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Renko + 2 heinken ashi approach

  • #1
  • First Post: Edited 6:19am Apr 18, 2011 6:09am | Edited 6:19am
Hello everyone

I have an idea for a trading approach. Just an idea, not tested yet. It's based on 2 pip renko block chatrs with heiken ashi (HA) and heiken ashi smoothed (HAS).

Entry long:
Last candle of HA and HAS closed in the up direction.
Exit long:
HA candle closed with a changed color.

Entry short:
Last candle of HA and HAS closed in the down direction.
Exit short:
HA candle closed with a changed color.

Purely mechanistic approach. The advantage of renko charts is that they are nice in showing price action. The disadvantage is that the price can change really fast and you may miss a valid entry (or exit) point easily when you are trading manually, however it may be a good way of automated trading. Because of the short time frame the movements occurs in I guess you can consider it scalping.
Maybe it's worth checking out.


The solid gold lines represent 50 pip intervals, the dotted gold lines represent 10 pip intervals. Not really visible on the miniature image. View full image for details.

http://img850.imageshack.us/img850/9166/screen4.gif


Cheers
Paul
  • #2
  • Apr 18, 2011 6:26am Apr 18, 2011 6:26am
idea is no good
  • #3
  • Apr 18, 2011 6:32am Apr 18, 2011 6:32am
Quoting whatfx
idea is no good
Bummer :/

How do the numbers look like?
  • #4
  • Apr 18, 2011 6:34am Apr 18, 2011 6:34am
Quoting whatfx
idea is no good

Why some people are so rude? Maybe burnt?

Thanks P.w.w for sharing, will have a look....
  • #5
  • Edited 9:26am Apr 18, 2011 8:11am | Edited 9:26am
I made visual profit calculations for the data on the chart (including 1 pip spread):

Total trades : 36
Winning trades: 16
Loosing trades: 20

Avg win: 6.8 pip
Avg loose: 3.3 pip

Profit: 43 pips

Longest loosing streak: 3
Longest winning streak: 3

Is there a way to test the strategy against historical data or forward test it?

I made profit calculations for the same data with 1 pip renko charts (including 1 pip spread):

Total trades : 67
Winning trades: 40
Loosing trades: 27

Avg win: 4.9 pip
Avg lose: 3.15 pip

Profit: 138 pips


From my experience it is really hard, dare I say impossible to manually trade 1 pip renko charts. The price can change very rapidly. Again, automatic trading might be the key to success.
  • #6
  • Apr 18, 2011 8:16am Apr 18, 2011 8:16am
....not really a big fan of Renko myself....but in a trending market



Last bounce off of S3 went to S2 in about 4 minutes flat

Maybe whatfx can test it for us


cheers
Attached Image (click to enlarge)
Click to Enlarge Name: Renko+2HA.jpg Size: 73 KB
  • #7
  • Apr 18, 2011 8:33am Apr 18, 2011 8:33am
Quoting P.w.w
I made visual profit calculations for the data on the chart (including 1 pip spread):

Total trades : 36
Winning trades: 16
Loosing trades: 20

Avg win: 6.8 pip
Avg loose: 3.3 pip

Profit: 43 pips

Longest loosing streak: 3
Longest winning streak: 3

Is there a way to test the strategy against historical data or forward test it?

I looked at this a little this morning.

The charts are deceiving.

With 2 pip blocks, it can paint 5 or 6 bars in a split second, before you have a chance to enter.

There go your profits.
  • #8
  • Apr 18, 2011 9:20am Apr 18, 2011 9:20am
Quoting billbss
I looked at this a little this morning.

The charts are deceiving.

With 2 pip blocks, it can paint 5 or 6 bars in a split second, before you have a chance to enter.

There go your profits.
Yeah, that's the problem. That's why I'm wondering if an EA would be helpful. Automatic buy and sell.
  • #9
  • Apr 18, 2011 9:32am Apr 18, 2011 9:32am
-I've been having a bit of a strange thing going on with my renko charts.

-I load the indi on a 4HR gbpusd chart for a 2 pip bar renko.

-when i open my offline chart, the renko chart changes as i change the timeframe on the original 4HR chart( chart i loaded the indi on) or when i restart metatrader. renko chart looks completely different.

any solutions?

thanks
  • #10
  • Apr 18, 2011 9:43am Apr 18, 2011 9:43am
Quoting P.w.w
Yeah, that's the problem. That's why I'm wondering if an EA would be helpful. Automatic buy and sell.
It may help. I've never seen an EA work as intended. I've seen many threads ruined and systems go into the dust bin, with the introduction of an EA.
All the attention is given to why the EA won't work and the system is forgotten about.
  • #11
  • Apr 18, 2011 10:31am Apr 18, 2011 10:31am
Here's anothar graph: 5 pip renko chart.

The only buy and sell signals are the color changes of the Heiken ashi smoothed (HAS).

