Having posted my previous, I thought that I have debunked Renko so often that I must have saved the text. Indeed I had. Here it is:
Renko trading should be a doddle, shouldn't it? All those bricks marching determinedly off in one direction, then reversing, then reversing again.............. An idiot could trade them.
So any cretin trading them will be super-rich within months, yet not every one contributing to SHF is a cretin. Some of them are seriously clever. A fair few, in fact.
So we return again to the inevitable question: why does trading Renko charts ultimately lead to failure?
One thingy of course is time. A 20 pip Renko brick could take a long time to form. I have watched 5 pip Renko bricks take what felt like a small ice age to form.
Then we come to the bit that very few people know and that I only learned recently, yet should be blindingly obvious to anybody with a firing synapse - which is where I absolve myself.
The blindingly obvious bit is the reason that back testing is such a waste of time. The only data a historical candle holds is the ohlc and open time. On an incidental note, it never ceases to astonish me that so many people ignore this piece of information and make no attempt to absorb its importance, but that is their problem. "There are none so blind as those who refuse to see" etc. Or mindlessly moronic etc.
Moving on. Those historical Renko bricks are not built up from a database of gazillions of actual ticks. They are built up from the ohlc data of ........ erm ........ some candles in Empty4's chart data. Anyone here any idea which ones?
Does it really never occur to anyone totally failing to make any sense of trading Renko charts to wonder why they are such crap now when they were so clear in the past? What you see historically on the charts is invented by RenkoLiveChart and will bear no resemblance to what was happening at the time.
The RenkoLiveChart ea that produces these abortions deserves to belong to the pantheon of the worst of the Crap Custom Abortions of All Time.
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