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Lets Automate a Simple Renko Strategy!

  • #101
  • Mar 20, 2015 11:25pm Mar 20, 2015 11:25pm
Back testing video.

Inserted Video
  • #102
  • Mar 21, 2015 2:58am Mar 21, 2015 2:58am
Just an observation at this point, since I'm not yet up and running with the strategy. As mentioned by Magix, are you guys seeing a big enough TP to cover spread and commission? I'm using FXCM, which has a very low spread for eurusd, but trading .1 lots at $1/pip requires 80-cents round-turn commission. Based on a few of the reports I've seen, and factoring in the stop-out trades, this could potentially turn the strategy into a break-even system.


Comments and/or suggestions appreciated.
  • #103
  • Mar 21, 2015 3:08am Mar 21, 2015 3:08am
Hello,in my opinion never trade renko alone it repaints history but it is excellent for entry while using candlestick charts please check the link below for more info..
http://www.forexfactory.com/showthread.php?t=530467
Your perception dictates your behaviour
  • #104
  • Mar 21, 2015 3:25am Mar 21, 2015 3:25am
Hi

Can you please re post the latest EA, template and where to place the various files after unzipping the .rar into MT4 to activate the system. Would like to try it as I can't be awake for 24 hours of the day and a lot of the entries occur at night for me in Australia.

Thanks for what looks like a simple system.
  • #105
  • Mar 21, 2015 4:50am Mar 21, 2015 4:50am
@ Rob

You are probably referring to the backtests done by Sminage. His broker is using a different lot-system where 1 lot = 10k units instead of 100k of the base currency. Thus you can assume about 10cent commission (and spread) for every 0.1 "lot" trade. While this means the system is less profitable than the backtests suggest, it's still quite good. (I have not done any backtesting, just eyeballed the report and subtracted 10 cent from every win and added 10 cent to every loss)
  • #106
  • Mar 21, 2015 5:17am Mar 21, 2015 5:17am
Thank you for sharing this interesting system and EA. Would it not be a good idea to have a variable SL, so that you could change it e.g. 20 pips. Otherwise if there are several bricks trending before it crosses the MA you could be looking at a very high SL using the last swing point. Just my two cents. Thanks again.
  • #107
  • Mar 21, 2015 7:16am Mar 21, 2015 7:16am
Quoting MathTrader7
Here is Version 1.6 of the EA that implements a Trailing Stop of the N-brick size. You can enable/disable the trailing stop and specify the number of bricks for the trailing stop in the input settings. {file}
For the version of this you are running..

Can you confirm that you are waiting for only 2 consecutive confirming candles and above/below both moving averages?
ie.
if (Close[2]>Open[2]&&Close[1]>Open[1]&&Close[1]>MA21&&Close[1]>MA50) return(buy);
if (Close[2]<Open[2]&&Close[1]<Open[1]&&Close[1]<MA21&&Close[1]<MA50) return(sell);

Just working it out on visual backs...overall, and visually speaking, it is quite the strategy, especially on weeks like last.
Money Can't Buy Happiness. Poverty Can't Buy SHIT! You Choose!
  • #108
  • Edited 7:41am Mar 21, 2015 7:25am | Edited 7:41am
Quoting ChicagoRob
Just an observation at this point, since I'm not yet up and running with the strategy. As mentioned by Magix, are you guys seeing a big enough TP to cover spread and commission? I'm using FXCM, which has a very low spread for eurusd, but trading .1 lots at $1/pip requires 80-cents round-turn commission. Based on a few of the reports I've seen, and factoring in the stop-out trades, this could potentially turn the strategy into a break-even system. Comments and/or suggestions appreciated.
As op has mentioned, to try and eliminate a lot of the chopzone to trade only beginning during Frankie and London, applied most specifically to EURUSD, I would imagine as there can be a lot of decent trades on AUD during the TK session...but I digress...

The 10p bricks seem to remove a lot of the false signals, and even more so when filtered by the moving averages.

Perfect system?

No.

There will still be times during London where there is a limited range and even some of these might be filtered out by just watching the FF Cal. Holidays and bank holidays, you'd prolly want to sit these out, but for the rest, it does seemingly add a little edge to the game of chance.

