Renko Bars – How To Backtest Renko

Here is a tutorial on how to visually backtest renko.

This is not for auto-testing (if you figure that out please let me know =), it’s for visual backtesting and gives you the ability to be able to “play”and “pause” the charts, and “fast-forward” which I am using to create winning strategies. I have my entry/exit criteria and then keep records of the wins and losses in excel. Note: To do this you should have already added more renko bars.

1. First of all download this trading simulator shared at ForexFactory by Ronald Raygun. Follow the instructions to manually install to your mt4 or use the auto-installer
2. Go into your metatrader to  c:\program files\metatrader 4\history\ and create a new folder called: renko.
3. In the same folder go into where it says Demo and copy the following files:

   >symbols.raw
   >symbols.sel
   >symgroups.raw
   >ticks.raw
   >all 1 min data, e.g. EURUSD1.hst, GBPUSD1.hst, USDCHF1.hst, etc.
4. Paste the files into your newly created renko folder
5. Open Mt4 and click on Login, use the same user/password but in the server field put: renko and login (no connection)
6. Restart metatrader  (when it opens don’t touch the login button)
7. Put renko script on all or any 1 minute chart, choose the bar size you want and then for timeframe put 5
8. Click View > Strategy Tester
9. Where it says expert advisor choose: LFH Strategy Tester 3
10. For Symbol, choose the currency pair you want (that you put the renko script on)

    Model (every tick)
    Use date – unchecked
    Visual Mode – checked
    Period 5m
    Optimization – unchecked
11. Now click start to open the chart!  (if it says waiting for more then a few seconds, just restart mt4)
12. Right-click to apply a template

Remember that due to the nature of renko bars, price can go almost 2 bars against you with no record. Example – if you short after a down-bar (say 20 pip renko bar) then price can go above where you entered up to 39 pips without creating a new bar.

PS. Credits to “Aktur” at ForexFactory for sharing the original tutorial about how to do backtesting with renko.