Mr.Nims, Renko Ashi Scalping System. - page 277
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Congrats for your success, really.
Is wonderfull to see people who don't have great resources, how they achieve success. And no happy with that, now you help other people, awesome
For my part, I have made my own semi-automatic system, because I don't have actually much time, and I cant left my job hehe. Not bad results, but im also working on a 100% auto system.
We all know tests on renko are not as real, that's why I have programmed my own personalized renko bars, and with that, bars open and close correctly on tests, not like the old renko tests. I think I will insist until it work on real time hehe.
Hi Offs,
I'll come to the auto trading part on renko some other day, for now manual trading itself is too overwhelming for me to think of that. As the saying goes "If somethings working well , why fix it!"
Best,
Nick
why you ddin't answer me ???
Hi Ahmed,
I think i missed your question, it's also answered in previous posts.
15 pips all fx pairs and 25 on ej gj
Best,
Nick
Hello fellow traders,
First post here. I have been involved with the markets for quite some time now,and still searching for the tools that suit me. I have been trying to use the renko bars, without success. I guess never really had the discipline to understand them.
I want to lay down few thoughts and one question.
When we compare the normal candle sticks with renko, we get different visual information. With the candles we can get much more information than from renkos, but this information maybe not be right one. Most of the traders are using systems that incorporate a basket of indicators. The price action traders will state that using indicators will prohibit traders to trade more accurately. I will say: Yes and No. It depends of the psychology and the brain properties of each individual trader.
I personally am searching for the set up of indicators incorporated with price action and market structure to protect me not to enter a trade prematurely. Unfortunately haven't found the setup or haven't master one e.i. learning it's strength and weaknesses.
For the first time in the past two weeks I am staying put with one system. And I saw it's pitfalls trying to trade it real time. I am trading off 4H charts, very often the markets move so fast that the indicators give me logically with their lag my trigger too late, and as of late the markets reverse and I book big loss. Yes there is MM but pips wise, I do not like it.
What I like with the renkos is that there is less noise so the indicators are more accurate, yet the absence of real candles that would give me information if at a curtain level there is strong resistance and possible reversal, I recognize renkos' weakness.
I downloaded the system from the first post. Of course I played with all the indicators that retailer can and found already on the net and they all more or less showed the same thing.
I have tried to go over the thread but honestly I could not. 277 pages was a bit too much and I could not find the information I need to know.
It is about the stop loss. With the normal candle sticks one can find the obvious support or resistance levels whereby renkos as we have reduced noise due to renkos' characteristics I have hard time to set my stop loss, especially if the there is ongoing trend and I have no price structure.
Ok, I can have normal chart on the side to see the picture, but I do not want to get so complicated with the setup. yes, again we all watch the past data and find the beautiful spots where we could have entered the trend and made hundreds of pips. Well it does not work this way in real time, at least that is what I understood for my self, even with the candle sticks charts.
In the system's manual was written that I should place my stop loss on the other side of the moving average's tunnel. If we want to use a rule for example if indicator X turns from green to red we close the trade. But if one looks at the renkos one does not have much reason to use such rules. Why? Well one can chose simple rule. If we use 10 or 15 pips renko as mentioned for the U/J pair, exit of trade can be one renko that moves against us. This rule is ok because we minimize the potential loss with 10 or 15 pips plus the spread. yet this one renko can be just a noise and the trend will continue to move with the prevailing trend. Ok then we move to two renkos, well then we get the same story. We book 10 or 30 pips loss, yet this could have been bigger counter trend noise. Then we can move to three renkos and we have the same story. So in each 1, 2 or 3 renko move new or stronger move can be on it's way or not. This we could not know, just after we stood and watched what the market does and did.
Let me make your heads even bigger if I did not manage to do until now. We watch the past data on the charts, as we know there is a little repaint happening after seen real time chart and reloading the chart latter (i am using the commercial version). I am fine with that, but based on the flawed past data we make up our rules rules. Again, as we know if we have 10 pips brick, one brick is displayed after ten pips move, but we do not see the rest of the market move. So if we have decided that two bricks moving against us is fine which would represent 20 pips i put our stop loss at 25 pips or 20 pips. Yet within the displayed two bricks move the actual move could have been 29 pips and plus the spread......you get the picture.
So all in all, where do you put your stop loss!?????????????????
It is easy to do when we catch reversal. We can put at the highs or the lows. This is pretty straight forward, but if the move is under way, what do we do?
thanks for the time you have taken, reading my post
Hi hektorian,
It's nice to find someone who's having a stop-loss issue on renko charting, because most of use don't have a problem with entry and stop-loss but rather with target, reason behind this is because entry is a "present condition" and stop-loss area could be determined with a "past condition", but for target it's a "future condition" that can either be decided when the setup changes or predicted.
