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Lets Automate a Simple Renko Strategy!

  • #761
  • Apr 4, 2015 1:44pm Apr 4, 2015 1:44pm
Quoting fxtrader08
{quote} the modelling quality on the backtest was only 25%. Would that possibly mean the live forward test won't come out the same way?

It doesn't matter...

Have you ever tested 100% quality and had results forward testing that matched performance on back?

If this actually worked, how many EA zillionaires would there be?

Would anybody actually trade manually?

BACKTESTS ARE BULLSHIT!!

BACKTESTS ON RENKO ARE WORSE!!

I don't know how many times this needs to be said, but I would be willing to bet that there isn't a single day that Verified and his cloner EA come up with positive gains.

Total
Fucking
Waste
of
Time!

(ps, not forgetting that last week, verified couldn't change < to > in an EA...now he's made the holy grail...Are you Fucking Kidding ME?)
Money Can't Buy Happiness. Poverty Can't Buy SHIT! You Choose!
  • #762
  • Apr 4, 2015 1:52pm Apr 4, 2015 1:52pm
i am excited as always, when i can read your invaluable input. did you read the book about polite conversation already ?

have a nice weekend !

Quoting Magix
{quote} It doesn't matter... Have you ever tested 100% quality and had results forward testing that matched performance on back? If this actually worked, how many EA zillionaires would there be? Would anybody actually trade manually? BACKTESTS ARE BULLSHIT!! BACKTESTS ON RENKO ARE WORSE!! I don't know how many times this needs to be said, but I would be willing to bet that there isn't a single day that Verified and his cloner EA come up with positive gains. Total Fucking Waste of Time! (ps, not forgetting that last week, verified couldn't change...
  • #763
  • Apr 4, 2015 1:59pm Apr 4, 2015 1:59pm
Ah, before I forget. Magix, could you please explain why a Renko backtest should be worse than any other backtest ? Do the bricks magixly change every new test cycle ? Are you aware about that as of today approx 40% of all trades are automated ?
  • #764
  • Apr 4, 2015 2:12pm Apr 4, 2015 2:12pm
Quoting verified
Ah, before I forget. Magix, could you please explain why a Renko backtest should be worse than any other backtest ? Do the bricks magixly change every new test cycle ? Are you aware about that as of today approx 40% of all trades are automated ?
Backtests, firstly are an illusion...they aren't an accurate depiction of market reality.

They are Strategy Testers. Testing where and when a signal gets taken so that you can match the logic of automation with a market view.

After that, as has been explained...

RENKO charts do not allow for gaps in market, they simply fill the data with a brick in the direction of the gap.

MEANING, at least once per week at market open, as well as through exceptional news, when Market gaps are produced, in a backtest these are traded as standard signals, where price was not available for purchase or sale.

ERGO, backtests suck, RENKO backtests suck harder.

As for the comment on polite conversation, believe me, son...my previous post was the polite version.
Money Can't Buy Happiness. Poverty Can't Buy SHIT! You Choose!
  • #765
  • Apr 4, 2015 2:15pm Apr 4, 2015 2:15pm
Quoting verified
Ah, before I forget. Magix, could you please explain why a Renko backtest should be worse than any other backtest ? Do the bricks magixly change every new test cycle ? Are you aware about that as of today approx 40% of all trades are automated ?
maybe because of this? http://www.forexfactory.com/showthre...83#post8154783
I'm surpriced how much time everyone here is spending on backtesting the EA without even concedering this major issue...

With renkos you have three choices only:
1/ find reliable renko script (didnt find yet any by myself)
2/ get .hst with history over 6-12 months
3/forwardtest
  • #766
  • Apr 4, 2015 2:16pm Apr 4, 2015 2:16pm
Quoting verified
Are you aware about that as of today approx 40% of all trades are automated ?
How exactly, does this make your backtesting relevant?

How does this apply to your strategy?

