Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
See the Better Renko thread for more info, but it basically has to do with how the bars are built vs displayed. Most renkos will insert dummy data when there are gaps, and the other main difference is the actual value of the open of the bar. Both of these are pertinent when trying to backtest.
The issue with gaps is dummy data is inserted to fill in the bars (also where you get some of those nice waterfalls). For real time trading, this is only an issue if you are trading at session boundaries or news. For backtesting, it is an issue if you do not take it into account (i.e. check for bars with zero volume, or block out certain times).
The second issue is the lack of what I call the wick data. In NT, the renko bar is built and the open and close are maintained, but there are several issues, including the open may not be the true open of the bar, all of the data outside the open-close is not there (tail of the bars), and in some cases the volume of the bar is incorrect. Ninja is aware of these issues and has chosen to provide them as is. When I first started looking at this issue, I came up with WickedRenko, but I found that it still had flaws, and moved onto BetterRenko. Obviously missing wick data will affect backtesting.
Finally, many of the implementations do not maintain the correct open value, and instead store the "renko open" so the bar can be displayed correctly. This does not really affect most indicators, as they generally use the close of the bar. This can be a major issue with backtesting though, depending how the code is written. For example, if your strategy enters at the next bars open you are not going to get accurate results.
Let's not split thread topics please. This thread is about a poem, lets keep discussion about Better Renko in the Better Renko thread so it is easier to find in the future.
Compared to every NT bar, native and third party. All of this is strictly personal preference. There is no right or wrong. Does it help you make money? That is the true test of value, not some mathematical mumbo jumbo.
Whatever the renko logic, I'd recommend artificially creating them on a range chart. This solves a number of problems, it allows you to see the true highs/lows (tails) but also allows you to see the movement inside each bar. It will also aid in …
And will be closed to prevent splitting topics over threads.