Renko Charts Question

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ACMilan
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Renko Charts Question

Postby ACMilan » 02 May 2013

Hello there

Has anyone had experience with various Renko charts setups?
What Resolution and Box Size combination have you found to be the most reliable for intraday trading, in markets like E-Mini, EuroFx, Crude and Gold?

Thanks in advance

V

shanemcdonald
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Re: Renko Charts Question

Postby shanemcdonald » 02 May 2013

hi
I have tested many settings in my autotrade strategies and found that different settings work best with different instruments.

I start by making the box size equivalent to the point value of the instrument.
e.g. for crude I use .10 , which equals $100 , or a ten cent move in price.
for resolution, I will use 1 min, 5 min, 15, 60 , 120 ,240.
This means that new boxes will take that long to close. So with a 120 min chart, you can watch the one box move up and down for 2 hours without closing.
For accurate moves you may like the 1, 5 or 15 min. For larger swing moves, you may like higher frames.

In my case, a 15 period moving ave crossover works beautifully on a 60 or 120 min renko bar set to .10 box size on crude.

For gold, I change the box size to 1 which represents a $100 move. The same for Russel 2000 TF.

I do not remember the settings for other instruments since I focus mostly on the ones I mentioned.

You do not have to use the point value of the instrument. I found smaller increments to be to noisy for my liking. I like the renko bar for its smoothing effect anyway.

I really like the ability to use different settings in multiple ways with multicharts. I think they did a wonderful job with their renko bars.

The 120 min, .10 setting on crude works great with macd also. I must add that I use wide stops with these higher timeframe settings to allow crude to run. I use 50 and 100 tick stops on these higher resolutions.

60 mins , .10 for day swing trades and 30 min, .10 for tighter swings .
You may like a .05 setting better, on crude that is $50

On gold GC comex, 1 equals $100 and .5 equals $50 and .25 equals $25.

Of course I cannot recommend these settings for any scalping, but these are just some things I have found with renko bars and swing trading.

Box size setting equals the point value of the instrument.
If you use 1 for crude,
then each box will be $1000 in size. .10 equals $100 and .01 equals $10.
1 for Gold, each box is $100
1 for ES , each box is $50
1 for YM , each box is $5
So you can adjust the box size depending on the amount you want each box to represent.
The lower the number, the more accurate movement.
The larger the number, the more smoothing effect and less accurate

I think I have this correct. Henry may explain it better and correct me if I am wrong.

hope it helps
shane

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ACMilan
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Re: Renko Charts Question

Postby ACMilan » 02 May 2013

Hi Shane
Thanks for the detailed reply. Its very appreciated.

I will run some tests.

Have a great week

AC


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