Chart: DJ Mini Renko5.cht
The charts for the InterChart Tools Renko Bar examples described in this help file are installed in the "InterChart Tools Renko Bars Examples" subfolder of the NeuroShell Trader folder.
This chart is based on the E-mini Dow ($5) Futures. The size is equal to $5 times the Down Jones Industrial Averages.
Some simple trading rules that use the momentum of the Renko Close Bars result in a profitable trading system.
Trading Rules:
BUY LONG CONDITIONS
A>B (Momentum (Ict Renko Close)) > 0
SELL SHORT CONDITIONS
A<B (Momentum (Ict Renko Close)) < 0
In addition to the use of the Ict Renko bars, there are some items to note about the set up of this chart that made it successful. First of all, the chart traded only between the hours of 7:30 am to 3:00 pm. There are unique trading patterns that exist throughout the day, such as a differing amount of volume at different times. If you try to create a model for the entire trading day, you will end up with an "average" model that doesn't return profits at specific times. If you concentrate your model on a period of higher volume, for example, it will learn the patterns for that particular type of market and return higher profits.
Note that the Ict Renko Close bars use a range of 1 to 15 for the Ticks for Up Bar and Ticks for Down Bar, which is a higher value than we used in our previous examples.
Additional set up for this model included trading on $2500 margin starting with an initial account balance of $40,000, a point value of $5, and commissions of $2 per side. The Trading Strategy used the Fixed Fractional position sizing method.