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.
- 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
- Go into your metatrader to c:\program files\metatrader 4\history\ and create a new folder called: renko.
- In the same folder go into where it says Demo and copy the following files:
>all 1 min data, e.g. EURUSD1.hst, GBPUSD1.hst, USDCHF1.hst, etc.
- Paste the files into your newly created renko folder
- Open Mt4 and click on Login, use the same user/password but in the server field put: renko and login (no connection)
- Restart metatrader (when it opens don’t touch the login button)
- Put renko script on all or any 1 minute chart, choose the bar size you want and then for timeframe put 5
- Click View > Strategy Tester
- Where it says expert advisor choose: LFH Strategy Tester 3
- For Symbol, choose the currency pair you want (that you put the renko script on)
Model (every tick)
Use date – unchecked
Visual Mode – checked
Optimization – unchecked
- Now click start to open the chart! (if it says waiting for more then a few seconds, just restart mt4)
- 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.