renko chart

[admin]

Hey,

I have been trading a simple Renko strategy for quiet some time now and it yields some very decent profits.
Now I want to automate this strategy into an EA so that we dont have to wait for Renko bars to paint for long hours.

The whole concept is about keeping the trading strategy simple yet Accurate & Profitable!

Ok guys so lets first see how to build a Renko chart.

How to Install renko EA:
1. Open 1Min Chart
2. Attach your Renko EA (i.e. Renko_Mod.mq4)
3. Settings for this EA are :

RenkoBoxSize=10.0
RenkoBoxOffset=0
RenkoTimeFrame=2
ShowWicks=true
EmulateOnLineChart=true
BuildChartsWhenMarketOffline=true
CalculateBestBoxSize=false
ATRPeriod=24
ATRTimeFrame=60
UseATRMA=true
MAMethod=0
MAPeriod=120
Click OK and DONE.

4. Open Offline Chart : File > Open Offline > Select EURUSD M2 (Double Click to Open this Chart)
5. Your Renko Chart is now Active.

What we are doing here is that we are getting the Renko_mod.mq4 EA to generate a renko chart in offline mode but updates on live basis.

Now on the current chart you can see renko bricks of 10 pips each.

Now add EMA 50 and EMA 21 indicators to your chart and we are done!

The Rules of the strategy are very simple!

Entry Criteria:

Buy after the brick color changes from red to green and 2 consecutive green bricks have formed and closed.
Our entry will be at the i.e. open of the third green brick.

Sell after the brick color changes from green to red and 2 consecutive red bricks have formed and closed.
Our entry will be at the i.e. open of the third red brick.

Filter:

As a filter we use 21EMA and 50EMA.
If the prices are above the EMAs we take only buy trades.
If the prices are below the EMAs we take only sell trades.

Exit Criteria:

1.When a brick of the opposite color is formed.
OR
2. Trail the trade as more number of bricks are formed until your trailing stop loss takes you out!.

Stop loss:

There are 2 concepts -
1. Last significant hi or low.
2. Hi or low of the last green or red color brick -
i.e. for a buy trade we will use the low of the last red brick from where the price turned.
for a sell trade we will use the high of the last green brick from where the price turned.

Additionally, you can use a trailing Sl of 20-30 pips to safe guard your profits.
You can choose one that best suits your style of trading.


If you are using trailing stop loss don't keep target so that we can let our profits run during times of long trends.

Now you chart should look something like this!

Sell Setup Example :