Greetings, I just discovered Renko bars for Forex trading yesterday. I thought they looked so good, and did a backtest just going long on blue and short on red. Perfect system! 1600 pips in just one month. Then I discovered that they are not an actual representation of the market, as the market has wicks. So if we are in long and set an order to go short at the first down bar, we may actually get filled and taken out of our long, when the Renko bricks are still showing long.
Now I see this thread and I see 2 different methods presented: BetterRenko and LogicRenko. Can anyone suggest which one to use in order to trade Forex on MT4? And what things do these methods do that traditional Renko bars do not?
I can say the LogikRenko isn't available for MT4, only NT.
Separate from that, there are two important pieces to get accurate backtest results.
1. You need the wicks.
2. The renko bar cannot plot reversal bricks in the traditional method. Meaning, when a brick changes from green to red, the opening price of the red bar should be at the prior green bars closing price. If the red opening price is at the prior green open price (traditional), the back test engine will likely get fooled and use this price, even thought the market doesn't truly move in that manner.
So, no matter which renko you use for MT4, make sure this is the case if you want accurate results.
Just some food for thought.
The following user says Thank You to mrlogik for this post:
Regarding needing the wicks, do you mean for backtesting, live trading, or both? And where to get them? I assume either the Logic or Better, correct? I've done a search to look for "Renkos with Wicks" but cannot find any.
I can use NT I believe. Would prefer to just use on Demo, any idea where to sign up for a Demo account that provides a NT platform? I use Oanda to trade and only use MT4 for analysis, so I could use NT instead of MT4 for that.
I can, of course, keep looking for these two things. Just wanting to know if anyone has the answers already and could save me some time.
The wick requirement is mainly for backtesting. In real-time a strategy "should" be smart enough to use the true price.
I know you can get the BetterRenko on this forum for free. Just search BetterRenko.
The LogikRenko is not free however. The main difference between the two is the ability to change the display of the bar per your taste, as well as some other features such as auto bricksize determination and tick filtering.
If you want to learn about the LogikRenko, just check out my website. I suggest you try the BetterRenko which is free first to see if it suites your needs.
Thank you again for all the helpful information on this thread. Also, I do appreciate the attempts to keep these threads positive. I just signed up today and got the "intro" email from "Big Mike" and appreciate the statements to keep the threads positive. I got so tired of the negativity.
Any one try out this new bar type LogikUltimateRenko from purelogik?
There's so much discussion on renko bars, I wonder if anyone has tried this one?
I took the plunge, and looks good so far.
Here are some charts of the TF from last Thurs and Fri PST time zone.
He has some details on his web page on how the bars plot.
The charts below represents 100% and 200% reversal percentage.
So just wondering if anyone else has tried these new bars out.
The following user says Thank You to marker for this post: