Just wondering if many people use them?

They look good in hindsight, but when the market is moving fast, I've seen the plot pretty quickly on the NQ.

Seems like it's not realistic to trade using it.


Thanks

If they moving too fast use bigger brick size.

They do well in giving a summary of (temporary) direction in the market, but for execution and 'reading' price, I prefer more granularity.

They help to cut out some of the noise in the market and they work best as an indicator / macro view of what is going on.
But execution of orders coming from these will surprise you and often times horrify you because by hiding the noise you are often times fooled as to where the price is actually at.

The worst use case of any type of exotic bar chart is in back testing. There are more Backtesting millionaires using exotic bar types that any other type of trading technique, style, etc. Most simulators do not handle exotic bar type well and overstate performance by a 7 digit magnitude. So be warned, if you are not hip to this already...

Happy Trading!

Ian

Hello, i was wondering if anybody was using logik ultimate renko bars or rjays renko spectrum bars in their trading,if so could you show me some chart examples of the emini s&p or the nasdaq. thank you.

Randal B 

Hello, i was wondering if anybody was using logik ultimate renko bars or rjays renko spectrum bars in their trading,if so could you show me some chart examples of the emini s&p or the nasdaq. thank you.

ya i used Ultimate on NT8 dont have any pix but it was muuuuuuch better than the regular renko that nt8 offers. you can adjust the trend reversal and offset where the NT8 renko only lets you adjust 1 or 2 of them. so ultimate is much more versital.

iantg 

The worst use case of any type of exotic bar chart is in back testing. There are more Backtesting millionaires using exotic bar types that any other type of trading technique, style, etc. Most simulators do not handle exotic bar type well and overstate performance by a 7 digit magnitude. So be warned, if you are not hip to this already...

I hear this a lot, and as such have never used them myself, which is a shame as I like the theory of some exotic bars.

I think the only way to safely use exotic bar types would be to use them as indicators to cut out the noise but still execute trades on more granular prices. So for both testing and live trading you would know full well what the prices where at any point in time, but the exotic bar type could be a secondary data point like an indicator. The failure of back-testing comes when you use the exotic bar type as your primary data series. In this case it cuts the noise so much that it only sees green when you are really red and vice versa. Simple back-testers fail miserably if you set this as your primary data series. But if you put this on a secondary data series just for analysis... You might be able to work with it.

Ian

SMCJB 

I hear this a lot, and as such have never used them myself, which is a shame as I like the theory of some exotic bars.

renko give you a better view of market structure i.e. bird eye view vs jungle view

I am glad to read this thread and wonder what kind of Renko you guys use. I use unirenko,but there are other types like better renko, median, etc.

I also want to thank @monpere for creating and posting here.

There is no magic using them , just no noise.

Just my 0.02