Jul 15, 2010

Posted by Jason in Renko | 19 Comments

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.

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  1. RK.ov says:

    Hi, Jason, can you share the indicator on 2nd pic, or tell me the name of that indicator?

  2. Jason says:

    Hi, I can’t share it as it’s not a free indy. It’s called Forex Deal Butler Candles.

  3. RK.ov says:

    thank you

  4. Chris says:

    Hi Jason, which Renko MT4 indicator do you use or recommend we use if we wanna do backtesting on a MT4 simulator? I ask this because not all renko indicators will work on the MT4 simulators.

  5. Hi Chris,

    I’ve tried 3 different versions and like this the best: http://www.michalrutka.com/catalog/product_info.php?products_id=28

  6. Artur says:

    This is a link for auto testing renko. You asked, so I’m posting :)
    http://www.az-invest.eu/backtesting-renko-in-metatraders-backtester

  7. Rafa L says:

    I followed all steps, but when I try to load offline charts setting renko as server, after a no conection status, same profile from demo account with no conection status appeared, that´s all. After that we can not continue with next steps. I advise that on new mt4 version platforms ,the hystory files have to be copied in correct place. Can you help?, please

  8. Jason says:

    The new mt4 is different, instead of going into your metatrader to c:\program files\metatrader 4 — open the program and then go to File – Open Data Folder, all the files need to go in that way..

  9. Rafa L says:

    Sure, I do that, but only charts from the demo account are loaded, and not the M1 charts from hystory\renko file

  10. Jason says:

    You need to make sure that you access all files, history, etc from within Data folder. Also, follow instructions perfectly. I did this a few days ago and it worked fine. (using the data folder)

  11. Rafa L says:

    Yes, all right, I did not see M1 charts loading by default. It was clear after I added

  12. YasserM says:

    Hello, i’ve done exactly all what is required step by step, but when i open the login window, scroll down the server ist i find no server named renko, knowing that i created the folder and everything, anyone might help me please

  13. Jason says:

    Ok, instead of looking for renko in a drop down menu, just type in ‘ renko ‘ into the server field.

    PS. you’re on the right track, I’m doing very well with my renko trading :D

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