Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
Hi
I'm new to the site so hopefully posting this question in right place. I'm interested to know if anyone has coded or could code time based renko bars for ninja7? I recently noticed these on www.fxsol.com website, in particular the accucharts platform. Essentially you can set both the tick size as well as a time interval,for example a 1 minute 3tick chart; which cuts out even more noise out that normal renko bars. Thanks
Can you help answer these questions from other members on NexusFi?
If anyone is still interested in creating time-based renko charts, I had Final Financial Algorithms create one for me. He did it quickly and it worked just like I wanted it to. You can find their contact info at ninja's site under 3rd Party Partners.
Renkos move only when price exceeds a certain range, thus "eliminating" time as a function. If you additionally print new bars every x instance of time, you end up with more bars. Thus you are adding noise, not eliminating it..
lornz,
You are right. A timed renko is counter-intuitive and quite dangerous to use. But when I first started trading, I had subscribed to eSignal and was using their renko that happened to have a time filter. (so does Stockcharts.com) Basically, it artificially smoothed the chart by taking the net move over a certain time interval (say 5 min. for example) then printed the net move only at end of each interval. I was inexperienced and thought it produced very impressive charts that at first glance looked perfect for automation. After working with the charts for a while, I realized what was going on. The charts are still basically renko charts that are still set to a specific brick size, but are only printed in timed intervals. So whatever time interval you set, that is the lag.
Just about the time I decided to use these frankensteins, I switched to Ninja and had one custom programmed. About a week later it finally occured to me what a crazy course I had set out on.
I posted this as I was helping someone search on futures.io (formerly BMT) about different renko downloads (betterrenko etc.) and saw this post, so I thought I would mention it. The person I was searching for is aware of the problem but apparently wants to smooth the renko in this way and trade using a much longer time frame. This would be less dangerous than what I was considering, but I am currently trying to steer him away from this approach.
Getting back to your question: Yes I realize renkos major feature is showing the incremental move without time noise (that is why I use them). The time feature lured me in because it APPEARS to reduce noise. What it really does is create a chart by retroactively printing the net move with renko bars for the given interval and provide the user with the king of all lagging indicators disquised as a chart. In hindsight, I can't believe it took me weeks to notice what I was setting myself up for. Oh well
I wanted to stress that the timed renko, while it was appealing to me at first glance, is a very dangerous idea. I didn't know what I was doing at the time. In my opinion it's a novelty chart that should not be used in live trading or backtesting. When using historic data, they look great. But they are showing you an impossible view that could only be done with a time machine. For example, if you are looking at a live timed-renko set to 5 minutes and 10 tick brick size, the chart will only update once every 5 minutes. So if during that five minutes you get a 50 tick move, you will not know it until the 5 mins is up and then the chart will print a nice, noise-free 5 bars reflecting the net move you just missed! I have to laugh at the insanely great backtesting results I was getting with them from eSignal. But again, it is an illusion.
Don't be discouraged by this, renko charts are at their best when used in their original form showing net price movement. They are a great tool.
I currently use LogikRenko from pureLogik to mitigate some serious technical issues NT has built into their platform regarding Renko charts.
Let me know if you would like to discuss the use of renko any further.
billr
Thank you for your comments. I did send reply earlier but not sure you received it. I rarely use forums to be honest. My post about renko's was sometime ago and I decided not to pursue them. I currently use better renko to daytrade forex together with traditional technical analysis and a currency strength meter but no indicators. I'm always open minded about new ideas and would be interested to know how you find the logitek renko bars and whether they give you an advantage in any way. Do you use any of the other supporting indicators from logitek?
