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Renko bar testing in MC


#1

Here’s the run-down of my strategy:

Based on Renko bars
Strategy is very short-term, eg, tight stops and achievable targets I have been told before that MC has a more accurate count and formation of Renko. Could somebody here explain?


#2

Multicharts keeps ticks during a time-period that are outside of the Renko ‘block’ for back testing, so it should give you a good and accurate picture when you back test with MultiCharts. This is important because many software packages do not recognize that and many of those trades that are filling at their profit target would actually be stopped out instead


#3

Thank you for this explanation. How long is your demo for MC?


#4

What is the general issue with Renko?


#5

Most software give the benefit of hindsight and do not accurately represent the true price movements down to the tick level.
Also, many have a default Renko bars which will post block direction without taking into account the ranges on the inverse side of the range. This will generate high profits in hindsight. Apparently MC does not do that.


#6

The general issue is separating the profits and loss as they occur on the bar. Essentially, what happens first: a loss or a profit on a given bar.