Renko Flaw

Questions about MultiCharts .NET and user contributed studies.
Japhro
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Renko Flaw

Postby Japhro » 15 Jul 2014

Hello,
I notice that in MC (I have the .Net latest version) that Renko bars are not only calculated by range but have a time component. This is a very serious flaw imo because Renko is not time dependent, the new bar is drawn only when the range that is set is exceeded in either direction.

The way it works in MC seems to be that if the range is exceeded but the time value is not exceeded, it will stretch the bar instead of creating new bars, until the time component (ie 15min interval) is complete, then it draws the relevant number of bars to backfill.

When using a strategy or indicator based on the bar counts or anything like PSAR etc, this ruins the strategy due the the improper creation of bars.

It would be very helpful if you could fix this flaw.
With thanks -
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Japhro
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Re: Renko Flaw

Postby Japhro » 15 Jul 2014

This is a better view of the problem. I have tried Tick data instead of time based also, but it changes the other indicators and studies' actions, which it shouldn't.
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Henry MultiСharts
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Re: Renko Flaw

Postby Henry MultiСharts » 15 Jul 2014

Hello Japhro,

It is expected behavior. I would suggest you to use 1 tick resolution for Renko charts.

Please also see the following MC Wiki articles:
https://www.multicharts.com/trading-soft ... .php/Renko
https://www.multicharts.com/trading-soft ... hart_Types
https://www.multicharts.com/trading-soft ... ve_Trading

Japhro
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Re: Renko Flaw

Postby Japhro » 15 Jul 2014

Henry MultiСharts wrote:Hello Japhro,

It is expected behavior. I would suggest you to use 1 tick resolution for Renko charts.

Please also see the following MC Wiki articles:
https://www.multicharts.com/trading-software/index.php/Renko
https://www.multicharts.com/trading-software/index.php/Intra-Bar_Order_Generation,_Bar_Magnifier_on_Non-Standard_Chart_Types
https://www.multicharts.com/trading-software/index.php/Backtesting_vs_Live_Trading


This appears to be an incomplete solution, due to the fact that indicators appear to read the time or tick value rather than the bar counts.

It would be helpful to know how this is handled in the software, because on the same Renko range the indicators are very different between a tick and 1min chart, and they should be reading the bar count and not the time or tick value

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Dave Masalov
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Re: Renko Flaw

Postby Dave Masalov » 16 Jul 2014

Hello Japhro,

indicators appear to read the time or tick value rather than the bar counts
they should be reading the bar count and not the time or tick value
Could you be more precise? I am not sure I got you right.

the indicators are very different between a tick and 1min chart
This is absolutely normal since tick and minute data are provided separately, sometimes from different data servers and may slightly differ even if you use the same data provider. Different data results in different indicator calculation results.


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