Attachments: Renko SFS 2013 - A live test

Renko SFS 2013 - A live test

#1
First Post: Dec 28, 2012 8:18am Dec 28, 2012 8:18am

TauTrader
Joined Jan 2009 | Status: Per Aspera Ad Astra | 6,262 Posts

Good day to you,

I have started this journal alongside a trade explorer to test a straight mechanical system for 2013. Based on Renko charting and will focus on EU only for the sake of the test. I do not really know where this will go. I have selected Renko charts, as it will allow me to follow very strict rules in terms of entry and exit.

I will deposit $ 800 at a very high leverage ( 888:1) and with the additional 50% "bonus" will thus start with $ 1200.00. The additional $400.00 in the account is "free" money for the sake of trading - so I will measure return on the actual $ 800.00.

A year is a very long time...but I am going to attempt to let this survive for 2013.

I have only made provision for 4 consecutive losses. Should I hit 5 - the game is over. I would have liked to build in a provision for 5 consecutive losses - but the capital requirement will be too high for this test on a live account and I am not willing to risk that right now. I did not want to do demo, as it is different in terms of spread, slippage and fills and will not give me what I want.

I believe this to be slightly different to a martingale type exercise. The risks are defined. The rewards are defined.

The reward? Do not know - could be 10% - could be 20% - could be 30% - could be zero.

Margin could be called.

You are welcome to pop in from time to time. Welcome to comment. Welcome to give input. Welcome to take it/me apart.

Deposit will be made in the new year and I will then start.

All success

Regards

#2
Dec 28, 2012 10:13am Dec 28, 2012 10:13am

Kiads
| Membership Revoked | Joined May 2012 | 1,218 Posts

Hi.. TauTrader,
firstly please forgive my English it is not my native language..
I also love price base charting, I use renko for one of my main trading method.., and before you started would you please explain to us your trading method if you don't mind ? some screenshot maybe ?
actually I wrote my own renko chart builder indicator, what is your renko chart builder type ?
thanks n best regards

#3
Dec 29, 2012 11:59pm Dec 29, 2012 11:59pm

TauTrader
Joined Jan 2009 | Status: Per Aspera Ad Astra | 6,262 Posts

Quoting Kiads

Disliked

Hi.. TauTrader,
firstly please forgive my English it is not my native language..
I also love price base charting, I use renko for one of my main trading method.., and before you started would you please explain to us your trading method if you don't mind ? some screenshot maybe ?
actually I wrote my own renko chart builder indicator, what is your renko chart builder type ?
thanks n best regards

Ignored

Good day to you, Kiads

Your english is just fine. Not my first language either - so same page.

This test is not part of my trading. It is simply an exercise to see if one could actually trade a very basic signal-for-signal setup and end up with a positive result. It goes against a lot of good principles. The RR ratios are crap. No advantage will be taken from trend. Just basic signal - for - signal trades.

I attach the indicator I use to build my Renko charts

Will be using 20 pip blocks. Will start posting charts as soon as I start.

All the best

Attached File(s)

_KG_RenkoLiveChart_v3.2.ex4 12 KB | 498 downloads

#4
Dec 30, 2012 4:35am Dec 30, 2012 4:35am

Kiads
| Membership Revoked | Joined May 2012 | 1,218 Posts

Quoting TauTrader

Disliked

Good day to you, Kiads

Your english is just fine. Not my first language either - so same page.

This test is not part of my trading. It is simply an exercise to see if one could actually trade a very basic signal-for-signal setup and end up with a positive result. It goes against a lot of good principles. The RR ratios are crap. No advantage will be taken from trend. Just basic signal - for - signal trades.

I attach the indicator I use to build my Renko charts

Will be using 20 pip blocks. Will start posting charts as soon as I start.

All...

