PureLogikTrading – LogikUltimateRenko

PureLogikTrading – LogikUltimateRenko

Parameter Open Offset

The closing price of a renko sand bar was traditionally printed at the end of the previous bar. The result is that the price has to move one full bricksize before a new bar can be printed. The LogikUltimateRenko These are the changes.

The LogikUltimateRenko Allows you to choose where the bar will be located relative to the bar that was previously opened, in the event of a new opening price. This percentage (%) is within the range of a full bricksize. Below is an illustration of where this percentage corresponds to a bar.

This feature allows traders to create any type of Renko available on the market or their own. A setting of 50% for example will result in a “Median Renko,” A setting of 100 will create a “Traditional Renko,” etc. The trend direction is less important if the Opening Price % is lower than it is. This allows for small price changes to create more price points that can be used to help market indicators better represent the market.

These images clearly show that the trend is more obvious as the Opening Price% decreases. The price action is smoothed but there is no additional lag when using this algorithm. In this way, the market is represented more closely and the indicators are more responsive.

Note that an Opening Price% of less than 100% must be used to simulate a Market order in backtesting.
Parameter for Reversal Size

If the BrickSize value moves in the same direction as the tick price, a new brick will be created. A reversal brick is formed if the BrickSize changes 100% from the opening of the brick before it.

The Reversal Percent can be used to increase the power of the modification to allow trader’s to better visualize the trend direction.

As you can see, the trend becomes more obvious as the Reversal percentage increases.

If the Reversal% is greater that 100%, it will be reversal. LogikUltimateRenko may draw Phantom bars. Phantom bars can be described as filler bars, or bars drawn at a price jump. To eliminate any price jump that could be caused by only one bar being drawn at the reversal point, a number of phantom bars may be drawn at the reversal. Jumping in price can indicate a jump of the data feeding an indicator. This can lead to overshoots or spurious data points.

It is important to note that the statement above about phantom bar is extremely important. To accurately portray backtest results, the strategy should account for a Reversal percentage greater than 100%.
Adaptive Brick Size (Daily Basis).

The LogikUltimateRenko It can dynamically adjust the brick size according to market conditions.  The algorithm continuously monitors the market data to determine the best brick size for each day.  Each day, the chart is updated with the computed brick size.

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This computation is done in NT7 using an indicator (below).

This function is integrated into NT8’s LogikUltimateRenko By setting a bricksize value of 12345, you can automatically apply this code.
Noise Filtering

It all depends on the real-time tick filter algorithm implemented by the platform, a spurious tick price may pass through from a broker’s data stream.  The Renko chart algorithm only uses tick data received from brokers. This noise can create bricks that are inconsistent with the truth in a whipsaw fashion.  Although this has a minimal effect on the chart price since it depends on the most recent tick, any indicator will be ineffective since the price data is filtered.  As the input size of a brick decreases, this effect will increase.

The LogikUltimateRenko Implements a real-Independent of any other filter, the time tick filter.  This algorithm eliminates the whipsaw effect and does not remove important price information.  Spurious ticks will be identified, classified and removed.

True Wick Display

The LogikUltimateRenko The candle chart-like wick depicts the true High/Low. This allows you to reintroduce important price information lost through the traditional renko bars, while still allowing you to see the underlying price trend.

Wick display benefits:

Large wick-To-brick ratio illustrates strong indecision / possible reversal
Small wick-To-Brick ratio demonstrates little to no indecision / lower likelihood of reversal
It is possible to more efficiently analyze congestion areas using the true price
To determine an adaptive/dynamic trail, a wick endpoint is useful.
To determine support / resistance areas, a wick endpoint is useful.

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