Having said that.
The reversal conditions of renko that you describe are actually wrong. A reversal candle for example a 10 pip or 15 pip renko, isn't a candle that reversed 10 pip or 15 pip backwards, that would probably be a case on the "Parallel renko", but the normal renko chart, reversal of a 10pip or 15pip chart is twice the size, so a reverse candle will be 20pips or 30pips for one candle reversal.
For two candle reversal for 10pip and 15pip charts would be 20pips+10pips = 30 pips and 30pips+15pips=45pips, This is how a reversal candle on normal renko works.
Answering your quessy, Stoploss doesn't necessarily need to be at one or two candles back or on the other side of the ma channel, it could also be placed at the previous renko Support or resistance area's,
Finally, It still takes a lot of understanding for long-time time-frame traders to see how renko is more beneficial, because there is no time involved, only price. Your four hour chart is just showing you the movement "cut" into 4 hour slices. Say a movement was flat for 3hours and 55 minutes, but then in 10 minutes it made a 100 pips move, 50pips in 5 minutes and 50pips in another 5 minutes.
Now your 4 hour chart will show you a 50 pip big candle bull or bear and another 50pip big candle bull or bear. You'd think that hey we have a big move on the 4hour chart, but it could just be a news break event with a big move for 10 minutes.
A second scenario which most people commonly use to base trades that are below the 4hour charts, like 1h, m15, 5m is using the days high and low as the next days resistance and support level. lets say the renko chart went uptrend yesterday and the market stopped moving up any further and went into a range bound from the US session in a 30 pips range all the way to next days London sessions, your time frame chart for example the 5mins would show you soo much information (that's crap) and the hindsight renko chart would probably show you one reversal candle (15pip chart), that wouldn't be exactly a trend change on renko. The next day in the London session the trend went back in direction and headed up, it just meant its retraced and back into the trend, whereas the time-frame guys would believe the market is going down looking at all the 5min slices from US to London, with the stoploss at the yesterdays high and targets at the yesterdays low.
The whole point is, it takes long term time-frame users to get adjusted to using and understanding renko charts, just like it takes a person using another language to learn another one, because they have used a language for so long.
Best,
Nick
Hi Folks,
Here is the Renko Ashi 2 System in Build 600 plus compatible mode.
Just unzip the contents straight to your metatrader 4 build 600+ and restart the mt4.
Everything should work out of box.
Best,
Nick
Hi Nick,
thanks for your input. There some other issues but I will try to find alone the answers to them.
One more thing.
I went through your xls. files and I have one question about the RR ratio. If I am not wrong the RR is negative,right? If we go for just 40 pips gain per trade, there is no other target than the 40 pips, and if my stop loss is based on some support or resistance which very often will be bigger then 40 pips, then it means that we will risk more than what we are going to win, isn't it? If I have calculated right in my head, a risk of 50 or 60 pips would mean, that I am risking around 10% of my equity, again I did in big the calculations. Isn't this very dangerous if the system falls in streak of 4 or 5 losses?
thanks again!!!!
I think we can take the analysis to a level which strangles us.
Myself, I am not too bright regarding the permutations and extrapolations and besides, I am very old and senile.
So...... what I do is...... I configure a few charts on my screen and watch them and pay attention to a couple indicators and ensure that my entries are valid according to what I see....
In this thread are tons of indicators that can be used to make a most vivid presentation.
The xls spreadsheet from a few weeks ago is great stuff to get a person to see that he can make a nice bundle trading renko....., however, to limit yourself to the numbers on there is self defeating.
I have a sneaky suspicion that Nick is shooting for 500 pips each day and some days he works a little harder.., further, when he gets aggressive he is using a lot more of his account than shown on the spreadsheet.
The things is...... get the charts up configured so they 'speak' to you, trade them on a demo until you are competely confident and then go for it.
Make a pic of each entry so you can see what you did right or wrong.... marking up charts is great way to learn.
Do not risk all of your capital when you start.... keep 2/3 in your pocket in case a rainy day occurs. We can all make mistakes or get too greedy. Besides, once you catch on to this technique you can make a ton of money from a very small account.
If analysis was easy with trading, it would all be done by robots..... analysis is something to do on the weekend, looking back at your trades.
Just my thoughts
daveM
Hectorian you are missing the time in Renko bricks? Renko was made to get rid of the time. Time is quantitative, not qualitative.
The last question answer would be increase the equity and make small SL and TP. When you have $10.000 equity and trade on micro account even 70 pips SL is a peanut. Problem is that traders trade with small account and expect big wins. I put 2 bricks SL that means if I have 20 pips bricks I put 40 pips SL and watch the ride. With Renko trading you need to watch the screen not like with daily charts trading to look the chart once a day (5pm EST).
Hermes