Worthless, like every one of your previous and most likely subsequent posts.
Money Can't Buy Happiness. Poverty Can't Buy SHIT! You Choose!
  • #767
  • Apr 4, 2015 2:19pm Apr 4, 2015 2:19pm
Yes, the weekend gaps are filled. I did not mention this in previous postings ? And you might not be able to trade the news because of slippage, and there might be an infrastructure problem, and ... You think we should stop testing at all, everything, no added value ? Interesting. I will think about.

Quoting Magix
{quote} Backtests, firstly are an illusion...they aren't an accurate depiction of market reality. They are Strategy Testers. Testing where and when a signal gets taken so that you can match the logic of automation with a market view. After that, as has been explained... RENKO charts do not allow for gaps in market, they simply fill the data with a brick in the direction of the gap. MEANING, at least once per week at market open, as well as through exceptional news, when Market gaps are produced, in a backtest these are traded as standard signals,...
  • #768
  • Apr 4, 2015 2:44pm Apr 4, 2015 2:44pm
You guys really call me out of the bed to the PC because you decided to post some BS here ?

1) Renko Bricks are NOT repainting if they are generated correctly and aligned to a round number.
2) Weekend gaps can be easily excluded by a programmer when he/she decides to do so.
3) Testing is an important part of any development cycle. Nobody can develop only using forward testing.

4) Think, Think, Think, speak ( write ). If you can't remember this, say nothing.
  • #769
  • Apr 4, 2015 3:15pm Apr 4, 2015 3:15pm
Quoting verified
Ah, before I forget. Magix, could you please explain why a Renko backtest should be worse than any other backtest ? Do the bricks magixly change every new test cycle ? Are you aware about that as of today approx 40% of all trades are automated ?
I would like to congratulate you for writing this EA which seems to be profitable. Whenever you share with us the EA, I would for sure put it on forward test on my VPS for a while. However, it is worth mentioning that the Renko charts have two major problems:

1) Since the price (Bid) is not continuously neither in fixed discrete distances fed to the platform, there might be no quote for the Open and Close price levels of Renko bars in reality. I tried to clear my point by below picture:
Attached Image

2) When a reverse Renko bar forms, the open price of the reverse bar represents a gap equal to the Renko brick size away from the close price of the previous bar, which in reality does not exist.

From your backtest report, I have also noticed that you use a very tight stoploss (1.2 pips? Am I right?) which is very likely to be hit in the reality. I know that you are scalping, but such small stoploss usually does not work in the real world.

Anyway, good job!
Trading is the hardest way to make easy money...
  • #770
  • Apr 4, 2015 3:18pm Apr 4, 2015 3:18pm
Mechanical Forex