Enter long:
HAS candle closing as green
Exit: HAS candle closing as white

Enter short:
HAS candle closing as white
Exit: HAS candle closing as green


Number of trades: 18
Winning trades: 8
Losing trades: 10

AVG win: 23.25
AVG lose: -10.5

Profit: 81 pips (including 1 pip spread for each trade)

5 pip renko's are not as volatile as 1 and 2 pip. They might be manageable for manual trading, however they need to be tested for a larger data set.


http://img192.imageshack.us/img192/8876/screen5.gif
  • #12
  • Apr 18, 2011 10:41am Apr 18, 2011 10:41am
Quoting billbss
It may help. I've never seen an EA work as intended. I've seen many threads ruined and systems go into the dust bin, with the introduction of an EA.
All the attention is given to why the EA won't work and the system is forgotten about.
Honestly I don't know anything about coding. Maybe most of EA's are too complicated to work properly, too many factors included.

The setup for this EA would be very simple:

Entry long:
Last candle of HA and HAS closed in the up direction.
Exit long:
HA candle closed with a changed color.

Entry short:
Last candle of HA and HAS closed in the down direction.
Exit short:
HA candle closed with a changed color.

Like I said I don't know anything about coding and implementing it in an EA might be difficult. But I'm optimistic

Cheers
Paul
  • #13
  • Apr 18, 2011 11:16am Apr 18, 2011 11:16am
Quoting Madness
-I've been having a bit of a strange thing going on with my renko charts.

-I load the indi on a 4HR gbpusd chart for a 2 pip bar renko.

-when i open my offline chart, the renko chart changes as i change the timeframe on the original 4HR chart( chart i loaded the indi on) or when i restart metatrader. renko chart looks completely different.

any solutions?

thanks
Try loading your Renko on a 1 min chart and try the indi (ver. 3.0) or the EA (ver. 3.2)
Attached File(s)
File Type: ex4 RenkoLiveChart_v3.0.ex4   12 KB | 1,411 downloads
File Type: mq4 RenkoLiveChart_v3.0.mq4   13 KB | 1,611 downloads
File Type: ex4 RenkoLiveChart_v3.2.ex4   12 KB | 1,353 downloads
File Type: mq4 RenkoLiveChart_v3.2.mq4   14 KB | 1,880 downloads
  • #14
  • Apr 18, 2011 11:22am Apr 18, 2011 11:22am
You could post your idea at Platform Tech, somebody just might take you up on it....

cheers
  • #15
  • Apr 28, 2011 3:33pm Apr 28, 2011 3:33pm
I got my hands on the EA and I have been doing some back-testing of EURUSD data on renko charts.
I tried different parameters for Heiken Ashi and different sizes of renko blocks.
So far I had the best results with 5 pip renko charts.


EURUSD data
http://img856.imageshack.us/img856/9349/bestn.gif

Won percentage: 39.11%
AVG win: 85.19
AVG loose: -29.09
Maximal drawdown: 3.47%
Total trades: 537
Initial deposit: 10000.00
Total net profit: 8379.05
Money management: 5%/trade

I used MT4 strategy tester. The above graph represents 1 month of data back-tested.


Is there any way I can get more data then just for one month back and make the testing more accurate?

Cheers
Paul
  • #16
  • Apr 28, 2011 3:45pm Apr 28, 2011 3:45pm
Quoting Madness
-I've been having a bit of a strange thing going on with my renko charts.

-I load the indi on a 4HR gbpusd chart for a 2 pip bar renko.

-when i open my offline chart, the renko chart changes as i change the timeframe on the original 4HR chart( chart i loaded the indi on) or when i restart metatrader. renko chart looks completely different.

any solutions?

thanks
Madness, load indi on 1min chart it should work fine.
  • #17
  • Apr 28, 2011 3:48pm Apr 28, 2011 3:48pm
Quoting P.w.w
I got my hands on the EA and I have been doing some back-testing of EURUSD data on renko charts.
I tried different parameters for Heiken Ashi and different sizes of renko blocks.
So far I had the best results with 5 pip renko charts.


EURUSD data
http://img856.imageshack.us/img856/9349/bestn.gif

Won percentage:...
Try to load more 1MIN data from History centre for EUR/USD or any other currency.
  • #18
  • Apr 28, 2011 4:05pm Apr 28, 2011 4:05pm
I used the procedure in Aktur's pdf to back-test renko charts.

http://www.forexfactory.com/showpost...67&postcount=3

I started forward testing EA today on a demo account. We'll see if it'll go well
  • #19
  • Apr 28, 2011 4:59pm Apr 28, 2011 4:59pm
I pretty much only trade Renko, below are the two setups I use, I prefer the Ichimoku for consistant profits.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: 1.gif Size: 40 KB
Click to Enlarge Name: 2.gif Size: 27 KB
  • #20
  • Apr 28, 2011 5:42pm Apr 28, 2011 5:42pm
Quoting forex1962
I pretty much only trade Renko, below are the two setups I use, I prefer the Ichimoku for consistant profits.


Please post your indicators, settings and if possible template. Thanks
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