Renko Bar Based Trading System for ThinkorSwim

[drbdanish]

And if you are beginner, never trade in the first hour. It's very volatile. Learned the hard way...

 

[rad14733]

And if you are beginner, never trade in the first hour. It's very volatile. Learned the hard way...

Yes, and that goes for any strategy/indicator/system... While I do like playing early session breakouts, it can be very risky... You definitely don't want to try juggling too many trades immediately after the open... You can get beat up pretty bad if you do... Been there, done that...!!!

 

[Chris77]

Thank you for all this work, it's appreciated. I incorporated WAE and RBP in my futures strategy and I'm happy with it.

Here are a few I noticed:

• I switched RBP which is kind of working for bullish trend (there is one very similar for bear strategy too) with one that covers both trends (bull bear power, it's here on the website)
• is there a way to change the light green color to something more obvious? I'm using dark theme in TOS and sometimes I dont notice a change from dark green)
• I'm not using renko bars as I get more triggers that aren't right

Again, good job of sharing all of these!! Have a great weekend.

 

[D_Tramp]

HI! Help me with WAE study, please.
I'm trying to add an arrow when the explosion line crosses dead zone, but arrows appear everywhere, and it's wrong.

Here is the screen of problem:

And here is the code I pasted at the end of the original WAE study:

plot exABOVE = ex crosses above xLine;
exABOVE.SetPaintingStrategy(PaintingStrategy.ARROW_UP);

What's wrong?
Thanks.

 

[rad14733]

@D_Tramp, You need to edit the plot settings so the Value is being treated as Boolean instead of Numerical... Then it will only plot the up-arrows when the crossover takes place rather than on every bar/candlestick...

 

[D_Tramp]

@D_Tramp, You need to edit the plot settings so the Value is being treated as Boolean instead of Numerical... Then it will only plot the up-arrows when the crossover takes place rather than on every bar/candlestick...

I got it. Thanks.
One more question. If I want to use this condition in the strategy to add orders when explosion line > deadzone, what I need to change in the original WAE?

 

[Chris77]

I got it. Thanks.
One more question. If I want to use this condition in the strategy to add orders when explosion line > deadzone, what I need to change in the original WAE?

If I change in the exAbove tab the Values to Boolean, arrows disappear. What am I doing wrong?
Thank you for help.

 

[rad14733]

I got it. Thanks.
One more question. If I want to use this condition in the strategy to add orders when explosion line > deadzone, what I need to change in the original WAE?

Based on how WAE works, I'd be hesitant to use ex crosses above xLine as an entry indicator but you're welcome to try... First, you would need to convert the Study over to be a Strategy... Then you simply insert AddOrder() function calls that utilize the condition I just described... I've never attempted to use WAE as part of an AddOrder() Strategy...

 

[rad14733]

If I change in the exAbove tab the Values to Boolean, arrows disappear. What am I doing wrong?
Thank you for help.

Yeah, I just checked and got the same result... It appears that a new plot would need to be created and plotted for the crossover, similar to how I described in my previous post... No need to convert to a Strategy unless you will be adding an AddOrder() for backtesting...

 

[MayamanMarne]

TOS really doesn't have much for ATR settings when it comes to Renko Bars... At least not that I am aware of... When I mentioned ATR that was what I was referring to... I am, however, toying around with an ATR related indicator...

Hi rad14733 do you have a Watchlist Column in Renko Bars?

 

[BenTen]

@MayamanMarne I don't think you can display renko bars as part of your watchlist, if that's what you're asking for.

 

[MayamanMarne]

@MayamanMarne I don't think you can display renko bars as part of your watchlist, if that's what you're asking for.

How about Reversal? is this available to put up in watchlist column?

 

[rad14733]

How about Reversal? is this available to put up in watchlist column?

Yes, Renko Bar reversals could be signaled in a watchlist column just as any other reversal could be signaled...

 

[rad14733]

Cant download your set up from this link to my TOS all I see is waiting for data icon ?

The link in your post worked fine for me but I'm not using the Zulu interface because it seems to be broken for many users... Follow the directions about clicking on the link to copy and then goto Setup > Open shared item and Paste the Copied link into the box and Import...