Modelling Quality in Metatrader 4 : An Almost Meaningless Number
December 11th, 2010
Certainly one of the first things newbies are told to look at when evaluating the results of Metatrader 4 backtests is a number called “modelling quality” which is a measurement Metaquotes came up with to attempt to measure the quality of the simulations a trading system is subjected to. While you start your journey in automated trading using MT4 you will hear things such as “only 90% modelling quality works” or “90% quality is useless, you need 99% quality”. But what is this modelling quality number, how is it calculated and what validity does it hold against the accuracy of the simulations being done ? Through the following paragraphs I will explain to you what modelling quality is, why by itself it is a useless number and why understanding about how a trading system works and the inherent limitations of simulations is FUNDAMENTAL to understand when simulations are accurate and when they are not.
When you run a simulation in Metatrader 4, the program gives you a number called modelling quality. This number was invented by the Metaquotes people to measure the percentage of lower time frames which are taken into account when evaluating a strategy. Their idea was simply that the more lower time frames you take, the “finer the grain” of your simulations and the better their quality. A higher modelling quality means that the system was simulated under a “higher resolution” data close to tick data. The modelin quality number is calculated according to the following formula (as detailed on this link) :
ModellingQuality =
((0.25*(StartGen-StartBar) +
0.5 *(StartGenM1-StartGen) +
0.9 *(HistoryTotal-StartGenM1)) / (HistoryTotal-StartBar))*100%;
-
As you see the number only takes into account the “completeness” of the time frames as used by the Metatrader 4 platform. This means that using 1 minute data gives you a 90% modelling quality and using tick data gives you a 99% modelling quality while on the 1 minute time frame (since there is no lower time frame) you can get 20% modelling quality at a maximum. Does this mean that a system with n/a modelling quality gives inaccurate results while a 99% modelling quality gives accurate results ? No.
You need to understand here that depending on the characteristics of your strategy certain things need to be taken into account to have accurate simulations and this may need just very little modelling complexity. For example a system that trades exclusively on daily time frame EOD (end of day) data without any SL, TL, TP or pending orders will be able to give accurate simulations on a simple Control Points method with n/a modelling quality as the system only needs a very limited amount of data to be simulated successfully (only the Open/High/Low/Close data at the end of each day). This shows that having a low modelling quality does not imply that the simulations of a system are inaccurate, it merely points out that the simulations where carried out using less data from the lower time frames. How accurate simulations are without this data depends on the very nature of the system.
The same thing applies to the other side. Having a 99% modelling quality does NOT imply that the system is simulated accurately, as I have pointed out on several posts during the past few weeks you can create low time frame systems that give inaccurate simulations because they need appropriate distinctions between Bid/Ask tick feeds to give reliable estimations of past performance. So having a 99% modelling quality does NOT mean that your simulations are accurate, as a matter of fact you can develop systems that give extremely inaccurate simulations with this seemingly extremely high modelling quality simply because the MT4 platform has some simulation limitations that are important for adequate consideration about a system’s performance.
By itself, modelling quality therefore tells you NOTHING about whether or not the simulations of a system are or aren’t accurate. You can have systems with accurate simulations that give an n/a modelling quality and you can have extremely inaccurate simulations with a 99% modelling quality. What does modelling quality depend on then ? Real modelling quality depends on the characteristics of the system being tested and whether or not the system is able to adequately address the limitations of the testing software being used. A system that is adequately programmed and designed to take into account the limitations of Control Point simulations will give reliable results on very low modelling quality while a system built without taking into account the inherent limitations of MT4 will be able to give very unrealistic results EVEN on 99% modelling quality.
To sum it up, you simply need to understand what you are trading, the system you are simulating and make sure the data you are using for simulations and the simulation method/program used correctly addresses the needs of your strategy to arrive at accurate past historical performance. Blindly relying on numbers such as the MT4 “modelling quality” is a sure recipe for failure, as always you need to DEEPLY understand the system you are trading, simulations and their limitations in order to know when something is accurate and when it is not.
If you would like to learn more about my work and how you too can develop systems with reliable simulations (even very computationally cheap ones) please consider joining Asirikuy.com, a website filled with educational videos, trading systems, development and a sound, honest and transparent approach to automated trading in general . I hope you enjoyed this article ! :o)
  • #771
  • Apr 4, 2015 3:25pm Apr 4, 2015 3:25pm
i have tried to download the renko mod..but the promt says not available....would you please post it again
  • #772
  • Apr 4, 2015 4:09pm Apr 4, 2015 4:09pm
Hi,
Is there a way to use Strategy tester for the Renko EA for MQ4.
To put it in another way, there should be EA out there by now (for this strategy) that can draw Renko Bars like an indicator on a normal M1 Chart .. and still do the trading part as well.
I hope I am not asking too much. I just want an open source EA that does trading on Renko Bars and should be test-able in same platform.
  • #773
  • Apr 4, 2015 4:11pm Apr 4, 2015 4:11pm
Please guys....We can be agreed about one thing ; Magix and verified are NOT agree...So,let's move on....
  • #774
  • Apr 4, 2015 4:24pm Apr 4, 2015 4:24pm
I think i got the best setting of latest MathTrader7 EA after play around with it...but the problem is, the brick in strategy tester is different from original renko chart in using offlinetesthelper script..I means like missing brick and position of the brick...
I have no idea regarding on this issues..But nevermind since it's just a backtest, at least we have an idea how to get the thing work right...??

