understand what a difference experience makes to the posts a member writes and shudder at the recollection of some of the questions you asked. I do. http://cdn.forexfactory.com/images/s..._the_floor.gif Go to your profile page; there is a link to the FF page that describes the voucher process.

Do not attempt to get around this by sending me pm's asking for help with your basic problems. Doing so will earn you an automatic ban from all of my threads.

I have set up a partner thread to this one and Nanningbob's at http://www.forexfactory.com/showthre...66#post3948666
There, you can post the questions that you cannot post here, about anything you need to know. Someone with the knowledge and experience you need will answer - just not necessarily me.

Traders/coders with experience who have not yet been vouched for, can get around this restriction be being added to my 'buddy' list; all you have to do is pm me to ask me to do this.

hope we r on the track with this thread....

contacted authoer of sys whether we might share it or not....



all of us that use the EA on DEMO ( !! ) should enable tradelong function if overall trend is bullish and vice versa.

kind regards
PhanTi

Hi

Thanks for the new thread, Subscribed. Obviously, you can not use the copy right indicator for this bot. As an alternative you may want to consider the +DMI and -DMI, these are readily available as part of ADX indicator. As you know ADX is a lagging indicator, however the DMIs are different prospect altogether. If you compare them with the copy right indicator you can see there is not that much difference.

Kind regards

Must admit Phanti you had me going when you started complaining in Steve's thread earlier, if this is the fruition of that little joke then lets hope it works.


Have got the renko bars up and running but don't seem to be able to find the PDF.

Cheers Eamonn.

again, this was an insider between steve and me...nothing offensive

anyway check his signature...hes an idiot ^^

Hi, I have played around with renko and CRB quite a bit previously. The only way I could get it to work relatively consistently is to use the PSAR zigzag with the HMA NRP. Profit target is 1 bar in the direction of the HMA with each change. It seems tempting to go for the trends but the chop in between is expensive unless you use wide stops.

Take a look at the picture, there is generally 3 - 4 bars a day at 15 pips or so.

Combined with a reentry on the one bar pull backs in trends and a hedging strategy to manage the odd reversal I think this could be very successful.

Picture attached.

I could not find any other indicators ( I checked what seemed like hundreds) that was relaible enough to eliminate the single floating bars at the end of trends that causes the problems.


I will post the indicators once I can find out where windows has hidden them.

rgds

Peter

Oops. I missed just about everything off post 1, then went out without noticing.

There is quite a lot more stuff there now, including the auto-trader.

The killer is that every color change or trend reversal is a 2xRenkoBarSize+Spread loss. What you will find is that you need a very high win rate to break even. Have seen lots of Renko smoke and mirrors in other threads on FF and on TSD and none are winners to my knowledge. Removing the time domain from the signal analysis makes for a tough road. A bar may form in 1 minute or 1 hour or 1 day giving no real indication of momentum by just looking at the chart.

With enough great minds, maybe we can break the code on Renko. I will watch closely, good luck.

KingHigh

Above statement is very true.

Although I developed a special RENKO strategy, I stopped trading it myself in time, for the simple reason I am doing a lot better with normal candles.

When price moves inside the brick, you cannot see that easily and therefor miss already out on pips, that you would have taken with candles.
In other words, I experienced that if you trade with a brick size TOO big, in this case 10, using normal candles I would already have my profit before the brick indicates.

I have focused more on 5 pip bricks then on 10, and still was not making as many pips as the "usual" way.

Let's be honest, EVERY strategy is a good one, if you stick to its rules.

I too looked at using Renko bars a while back but could not find any advantage in using them - seems to be 'flavour of the month' at the moment.

Maybe somebody with positive experience can post their findings.

Hehe. Not looking terrifically encouraging so far.

lol^^

I was testing EA on monday for phanti , and it lost 2k in just 2 days on 0.5 lots and the deposit of 5k. There was some problem with closing every open trade with 1-5 sl ...even if Sl was much higher ...its a good ideea btw for this type of Ea .

EVERY,???

If all of us only know Renko charts and tomorrow would come up Steve Nison with candle charts, than everybody would say: That’s a revolution, now we have the time factor and market sentiment in addition to only pip factors.
For my humble opinion Renko is a step backwards, but that’s just me and I played with it.

Good luck all.

Kang Gun is another of those who only posts when he has something really useful to say. A post from him is worth reading. This time, he sent me a pm but the same thing applies. This is the message:
"Just to give you an idea about renko:

1. Use one of three renko boxsize 5, 10 or 15
2. Use median line for last 24 hrs as reference which is taken from normal TF on MT4. Example: Let's say we use M30 to calculate median level for last 24 hrs. so the formula should be like this:

Median = ((iHigh(NULL, 30, iHighest(NULL, 30, MODE_HIGH, BandsPeriod, i))+iLow(NULL, 30, iLowest(NULL, 30, MODE_LOW, BandsPeriod, i)))/2);

So, your ea just buy if candle up on renko boxsize 5, 10 or 15 and price is above the median of the last 24 hrs.

And your ea just sell if candle down on renko boxsize 5,10 or 15 and price is below the median of the last 24 hrs.

It's a conservative entry, and you can develop another entry procedure.

Hope it's given you an idea.."

I have adapted the formula so that users can have a choice of time frame over which to calculate the median. Details in the Intro section of post 1.

Hi Steve,
The Shih Tzu and I are running from some heavy storms this AM and now hiding in the house. So I have some time to post alittle about this bot...
As of right now you could do this RENKO Rookie a real favor and post your settings for this bot....I have 2 demo's running, one OOTB (The Control) and the other one I'm making performance adjustments on....
I can't get either one to stay in profit.....1 win, 3 losses....1 win 4 losses etc.....
Unless you give me some uplifting news I'm going to shut them down....

Have a great day

whip

My settings ship with the EA. They lose.

The trader who inspired this thread has not shown any interest in it.

KG's pm actually meant to trade when all three charts - 5,10,15 - line up. This may or may not be possible to code into a single ea, but I dread to think of the hammering the cpu would take.

So, I suggest you forget it. I already have.

Thanks for the heads up Steve......I can use that demo space

whip

Hi, while this renko idea may be a dog it has sparked a re-think by me into using renko. I had concluded that renko was best for scalping and had abandoned it.

Having had a re-think it is now obvious that its best use is in identifying trends and retracements. Seems obvious but I have eventually got there.

Therefore how can we use the simplicity of Renko combined with the amazing capability of Steves EA's.

Anyway I am suggesting two ideas could be considered for development.

The first idea is very ( I mean really) simple (no indicators other than an EMA) and has no doubt been considered many times before but I believe may work very well with the use of the NB recovery system. It doesn't need renko to work but renko makes it a bit easier to visually understand.

Basically we buy above the open in an uptrend and sell at take profit limits and at the end of each day where profitable.

Using a range above the open filters out most ranging days while letting us capture the major upside, NB recovery is used rather than a stop loss as we know that in trends price will continue up . ( At worse will retrace a fair bit allowing an exit)


The attached PDF explains the system better and general requirements.

I have visually checked it on a number of pairs and at ranging and trending times and it seems ok.

I would welcome peoples thoughts on improving the idea and Steves consideration to program it up. It is a very simple idea, that will need refinement, but it does seem ok.

And no I don't trade it as I can't stay awake 24 hours but an EA can.http://www.forexfactory.com/images/icons/icon10.gif

I will post the other idea when I finish writing it up.

regards

Peter