APIBridge Renko Candlesticks

APPLYING RENKO ON NORMAL CANDLES

Limitations on Renko traditional charts:
Trading view free/pro users cant access Renko charts for intraday.
It shows wrong back testing results. When we apply strategy on Renko charts/Heikin ashi , it would show best profit curve but that’s unreal because Renko and heikin ashi have so much of variation from real market price.
Above all it actually has chance to mislead people that Renko is best always.
Therefore we are going to setup an alternative Renko strategy which can be applied on normal candlestick charts.

Advantages of Renko strategy with normal candles over traditional:
The price is related to real markets and logic is related to Renko block building this strategy will reduce slippages when applied on real markets.
Trading view free users /pro users who cannot access Renko charts can use this to apply Renko on normal charts.
Therefore Renko charts design are in such a way that it filter out minor price movements to make it easier for traders to focus on important trends and price action. This makes trends much easier to spot, Because we can remove those small fluctuations, so price trends may be easier to spot, and that feature makes Renko charts the preferred price chart for some traders.

A Renko chart is constructed from a series of bricks. whose creation is determined by fluctuations in price. For Instance when a price rises, an up brick is placed on the chart and, with drop of prices a down brick is added.

We will demonstrate you on how you can find one simple Renko strategy and automate its trades

Strategy Premise:
Logic is based on Renko block building, price is related to real markets.
Inputs:
1. We will specify the brick size from the input
2. Trade session during which we want to buy/sell signals will be generated
3 .Exit session during which all open positions are squared of
4. We will give quantity to trade as input

We have two boundaries, the upper one and the lower one, they are calculated based on brick size. We will have trend (represented in color of the upper or lower bound lines)
Trend Green–>Long
Trend Red–>Short

Strategy Logic:
Long Entry: When Upper Boundary is touched, send LE.

Long Exit: When Lower Boundary is touched, or time based exit, send LX.

Short Entry: When Lower Boundary is touched, send SE.

Short Exit: When Upper Boundary is touched, or time based exit, send SX.


Parameters for tradingview

1.Source: It can be a source factor of price in which strategy is computed ex: close,open,hl2,etc.

2.Brick sizing method : Renko is formed by bricks. There are 3 ways to calculate brick size, Fixed brick, ATR,% of close price.

3.% of price/Fixed price amount/% of ATR: Use this to specify % of brick size as input/fixed brick size / %of ATR used for brick size.

4.ATR time frame: ATR is an Average true range of past bars ,use this to select time frame to calculate ATR.

5.ATR length: Specify ATR length if Brick type is ATR.

6.Backtesting : Use this to backtest the strategy between Starting and Ending Date and time , it can also be used to set trades in future time

7.Alert_Message : Need to copy while creating alert into Message Box

8.Trade Setup : Intraday / Positional (Selecct accordingly)

9.Start Time Stop Time (Session 1) : Intraday / Positional start time and end time of trade for session 1

10.End Session 1 : Define time to exit any existing position taken in session 1 so that exchange charges will not apply

11.Use Second Session : Check this to use second intraday session

12.Start Time Stop Time (Session 2) : Intraday / Positional start time and end time of trade for session 2

13.End Session 1 : Define time to exit any existing position taken in session 2 so that exchange charges will not apply

14.Use Target : check if you want to set required target if not cheque will not applicable

15.Use StopLoss : Cheque if you want to set stop loss if not cheque will not applicable

16.Trailling Stoploss : Cheque if you want to set trailing stop loss if not cheque will not applicable

17.Point Or Percentage For TG SL : Use Points or Percentage as per your choice

18.Target : Set as per the selection of (Point Or Percentage For TG SL)

19.Stop Loss : Set as per the selection of (Point Or Percentage For TG SL)

20.TSL_Type : Select as per your logic in %/ATR/Points

21.TSL_Input : Set in case you select %/Points in TSL_Type

22.ATR Length : Set as per your logic if you select ATR in the field of TSL_Type

23.ATR_Mult : Set as per your logic if you select ATR in the field of TSL_Type

24.Segment : Select segment of your logic EQ/FUTIDX/FUTSTK/OPTIDX/OPTSTK/FUTCUR/FUTCUM (Used in case of option / Futures )

25.Select Expiry Date : Select the expiry date of your trade as per the segment you selected (Used in case of option / Futures )

26.Select Expiry Month : Select the expiry Month of your trade as per the segment you selected (Used in case of option / Futures )

27.Year : Select the expiry Year of your trade as per the segment you selected (Used in case of option / Futures )

28.Quantity : Enter the quantity in which you want to trade (Used in case of option / Futures )

29.Product Type : Select MIS/Normal/ CNC as per your logic (Used in case of option / Futures )

30.Order Type : Select Market/Limit as per your logic (Used in case of option / Futures )

31.Strategy Tag : Enter the value in case you are using webhook / advance template in APIBridgeTM

32.Lotsize : Enter the lotsize as per your lotic and quentity selection (Used in case of option / Futures )

33.STEP (OTM/ATM/ ITM ) : Select OTM(+1)/ATM(0)/ ITM (-1) as per your logic works in case of options only

34.DIFFERENCE_BETWEEN 2 STRIKE : Select difference of 2 strikes you have used in APIBridge symbol setting list, like for Nifty 50 BankNifty 100

35.APIB Port : Set as per provided to you by Algoji in case of webhook / advance templet

The Segment full form is given below
EQ Equity
FUTIDX Future Index
FUTSTK Future Stock
OPTIDX Index Option
OPTSTK Stock Option
FUTCUR Futcur Currency
FUTCUM Future Commodity