will go live on next trading week and will see what happened on real market...
stay tune guys, dont waste our time with "bugs" that give nothing to this family... LOL...!!
  • #775
  • Apr 4, 2015 4:26pm Apr 4, 2015 4:26pm
Quoting pannet1
Hi, Is there a way to use Strategy tester for the Renko EA for MQ4. To put it in another way, there should be EA out there by now (for this strategy) that can draw Renko Bars like an indicator on a normal M1 Chart .. and still do the trading part as well. I hope I am not asking too much. I just want an open source EA that does trading on Renko Bars and should be test-able in same platform.
There is an EA out there, it is the Math Trader 7 EA. It is not open source but free and you can test it on MT4 as briefly documented in this tread.
  • #776
  • Apr 4, 2015 9:24pm Apr 4, 2015 9:24pm
Quoting MathTrader7
{quote} Hi Liu, I checked the two indicators, RenkoMaker_Confirm and Signal. The Signal indicator is just a moving average and changes color at extremums, so it repaints one candle, that is, we have to wait for the second changed color candle to know that an extremum formed. This is one thing we need to consider first. My second observation, which is pure from programming technical point of view, is that, the RenkoMaker_Confirm indicator only uses one indicator buffer that represents cross down arrow value. In other worlds, it is not possible to...
Hi MathTrader7,

Thanks for your reply,I try to use ex4 to mql software but only can change "SIGNAL",other can't..maybe version is new...
Still trying RENKOMAKER PRO...

Best Regard

Liu
Attached Image
Attached File(s)
File Type: rar ex4+to+mq4+4.0.509.5+freeware.rar   1.3 MB | 2,396 downloads
File Type: mq4 Signal~.mq4   5 KB | 751 downloads
  • #777
  • Apr 5, 2015 1:15am Apr 5, 2015 1:15am
Quoting verified
{quote} There is an EA out there, it is the Math Trader 7 EA. It is not open source but free and you can test it on MT4 as briefly documented in this tread.
Hi verified,
Many thanks for your reply. I want the open source version of Math Trader 7 EA, even a primitive one is OK. I want to code and test my own Renko strategy.

Hi Math Trader,
Can you please send me the code part which makes Renko Strategies to work on MT4 tester.
  • #778
  • Edited 6:43am Apr 5, 2015 6:22am | Edited 6:43am
i use OSMA for hidden divergence , "trendChannel" and autopivot :
Attached Image (click to enlarge)
Click to Enlarge Name: EUR JPY.png Size: 58 KB
Attached File(s)
File Type: ex4 TrendChannel.ex4   11 KB | 558 downloads
File Type: mq4 Auto-Pivot_Plotter_Weekly_V2__1.mq4   11 KB | 545 downloads
  • #779
  • Apr 5, 2015 6:33am Apr 5, 2015 6:33am
Here is Version 2.90 of the EA that checks Candle 1 (see Post 624) to be completely over the two moving averages to open a position for better filtering signals appear in ranging time of the market. The option can be enabled/disabled in the input settings (Check Candle 1 To Be Over MA?).
Attached File(s)
File Type: ex4 MathTrader7_RenkoEA.ex4   143 KB | 1,326 downloads
Trading is the hardest way to make easy money...
  • #780
  • Apr 5, 2015 6:35am Apr 5, 2015 6:35am
Quoting dan78
i use OSMA for hidden divergence , "trendChannel" and autopivot : {file} {file} {image}
For sake of completeness, please explain the entry/exit logic and attach OSMA indicator. Thanks!
Trading is the hardest way to make easy money...
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