 

[RickK]

@rad14733 ,

Thank you very much for such a well-thought and detailed strategy. You are very generous to have put this up.

I am really looking forward to testing this on Monday with futures. It looks as though the ATR($2) range on /ES may work very nicely.

I wish you well, ..... and profitable trading.

 

[rad14733]

@rad14733 ,

Thank you very much for such a well-thought and detailed strategy. You are very generous to have put this up.

I am really looking forward to testing this on Monday with futures. It looks as though the ATR($2) range on /ES may work very nicely.

I wish you well, ..... and profitable trading.

Thank you for the kind words... I look forward to hearing your results as well as any tweaks that you might implement for use with Futures...

 

[RickK]

@rad14733 ,

Wow! This keeps getting better and better. I'm hoping that I can track the same in live trading as I'm seeing on the charts.

Here's a new layer for possibly some VERY high probability scalping that will keep you out of trouble during chop or shifts.

Adhering to @rad14733 's original strategy rules (mostly), I wondered what would result from a multi-time-frame approach, of sorts. So, my right hand chart is the classic Renko setup on a ATR($2) range and my left hand chart is the exact same, but on a 1m time frame. Note: I like a 9 period HULL MA on my 1m charts to determine exits. I'm a total 'fraidy cat and, with futures it can go against you very quickly, so I'm happy to get out early as a protection...getting back in when conditions resume.

You definitely miss out on some great trades with this MTF approach, but there are still plenty of tradable signals.

Here are the rules so far (rules given only explain a "longs" scenario):
1. Instrument observed: /ES (10/30/2020)
2. Charts Renko ATR($2) and 1m (candlestick)
3. No trades for the first 10min or last 30min of RTH session.
4. Take trades ONLY in the direction of the last Trend_Reversal_Indicator signal on the Renko chart. Even better if trend reversal is indicated on both charts. (If all following rules align, you can take a trade on the reversal candle.)
5. Assuming a long trend reversal, watch the Renko chart for 3 green histogram bars (Waddah, BOMP & RBP) disregarding whether the Waddah
bar is higher than the ex line (this is where I divert from the original rules).
6. Now look to the 1m chart. Is price above Hull(9)? If yes, proceed to the next step.
7. Also on the 1m chart, if you also have 3 green histogram bars for Waddah, BOMP & RBP, now take a long position on this candle.
7a. Now, stop looking at the histograms because the colors will change and it will only get confusing. When you're in the trade, simply watch price action as it relates to the Hull(9) on both charts.
8. Stay in the trade until a candle closes below Hull(9) on your choice of the Renko or the 1m charts. This rule hasn't been worked out perfectly. I've seen where it is best to exit when price crosses Hull(9) on the 1m chart and at other times on the Renko chart. Possibly it is best to set a hard stop loss (with enough room to let the trade breathe).
9. Immediately go back to Step 4 above and rinse/repeat.

Results (estimated) for /ES (10/30/2020):
Trades: 26
Wins: 18
Losses: 7
Break Even : 1
Win:Loss Pct: ~69%
Net Gain/Loss (Points): +41.5 points (166 ticks @ $12.50/tick [assuming 1 contract trades])
Net Gain/Loss ($): +$2075

Interesting to say the least. Any ideas for improvements?

Note: in the image below I removed the RSI upper indicator for clarity only.

https://imgur.com/a/BNkukPD

 

[rad14733]

@RickKennedy Sounds like you're honing in on what works for your trading mindset and security choice... Tweaking the resources to work within your parameters is the key to the game... Hopefully live trading will prove as profitable as your testing has been...

 

[RickK]

@rad14733 ... After further review, maybe item 7a isn't such a good idea. Maybe go with the shift of Waddah bars instead.

 

[rad14733]

@rad14733 ... After further review, maybe item 7a isn't such a good idea. Maybe go with the shift of Waddah bars instead.

Gotta pay attention to WAE... There is a lot of information that can be gleaned from that one indicator... Same goes for the Zscore indicator I've been tweaking as of late...