Renko Reversal Entries After Two-Brick Countermoves

Summary

The document presents a Renko-based system that buys after at least two upward bricks follow a decline of two or more bricks, and sells short after at least two downward bricks follow an advance of two or more bricks. The example code builds bricks from closing prices using a configurable brick size and starting chart bar, disables order accumulation, and submits market orders when the corresponding threshold is reached. It also sets a fixed point-based stop loss.

The example suggests use on an index such as the DAX with a 15-minute chart, but gives no test results or performance evidence. Brick size and the initial bar used to anchor the brick sequence can materially change the signals, as the document itself notes. It does not specify a profit target, position-sizing method, or broader risk controls, and the fixed stop may not suit every instrument or volatility regime. The rule is a mechanical reversal-entry idea that requires instrument-specific testing.

Key ideas

• The system enters long after two or more rising Renko bricks follow a decline of at least two bricks.
• It enters short after two or more falling bricks follow an advance of at least two bricks.
• Brick size and the starting bar determine the Renko sequence and can alter signals.
• The example uses market orders and a fixed point-based stop but provides no performance results.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.