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Thread: New System Test: RENKO 7

  1. #1
    I am starting this thread for 2 reasons:

    1) To document and test a new system.
    2) To train myself to trade sensibly and effectively

    Following 10 years and 10,000 hours of study, my trading is still erratic, undisciplined, and very frankly, uncontrollable. Obviously knowledge will never make one a trader. I blow accounts faster than Hillary deletes classified emails. As Mark Douglas points out in his book Trading in the Zone, I've personally refused to accept accountability for my losses. I over commerce, payback trade, marry transactions, add to losing positions, fearfully ending winning transactions, and generally speaking, engage is every type of destructive trading behavior you could envision.

    Renko charts have always appealed to me. In my opinion, renko simplifies price action, and at the very least is considerably easier on the eyes. But, I've just about gone off the deep end in trying to get the renko charts to function properly. The most important issue appears to be that after awhile the bricks do not upgrade. For now, I seem to have everything working well with Pepperstone.

    This system may seem infantile to most traders, which is a good thing, because that's just what I need. I need a system that is like changing the diapers of an infant. When I see the poop (or odor ), I take action. I get the diaper. I put the diaper , secure the straps, wash my hands, and I'm done with that. Trading should be the same. I see the setup, I do it and initiate the trade, set the SL's and TP's, wash my mind in the commerce, and be done with that. Enough said.

    NOTE: ANYONE is welcome to post here. All questions, remarks, or constructive criticisms are all welcome. Please be more respectful. Anyone that want to post a chart, please do. It would be fine if you used the same template but whatever floats your boat is fine.

    I am looking for two set ups:

    1)Double tops
    2)Divergence (classic or concealed )

    There are only two items on the charts:

    1) Renko bricks - 7 pips every single (no more wicks)
    2) RSI with period 9

    https://www.forexforum.co.za/attachm...3686281020.mq4
    https://www.forexforum.co.za/attachm...4580733978.tpl

    This really is a private journey of accountability. I am trying to create the plogical framework to SEE IT, SET IT, and LET IT GO.

    Thank you in advance for any gifts and best of trading whatsoever.

  2. #2
    THE DOUBLE TOP

    Entry Rule: After the second top has printed, we wait patiently for one alteration confirmation brick to publish, then input both positions.

    Here is your first commerce taken (was clearly one pip late in entering )

    NOTE: This does not technically fit the definition of divergence however I always draw the yellow lines just for a visual reference. Not mandatory, but I generally believe the double tops work better when the RSI is at the more extreme levels.

    AUD/USD

  3. #3
    Entertaining and tidy chart...

    Are you looking at a minimal retracement in between the dual top? And is the RSI place at the 0-100 scale (except needing divergence) significant?

  4. #4
    CLASSIC DIVERGENCE

    I didn't take either of these trades as I didn't see them, but they're a fantastic example of classic divergence and they both meet the requirements of this system. I like to observe that the RSI at least in 70 but preferably at 80 for its timeless divergence trades.

    EUR/USD

  5. #5
    Quote Originally Posted by ;
    Interesting and clean chart... Have you been looking at a minimum retracement in between the dual top? And is the RSI position in the 0-100 scale (except the need of divergence) important?
    Thank you for posting.

    In answering your initial question, If I understand you correctly, there doesn't need to be a particular size to the retracement. I believe up to 4 or 3 bricks would continue to be fine. On the other end of the spectrum, even if you have a look at the chart on about Sept 2nd, there was a double bottom at which the retracement was only one brick and yet the transaction would have exercised, (hindsight of course). Additionally, the RSI was not quit to the 70 level yet. That being said, from looking at 1000's of charts, there generally has to be a fairly strong movement beyond to the dual top being formed. It is an intriguing question as'time was eliminated from the equation from the nature of renko. As an example, a double top on a 15 minute chart doesn't hold much weight compared to a double top on a daily chart.

    Your second question if I understand. Yes, I believe the more divergence (or angle on the yellow line), the better it will work.

  6. #6

  7. #7

  8. #8
    Quote Originally Posted by ;
    quote Thank you for posting. In answering your initial question, If I understand you correctly, there really doesn't have to be a specific dimension to the retracement. I think up to 3 or 4 bricks would continue to be fine. On the other end of the spectrum, even if you look at the chart on roughly Sept 2nd, there was a double bottom at which the retracement was only 1 brick and the transaction would have worked out, (hindsight of course). Also, the RSI wasn't quit into the 70 level however. Having said that, from appearing at 1000's of charts, there generally needs to be...
    Clear... Thank you.

  9. #9
    Hello Expo33,

    I like your honesty here on ribbon and persistance to keep with forex after 10 years.Many traders would quite much earlier.
    Your egy will operate at ranging markets but will destroy your account or at least will have large DD intervals when stronger tendency are there.

    For example, study your EUR/NZD chart just how much would you lose and how much divergences are you? This egy won't work or you need more filters (like longer term brick size with chart 7).

    Merely to safe your time!

    Regards!

  10. #10
    DOUBLE BOTTOM: TRADE TAKEN (manual entry 2 pips overdue )

    Interesting side note: Leading up to the double bottom is some normal divergence, but I have noticed that only 1 brick retracements don't really work out that nicely particularly when using only 7 pip bricks.

    USD/CHF

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