However, renko charts are no holy grails. They look visually very appealing but the fact that you have to wait for a fixed range to close before you can confirm a signal makes the renko charts particularly lagging when compared with time based charts. However, renko charts, as I said before, show us a very good picture of the overall market movement and are invaluable tools for a trend follower or support/resistance trader.
How do we draw renko charts on metatrader 4 ? Well, lucky for us, this matter has already been answered by the people at forexfactory however, I am also making a video so that you all can easily get your renko charts (range based charts) on your mt4 platforms. You should remember that backtesting is impossible on renko charts as the backtester does not support the loading of offline charts for testing.
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hi buddy, your blog is great.
Renko charts is able to be backtested. I have written script to load feeds from renkolivechart, and pass the trade message from renko chart to renkolivechart for trading, which makes it possible to follow the trade signal.
Honestly it is a lot work.
Hi Chen,
Well, I would be pleasantly surprised if backtests could be done on renko charts using the strategy tester. That will certainly make things easier to test strategies developed on these charts ! Would you like to explain in a little bit more detail how you achieved this ?
Thank you for your comment !
Best Regards,
Daniel
You need the following trick to do it:
1. go to the c:\Program Files\Metatrader\history folder. You should see subfolders with
trading servers feeds.
2. make a new subfolder with the name Renko e.g.
3. go to one of your trading servers folders ( folder should be in history\xxxx_server) and
copy the following files into history\Renko folder:
– symbols.raw
– symbols.sel
– symgroups.raw
– ticks.raw
– 1 min data, e.g. EURUSD1.hst, GBPUSD1.hst, USDCHF1.hst, etc
4. start Metatrader and manually log in into account but write Renko in the server field, off
course there will be no connection.
5. restart Metatrader to clean its preloaded data (you should see Waiting for update on all
charts except 1 min).
6. drop Renko script on 1 min chart but now select a standard TimeFrame to generate, for
example 5 min.
7. Now you can backtest with M5
Hello Greg,
Thank you for your comment :o) However bear in mind that due to the actual structure of the MT4 backtesting procedure renko chart backtesting CANNOT be done accurately. This article explains it better : http://mechanicalforex.com/2010/07/dont-fool-yourself-why-renkorange.html. Thanks again for your comment,
Best Regards,
Daniel