There will inevitably be a lot of scratch trades to minimal losses with this system, but only true forward testing will confirm if the gains on trend ranges will exceed losses on the tiny traces. The backtest, as far as I am concerned, is still bullshit as not a single person can stand up with a BT report that matches a single live trade week and on Renko, samesies!! DOUBLED!!

Backtests as far as I am concerned are not to measure probability of success nor can be used as a measuring tool for forward testing, they are merely strategy testers...when you write the code and run the Strat Test, you can see if the triggering for entries and exits is as was written or if there are errors in the coding.

Dos Centavos...
Money Can't Buy Happiness. Poverty Can't Buy SHIT! You Choose!
  • #109
  • Mar 21, 2015 7:40am Mar 21, 2015 7:40am
Copy that, Magix. Agree 100%. There's so much more going on with live trading that won't be seen in the tester(slippage, requotes, etc.). Demo is better, but live is the only game in town, if you want to see the good, the bad, and the ugly.
  • #110
  • Mar 21, 2015 8:13am Mar 21, 2015 8:13am
Quoting Magix
{quote} For the version of this you are running.. Can you confirm that you are waiting for only 2 consecutive confirming candles and above/below both moving averages?
I confirm that the EA waits for two consecutive Renko candles with the same color to close.
Trading is the hardest way to make easy money...
  • #111
  • Mar 21, 2015 8:40am Mar 21, 2015 8:40am
Quoting MathTrader7
{quote} I confirm that the EA waits for two consecutive Renko candles with the same color to close.

Lost in the translation...you seem a little standoffish in your reply, not actually confirming nor denying my statement...

This happens a lot. Given Newbie code talk (as op was using in post 1)and the difference of communicating with others where English is not the mother tongue...

OP states:
Quoting shreyash
Entry Criteria: Buy after the brick color changes from red to green and 2 consecutive green bricks have formed and closed. Our entry will be at the i.e. open of the third green brick. Sell after the brick color changes from green to red and 2 consecutive red bricks have formed and closed. Our entry will be at the i.e. open of the third red brick.
Which means, if you are waiting for Close[3]>Open[3], you are waiting 1 extra candle/brick too long for your entry...Open of the 3rd brick, is as stated 2 consecutive candles, not 3...

So, rather than all of the confusion...

Have you written the entries wrong as per the description and charts from the first post?

Either way, it makes no difference in my day, just trying to eliminate some of the confusion that I have been seeing between posts.'

PS, not trying to hang you out to dry, nor am I looking for confrontation. 2 bricks as Op stated, make more sense from a visual standpoint than waiting until close of the 3rd.
Money Can't Buy Happiness. Poverty Can't Buy SHIT! You Choose!
  • #112
  • Mar 21, 2015 8:42am Mar 21, 2015 8:42am
Interesting thread, shreyash. Thank you. An observation, after reading the thread. It would seem that a stop loss is not necessary if trades are closed upon candle/brick color change. Mathtrader7, can you confirm that your EA closes trades upon candle color change?
  • #113
  • Mar 21, 2015 8:58am Mar 21, 2015 8:58am
Quoting EasyRyder
Interesting thread, shreyash. Thank you. An observation, after reading the thread. It would seem that a stop loss is not necessary if trades are closed upon candle/brick color change. Mathtrader7, can you confirm that your EA closes trades upon candle color change?
Given that renko charts can be a little dodgey, and that protection of funds is always Rule #1 for markets...

Having a hard coded SL, can't actually hurt.

Hypothetically...you have an open position, your broker goes offline for a few minutes, or a price spike during a press release...having a secondary closing strategy to try and hammer out your exit is a beneficial thing...

Given that this is automation and that some will actually not be present at their terminals for the entire time the active trade sessions are running, better safe than sorry.

Aside from that...I do agree with your statement...if long and Close[1]<Open[1], and if short and Close[1]>Open[1], these should make for suitable exits.
Money Can't Buy Happiness. Poverty Can't Buy SHIT! You Choose!
  • #114
  • Mar 21, 2015 9:34am Mar 21, 2015 9:34am
Want Renko?

Here you go... Renko Strategy
  • #115
  • Mar 21, 2015 9:37am Mar 21, 2015 9:37am
Quoting 2+2=4ex
Want Renko? Here you go... Renko Strategy
With exception of the Moving Averages as a filter...strategies for entries are the same as Op has written.

