Actual Renko - page 3
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Optimal Renko Box Size
I use about 70% of the Average Daily range. I have chosen a fixed 75 pips based on visual comparisons with various box sizes. I also focus on EURUSD because of the low spread offerings and decent volatility.
Renko on chart
Is thier any renko that shows on chart and not indicator window
Hi,
has anyone ever tried to make renko charts (candles that are based on number of pips in one direction: candles close after e.g. 20 pips up or down, and don't close after a certain period of time e.g. 15min)? I have found a custom indicator that displays a renko indicator at the bottom of the chart, but I need the actual candles in my chart to be "renko candles".
thxI use Renko charts on another platform, it is great tool.
I use Renko charts on another platform, it is great tool.
How do you trade using that renko Kenny?
RenkoFx System
I prefer to trade using pure price movement and I use RENKO analysis to determine my entry and stop levels. It is very simple concept based on price threshold levels. Essentially, I trade the EURUSD with a trailing stop value of 150 pips in steps of 75 pips. Price would have to retrace max 150 pips to reverse the signal on my 75 pip RENKO box. The advantage of RENKO analysis is that the variable of time on the charting axis is removed from the system. The renko boxes will not repaint or flicker after the standard candle timeframe has closed but the price must exceed the box value for a new box to appear.
I have attached the previously posted RenkoFX indicator and a screen shot of the Renko EURUSD since Feb 08. In just the the last major move alone, we see a 75 pip RENKO box has captured over 1000 pips with no ‘noise’.
Choppy markets can lose money using the RENKO box method depending on the box size chosen. However, a market that is in a price stagnation or standstill for an extended period will not give false signals under RENKO analysis. This is the major distinction of the RENKO indicator compared to any moving average indicator that illustrates price momentum.
A quick visual inspection of the applied RenkoFX indicator will reveal the estimated profitability of your chosen box size in your market. The net profit of each directional color sequence can be calculated by counting the number of consecutive boxes in a continuous series -minus three boxes. A three box color retracement will be a break-even scenario. A two box retracement will be a loss of one box value in pips. A one-box retracement will be a loss of two box values in pips.
Since Feb 2008 when the EURUSD was 1.4493, the attached RenkoFX indicator screen shot has a rough approximate winning value of 25 boxes x 75 pips per box = 1875 pips
Important Note: The indicator must be placed on 1minute charts in the Metatrader platform. Larger time frames will offer longer dynamic signals since the Renko box will not truly ‘close’ in a speedy manner.
Feedback appreciated. Thanks
Can anyone advise on how to reference this using iCustom
I get this error written to the journal
RENKO_2 EURUSD,H1: unknown subwindow number -1 for ObjectCreate function
I'm using this as the reference
iCustom(NULL, 0, "RENKO_2",20,1,1);
That looks more like an error with the Renko indicator. Try just putting that on a chart and look at the log. I'm guessing you'll see the same error.
Lux
Renko scripts
Was kinda messing around with C5 scalping from another forum and found these Renko scripts there, seem to work pretty well but seems have to refresh the chart once awhile, to use put it on any timeframe chart on the top of chart it will tell you which off line chart to open so open that chart and use whatever template or indi's you desire.
or do your own
See my post with binary tick writer. You could prob use this or modify it to create tick based range/renko etc bars for mt4. I use it for this purpose but I am not using mt4 as MB do not have a reliable version running yet. I poll the files every 1/2 sec to create my bars and it all works fine. So you are halfway there. Write a poller and create your own barfile that is as close to perfect as you can be. Run your indicators over that lot and see what you get. My advice is to keep it very simple and just use good money management. I let my bars have gaps. Do not fill them in with data that never happened. This is not just my opinion I have tested this on large amounts of futures tick data. I also run two of these EAs, renamed of course, to split the task of writing the data over two threads, five files for each one. I do not think much of the script based alternatives as they are using one minute data to build the bars on startup.
Cheers
believe
Oh don't get me started!
Simple is good. Range bars are not popular simply because nobody has access to them. I was using these in 1988, long before Mr Brazillian range bars claimed to invent them. Now it is 2009 and how many apps support them? Very few! Gee why is that? I could start a thread on that topic. Anyway enough ranting.
I can tell you that it is easier to find something that works when you dump the time based sample(bars). Don't flame me over this ok. Of course these things are not the grail but they can be a simple and effective noise filter.
As an aside there was a collection of papers by esteemed math heads, one being Mandelbrot, on the random, or not, properties of markets. As I recall he concluded that having time on the x axis was what was screwing everything up and it was up to the reader to pursue the possibilities. Sorry for my vague references but it was 8 years ago when I read the book. I will have to find it again. Maybe he is reading this and can throw his hat into the ring.
Renko bars give a false impression since they only fill the bar in arrears, they appear to be doing better than they are if you do not make allowances for that. I use a bar that is slightly different from Renko and what you see is what you get. The open of the bar is your entry and it is what your indicators etc should be based on. The close has no significance since the bars are based on movement in price vs movement in time. Since you know the size of the bar you can place your orders way ahead of time. My bars are also in the 40 to 70 pip size. Slippage is not an issue. I use my own type of bar that is similar to Renko. I only have one minute data from 2001 to test but that is good enough to get a reasonable assessment of risk.