25# Renko with MACD
Renko with Macd,t he tools for the trade are:
slope direction line indicator,
Currency pairs. Majors,
Box size 5-10-14.
Steps to create and trade this system
place the renko ea file into experts
place the Slope Direction line and the traditional macd into experts/indicators
place the template into templates.
Open a M1 chart for the pair you are going to trade, drag the renko ea from navigator/experts onto the chart.
The blue area is the entry point - as close as you can get to the close. As you can see there are 10 possible trades marked , by my rules as I’ll explain further , 5 winners and 4 losses and the last one in progress, as I write it closed at a loss. As you can see it’s not the holy grail and doesn’t catch the turning points in the market but it will keep you out of the majority of small corrections and help trade an already established trend.
2 nd rule is check the directional slope line is blue after a bar close for longs and yellow for shorts, it doesn’t repaint but can change colour while the current bar is developing so be careful, it has to already have a closed bar on the colour you want to confirm the direction.
The only other indicator I have is the macd , the rule is very simple , for long entries , both lines have to be heading upwards with the green above the red and for shorts, both lines angled down with the green below the red.
Now the reason I listed some as winners and some as losers even though the trade went in your direction for
one or more bars is because I’m looking at a reward for risk of 2 to 1, each trade has a 10 pip stop for a 20 pip arget. You can try different risk to reward ratios, trailing stops, I prefer the set and forget style so this is my
idea for how to trade this method.
This is just something I made up, it’s not a commercial product, it hasn’t been tested properly, I don’t know how to run an offline chart through the strategy tester or even if it can be done?
I haven’t been trading this system as yet although I think it has potential to make good money. I think the only way I would is if someone develops or finds an alert popup, sound and email to the renko ea as is done with other indicators to alert me each time a bar closes. Not knowing if the next bar will close in 10 seconds or 3hrs is something I don’t know if I’m up for, would take a lot of patience. If I could load 10 or even 20 charts and have a pop-up with sound alert to quickly check the pair I’m alerted to I would definitely trade this system.