Ignored

Hi, TauTrader Happy healthy and wealthy New Year to You.

hopefully we can discuss further about this test in the future..
your standard renko builder program is mod creation from one of most respectful senior trader in my country and also senior member here 'Kang Gun'.
but as far as I know this program still not using anchor starting point for the data feed.
Also the problem with standard renko chart is the bigger your brick/block size then your change to miss inside block movement also bigger.
I hope you already know about that and can adjust your strategy accordingly..
best regards

Attached Image (click to enlarge)

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#5
Dec 30, 2012 6:14am Dec 30, 2012 6:14am

TauTrader
Joined Jan 2009 | Status: Per Aspera Ad Astra | 6,262 Posts

Quoting Kiads

Disliked

Hi, TauTrader Happy healthy and wealthy New Year to You.

hopefully we can discuss further about this test in the future..
your standard renko builder program is mod creation from one of most respectful senior trader in my country and also senior member here 'Kang Gun'.
but as far as I know this program still not using anchor starting point for the data feed.
Also the problem with standard renko chart is the bigger your brick/block size then your change to miss inside block movement also bigger.
I hope you already know about that and can adjust...

Ignored

Mr.K-

Thank you for the post. All success is wished to you for 2013

I understand the limitations of the current Renko charting available. This - however, is not going to influence my test.

This is going to be a straight forward non-emotional signal-for-signal test to be conducted. I am still not 100% sure which signal indicator I will use for the test. I'm still investigating... it is between 2 of them. One with more frequent signals - but a higher probability to reach 5 losses in a row. One with less signals - but lower probability to reach 5 losses in a row. Also still looking to finalize Renko brick size. May end up on 15 for EU.

I guess it boils down to the return factor at the end of the day. What will be "acceptable"? I'm looking at interest rates and this is what I need to beat. Also the relation between funds available vs. actual return. Should the test only bring in 10% per year - it becomes questionable - as there are better/similar investments to be had with lower risk. Should the test move to 15% - 20% per year, then it will be something to consider and investigate further. Since the rules will be very clear and "simple" - then an EA will be able to do the job.

This will not be a "double your account in 60 days" thing. It is about testing for a sustainable mechanical system that can be converted to run on it's own. It may fail within weeks/days.

You remain welcome to post and discuss.

All the best to you, sir

Regards

#6
Dec 30, 2012 8:44am Dec 30, 2012 8:44am

TauTrader
Joined Jan 2009 | Status: Per Aspera Ad Astra | 6,262 Posts

Ok-

I have made my decision..

Indicator chosen. We will be looking at 100 - 120 signals for the year. Renko bar size remains on 20 pips per bar. The breakdown for entries as follows:

First entry - 0.03 lots - TP 18 pips SL 42 pips

If 1st entry fails -

Second entry - 0.12 lots - TP 18 pips SL 42 pips

If 2nd entry fails -

Third entry - 0.50 lots - TP 18 pips SL 42 pips

If 3rd entry fails -

4th entry - 2 lots - TP 18 pips SL 42 pips

Multiples of 4 to compensate for the poor RR ratio. Would have liked another entry... but @ 8 lots - too much for a live test..

If the 4th trade fails - test ends.

Regards

#7
Jan 1, 2013 2:49pm Jan 1, 2013 2:49pm

YassJohn
| Joined Jan 2012 | Status: Trader | 4 Posts

I am watching with interest as I use Renko bars. I usually use 15 pt bars. I have been trialing Decision Bar indicators with some success.

#8
Jan 7, 2013 8:09am Jan 7, 2013 8:09am

TauTrader
Joined Jan 2009 | Status: Per Aspera Ad Astra | 6,262 Posts

Ok-

We are in business..

Deposited US$800. Waiting for the 50% bonus - will come.

First short failed. Entered long on signal. SL 1.3020 - TP 1.3080.

Regards

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#9
Jan 7, 2013 8:19am Jan 7, 2013 8:19am

TauTrader
Joined Jan 2009 | Status: Per Aspera Ad Astra | 6,262 Posts

Made a few early mistakes with the micro lots - was not sure how many lots to trade to get to where I wanted to be.. now sorted.

