i came across a thread over at FF the other day and it seems that would be a nice concept to code an EA for.
I tried to trade this manually, but it needs too much screentime for a wage slave like me to do this seriously, so an EA would be great.
Here is an overview :
The used pairs are:
EUR/USD, USD/CHF, EUR/CHF
(Other pairs will do the trick too, so this should be adjustable in the EA)
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Open 3 Renko Offline Charts, one for EUR/USD, USD/CHF and EUR/CHF
The Renko brick size should be : EUR/USD = 11, USD/CHF = 11, EUR/CHF = 5
No more indicators needed.
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Now for the EA:
EUR/USD
Open a trade with TP=15, SL= 15 “Buy only”. “Every time when renko prints an up bar”
USD/CHF
Open a trade with TP=15, SL= 15 “Buy only”. “Every time when renko prints an up bar”
EUR/CHF
Open a trade with TP=7, No SL “sell only “ “ every time when renko prints an up bar” (yes, up bar)
TP and SL should be adjustable.
A Trading Times function and a close all trades when CashProfit is reached should be in the EA too.
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Here's a quote from Jeuro :
They say a picture is worth a 1000 words.
Here is a screen shot how the system should look like and some explanations. I do not use any indicators.
Green arrows are triggered trades. Notice all trades in all 3 pairs are with
up bars (green)
No trades with down bars (red bars)
E/U and U/C are 11 pips renko Chart, E/C is 5 pips renko chart (in spite that E/C bars appears to be longer)
Red lines in E/U chart are the 15 tp and 15 sl. And in the E/C chart the 7 pips tp
In the top left of the E/C chart you see I keep track of the "Equity". Not the Profit of open trades.
Because Renko do not use time to close, you can not relate all 3 charts bar by bar. Meaning (example only) it is possible that the U/C triggered all those 5 green arrows in an X "time span" while E/U maybe went only 1 bar in the same X "time span"
And :
--------Example using EUR/USD, USD/CHF , EUR/CHF.
These 3 pairs would make an impeccable (perfect) hedge "IF" Empty4 or Empty4 broker would allow decimal lots size
like 0.21025451. but they don’t, therefore we can use a fix equal lot for all 3 pairs, say 0.30 and here is were we use the renko chart to compensate for the UN-impeccable hedge and take advantage of the fact that EUR/USD and USD/CHF are negative correlated (not always) and that
EUR/USD*USD/CHF=EUR/CHF (always, but between a small inefficiency factor)
To set the EA we “assume” that EUR/USD and USD/CHF are perfect negative correlated. Example:
say the current prices are EUR/USD= 1.2985 and USD/CHF=0.9385 … then EUR/CHF=1.2186 (1.2985*0.9385)
If we are assuming perfect correlation, this means if EUR/USD moves 20 pips up, then USD/CHF would move 20 pips down and we would have 1.3005, 0.9365 and (1.3005*0.9365)1.2179. In other words EUR/CHF moved only 7 pips down.
Therefore I would set the EA for EUR/USD and USD/CHF in a 20 pips renko charts and EUR/CHF in a 7 pips renko chart. EUR/USD buy only, USD/CHF buy only and EUR/CHF sell only. ..no TP, no SL but set to CloseALL when in X profits.
To get a better picture, the EA would buy EUR/USD at close of the 20 pips renko bar (if the bar is up bar). If the closed bar is a down bar, EA does nothing. For USD/UCH would do the same and for EUR/CHF would do the opposite (sells only in the 7 pips renko chart)
I think this approach has potential, but long and tedious without back testing to fine tune or find the weak spots.