Renko Chart Day Trading System

In November 2013, renko charts were added to our trading method strategies, and a renko chart base trade setup became what I used most frequently for futures day trading.

And ever since that time, I have also wondered whether I could develop a profitable renko chart day trading system that could be traded mechanically.

I was fine with the day trading method and a combination of renko charts and price tick charts.  I liked using the renko charts for day trade setups, and a tick chart locating key prices, momentum extremes, and getting a clearer look at whether the market was consolidating.

However a number of people in our training group would prefer the simplicity of using the renko charts only – so I began the project of trying to develop a renko chart system for futures day trading.

Renko Chart Day Trading System

Renko Day Trading System Development

There are 5 video links on this page that cover from 4-5 to 4-7.  These videos discuss notes and different tests for the renko trading system development and trade rules, along with a discussion of my first real trades.

Besides discussing the initial system rules and trades, the videos also consider a number of tradeoffs between the system and the trading method.  But at this time, the renko chart day trading system rules, without using trading method filters has been profitable.

I still have some adjustments that I am considering, but the primary keys to the renko trading system results so far have been:  (1) there are more winners than losers (2) the average win size is bigger than the average loss size (3) many of the biggest moves will also include an addon that will maximize trade size and profitability.

So, I plan to trade the renko system the rest of the week and make final decision for some tradeoffs I am testing and then release the system.  I especially need to decide about:

  • Renko brick size for the emini dow – I have been working with a 4 brick and 5 brick
  • Stop and partial profit size – making decisions inside a brick -vs- using completed bricks