I am thinking of a scenario where I may want to run primary order logic on a larger bar such as a Kase/range bar or a time bar but where I want to use the Renko bar type for execution.
My questions are:
(1) For backtesting, will there be issues with bar alignment?
(2) For real-time trading, would buying on the Renko close generally be accurate?
(3) It also suggest on product page "better renko" works better for backtesting. What are the settings for it? Show wick?
If I wanted a "smaller" bar type for triggering the order then might another choice work better such as a tick bar? I am testing buying on Renko close in the paper and don't see any issues with it. I would think adding 1-2 ticks slippage would be accurate from what I am seeing but I don't have a lot of experience with Renko tbh.
Mix Renko with Kase or Time Question
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tpredictor
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Svetlana MultiCharts
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Re: Mix Renko with Kase or Time Question
Hello tpredictor,
If your signal calculation is based on several different data series, the bars of one data series may close earlier than the bars of another data series.
Renko is a non-standard chart type and the bars are built according to the specific algorithm.
Renko bars are build according to the Close or OHLC prices of the basic resolution. Intermediate results are not taken into account. That’s why in real-time the last bar is shown as an animation. Actual result is displayed only after the bar is closed.
According to Renko properties it is possible that one tick can generate multiple bricks with zero volume. At the same time the strategy calculation engine is the same for all chart types. It means the strategy treats Renko bricks formed from a single tick and regular closed bars the same way. Signals are calculated on the bar close and may generate orders.
You need to handle it in your strategy considering Renko peculiarities.
Generally, we recommend to use Renko mostly for analysis, than for trading.
If you would like to set up Renko so that it became closer to real prices, please try the following settings.
In Format -> Instrument -> Settings, select Chart Type – Renko; Resolution – 1 tick; check Show Real Open, Show Wick and Break on Session boxes. Select Candlestick on the Style tab.
If your signal calculation is based on several different data series, the bars of one data series may close earlier than the bars of another data series.
Renko is a non-standard chart type and the bars are built according to the specific algorithm.
Renko bars are build according to the Close or OHLC prices of the basic resolution. Intermediate results are not taken into account. That’s why in real-time the last bar is shown as an animation. Actual result is displayed only after the bar is closed.
According to Renko properties it is possible that one tick can generate multiple bricks with zero volume. At the same time the strategy calculation engine is the same for all chart types. It means the strategy treats Renko bricks formed from a single tick and regular closed bars the same way. Signals are calculated on the bar close and may generate orders.
You need to handle it in your strategy considering Renko peculiarities.
Generally, we recommend to use Renko mostly for analysis, than for trading.
If you would like to set up Renko so that it became closer to real prices, please try the following settings.
In Format -> Instrument -> Settings, select Chart Type – Renko; Resolution – 1 tick; check Show Real Open, Show Wick and Break on Session boxes. Select Candlestick on the Style tab.