2 consecutive closes for triggering.

But yeah...Definitely see yer point.
Money Can't Buy Happiness. Poverty Can't Buy SHIT! You Choose!
  • #116
  • Mar 21, 2015 9:49am Mar 21, 2015 9:49am
Here back test reports are only for knowing how the ea works, not for the results that made , in real market there are gaps slippage, requotes , etc.
  • #117
  • Mar 21, 2015 10:02am Mar 21, 2015 10:02am
Quoting Magix
{quote} Lost in the translation...you seem a little standoffish in your reply, not actually confirming nor denying my statement... This happens a lot. Given Newbie code talk (as op was using in post 1)and the difference of communicating with others where English is not the mother tongue... OP states: {quote} Which means, if you are waiting for Close[3]>Open[3], you are waiting 1 extra candle/brick too long for your entry...Open of the 3rd brick, is as stated 2 consecutive candles, not 3... So, rather than all of the confusion... Have you written...
Sorry if my reply seemed to be a little standoffish. I had no mean to offend you :-) I just wanted to confirm what you asked in your post.

Here is a more detail of the way I coded the EA to open a position:
1. If Candle 1 and Candle 2 are bullish and Candle 3 is bearish and Close[1]>MA21 and Close[1]>MA50, open a BUY position.
1. If Candle 1 and Candle 2 are bearish and Candle 3 is bullish and Close[1]<MA21 and Close[1]<MA50, open a SELL position.

Note: English is not my mother tongue, I just do my best to write correct and meaningful English sentences.

Quoting EasyRyder
Interesting thread, shreyash. Thank you. An observation, after reading the thread. It would seem that a stop loss is not necessary if trades are closed upon candle/brick color change. Mathtrader7, can you confirm that your EA closes trades upon candle color change?
Good observation! You are right! This is also my question.

@Shreyash: If one of the conditions to exit a trade is to watch for an opposite brick to form, then the stop loss is just for the cases that price might jump more than 30 pips (e.g., during a high impact news release), interruption in the internet connection, etc. Am I missing something here?
Trading is the hardest way to make easy money...
  • #118
  • Mar 21, 2015 10:14am Mar 21, 2015 10:14am
Quoting MathTrader7
Sorry if my reply seemed to be a little standoffish. I had no mean to offend you :-) I just wanted to confirm what you asked in your post. Here is a more detail of the way I coded the EA to open a position: 1. If Candle 1 and Candle 2 are bullish and Candle 3 is bearish and Close[1]>MA21 and Close[1]>MA50, open a BUY position. 1. If Candle 1 and Candle 2 are bearish and Candle 3 is bullish and Close[1]<MA21 and Close[1]<MA50, open a SELL position. Note: English is not my mother tongue, I just do my best to write correct and meaningful English sentences....
Awesome, Dude!

Thanks!

Money Can't Buy Happiness. Poverty Can't Buy SHIT! You Choose!
  • #119
  • Mar 21, 2015 10:19am Mar 21, 2015 10:19am
Quoting MathTrader7
{quote} . 3.. Now, remove the EA and re-attach it to the Renko chart. You should see a glad smiley icon ;-)
Hi, I am lost here. How to remove and attach the EA to the chart?
TIA
  • #120
  • Mar 21, 2015 10:27am Mar 21, 2015 10:27am
Quoting MathTrader7
{quote} Sorry if my reply seemed to be a little standoffish. I had no mean to offend you :-) I just wanted to confirm what you asked in your post. Here is a more detail of the way I coded the EA to open a position: 1. If Candle 1 and Candle 2 are bullish and Candle 3 is bearish and Close[1]>MA21 and Close[1]>MA50, open a BUY position. 1. If Candle 1 and Candle 2 are bearish and Candle 3 is bullish and Close[1]<MA21 and Close[1]<MA50, open a SELL position. Note: English is not my mother tongue, I just do my best to write correct and meaningful English...
Would be interesting, through backtesting, to determine if Candle 3 bearish (for long trade) and Candle 3 bullish (for short trade) s a desirable entry condition..

Thank you and Magix for confirming the thought on exit with a reverse candle color. And I agree -- never trade without a protective stop. And keep the protective stop far enough away so that the guys that control the market are not so likely to take out your visible stop.
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