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APPLYING RENKO ON NORMAL CANDLES

Limitations on Renko traditional charts:

  • Trading view free/pro users cant access renko charts for intraday
  • It shows wrong back testing results. When any strategy is applied on Renko charts/Heikin ashi  it would show best profit curve but that’s unreal because renko and heikin ashi have so much of variation from real market price
  • It actually has chance to mislead people that renko is best always

We are going to setup an alternative renko strategy which can be applied on normal candlestick charts.

Advantages of Renko strategy with normal candles over traditional:

  • The price is related to real markets and logic is related to renko block building this strategy will reduce slippages when applied on real markets
  • Trading view free users /pro users who cannot access renko charts can use this to apply renko on normal charts

Renko charts are designed to filter out minor price movements to make it easier for traders to focus on important trends and price action. This makes trends much easier to spot, Because those small fluctuations are removed, price trends may be easier to spot, and that feature makes Renko charts the preferred price chart for some traders.

A Renko chart is constructed from a series of bricks whose creation is determined by fluctuations in price. When a price rises, an up brick is placed on the chart and, with drop of prices a down brick is added.

We will demonstrate you on how you can find one simple renko strategy and automate its trades

STEP 1: Download the pinsecript algo here

STEP 2: Open desired chart  in trading view with normal candlestick ,select desired timeframe of the chart. Go to pine editor section , remove the default code , paste the downloaded code,save the file and add to chart.

STEP 3: Once strategy is applied on chart, click on settings to optimize parameters for your own trading.

  • Source: it can be a source factor of price in which strategy is computed ex: close,open,hl2,etc
  • Brick sizing method : Renko is formed by bricks here there are 3 ways to calculate brick size, Fixed brick, ATR,% of close price
  • % of price/Fixed price amount/% of ATR: Use this to specify % of brick size as input/fixed brick size / %of atr used for brick size
  • ATR time frame: ATR is an Average true range of past bars ,use this to select time frame on which atr is calculated
  • ATR length: Specify ATR length if Brick type is ATR
  • Intraday trade session: Entry trades will be taken only on this session
  • EXIT SESSION: Trades will be squared off in this timeframe

STEP 4: Settings Alerts for Auto Trading with APIBridge. Just paste {{strategy.order.comment}} in alert window. That’s all, you are ready to trade!

Do you want coding help to deploy your own strategy for live trading? Check our coding assistance.