Hello everyone,  

Do you remember my work on the RENKO ?    

From this indicator, we will try a very simple strategy.

The simplest is the “PURE” Renko.

For the definition of the Renko, I refer you to other sites that explain it very well.

We go LONG if : we have 2 “bullish” Renko bricks in the same direction.

We go SHORT if : we have 2 “bearish” Renko bricks in the same direction.  

So we are constantly on the market. We are just following the trend.

Here is the result of the backtest, on the DAX : H1 graphs (no matter, because the important thing is the size of the Renko bricks), Renko size : 40 points, Spread: 1 point, test “tick by tick”.

As you can see, the strategy is profitable. Low success rate, compensated by some highly winning trades.

I think there’s plenty of way for improving this strategy idea, adding refined entry rules, a breakeven, a trend filter, and so on.

And one can test this strategy on the forex with other sizes of bricks.

Here is the code (very simple, but the indicator words well also) :

Defparam cumulateorders = false

boxSize = 40

once renkoMax = ROUND(close / boxSize) * boxSize
once renkoMin = renkoMax - boxSize

IF high > renkoMax + boxSize THEN
 WHILE high > renkoMax + boxSize
  renkoMax = renkoMax + boxSize
  renkoMin = renkoMin + boxSize
 WEND

ELSIF low < renkoMin - boxSize THEN
 WHILE low < renkoMin - boxSize
  renkoMax = renkoMax - boxSize
  renkoMin = renkoMin - boxSize
 WEND
ENDIF

buy at renkoMax + boxSize stop
sellshort at renkoMin - boxSize stop