Trades will thus be:

1st entry - 3 lots ( micro)
2nd entry - 12 lots (micro)
3rd entry - 50 lots (micro)
4th entry - 200 lots ( micro)

Account limits me to 100 lots max. - so will do double entry on the 4th...

Regards

#10
Jan 7, 2013 9:16am Jan 7, 2013 9:16am

TauTrader
Joined Jan 2009 | Status: Per Aspera Ad Astra | 6,262 Posts

Quoting TauTrader

Disliked

Ok-

We are in business..

Deposited US$800. Waiting for the 50% bonus - will come.

First short failed. Entered long on signal. SL 1.3020 - TP 1.3080.

Regards

Ignored

Closed.

Regards

#11
Jan 8, 2013 6:26am Jan 8, 2013 6:26am

TauTrader
Joined Jan 2009 | Status: Per Aspera Ad Astra | 6,262 Posts

Good day,

Added another signal for the test. Long signal received.

Long @ 1.31169. SL 1.3080 TP 1.3140

Regards

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#12
Jan 8, 2013 7:44am Jan 8, 2013 7:44am

TauTrader
Joined Jan 2009 | Status: Per Aspera Ad Astra | 6,262 Posts

Quoting TauTrader

Disliked

Good day,

Added another signal for the test. Long signal received.

Long @ 1.31169. SL 1.3080 TP 1.3140

Regards

Ignored

Failed.

Next signal awaiting. Entry will be 12 lots.

Regards

#13
Jan 8, 2013 12:56pm Jan 8, 2013 12:56pm

TauTrader
Joined Jan 2009 | Status: Per Aspera Ad Astra | 6,262 Posts

Took short on GU. Previous long on GU failed ( would have been at 3 lots - but did not trade it) - so this short @ 12 lots (micro). Should this one fail as well, next signal on GU will be taken @ 50 lots.

Regards

Attached Image (click to enlarge)

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#14
Jan 8, 2013 2:08pm Jan 8, 2013 2:08pm

YassJohn
| Joined Jan 2012 | Status: Trader | 4 Posts

Hi ..looking good. I have been trading Renko charts for some time. Can you tell me please what size brick you are using? How do you decide on your initial stop loss?
Cheers,
John

#15
Jan 8, 2013 10:08pm Jan 8, 2013 10:08pm

TauTrader
Joined Jan 2009 | Status: Per Aspera Ad Astra | 6,262 Posts

Quoting YassJohn

Disliked

Hi ..looking good. I have been trading Renko charts for some time. Can you tell me please what size brick you are using? How do you decide on your initial stop loss?
Cheers,
John

Ignored

Good day to you, YassJohn

I use 20 pip brick size for the test. Did not start off too well. First had to figure out the lot size for micro - since I have always been trading on standard. But that is done now. Removed the 2nd signal indi again - got to stick to the rules to enable me to test properly.

I will only trade 1 bar after a signal.Short or long. SL is clear. 1 bar + spread against the signal. TP is clear. 1 bar ( incorporating spread) in favour of the signal. Then close and wait for the next. That is the rule. I want to keep it straight forward - plain mechanical - to see if it is at all possible to trade without taking anything else into consideration.

No regard for trend / levels / news.

Regards

#16
Jan 9, 2013 6:16am Jan 9, 2013 6:16am

TauTrader
Joined Jan 2009 | Status: Per Aspera Ad Astra | 6,262 Posts

Quoting TauTrader

Disliked

Took short on GU. Previous long on GU failed ( would have been at 3 lots - but did not trade it) - so this short @ 12 lots (micro). Should this one fail as well, next signal on GU will be taken @ 50 lots.

Regards

Ignored

Closed this. I now reset to 3 lots on the next signal.

Regards