SpeedWealthBiz or SWB Trend Trading Strategy

[eticon]

Hi eticon,

 

Thanks for sharing this promising method here with us.

R: I still doubt is this a promising TS, my friend never see their real account statement b4 even though she has requested several times.

 

 

1. For the advance entry rules, how are the weekly and daily trends determined? Is that by looking at the renko bricks color? If the current weekly renko brick is RED, this mean down trend for the weekly timeframe? Is my understanding correct?

R: Yes you are correct, but take note, daily renko is confirmed on 00:00 every trading day. whereas weekly renko is confirmed on every Monday 00:00.

 

2. I am still confused why the renko bricks look different when I switch from daily to weekly time frame. I thought each renko brick is only painted every 125 pips of price move. Therefore, it should be independent of time and changing timeframe should not have any effect on the renko bricks.

R: It looks different in both Daily and Weekly TF is because when you r in Daily TF, the indicator Renko2 is using Daily candle to calculate; when u r in Weekly TF the indicator is using Weekly candles to calculate. Both Daily and Weekly starting candle are in different date with different OHLC price. Press [F2] History Center, look for EU pair, double click the Daily TF, on your right window pan, scroll down to bottom see what is the date of the 1st candle, do the same for weekly TF and compare the date, most probably they are different.

 

 

Hope this help..

 

Cheers

 

R

 

Thanks, Cubicrey!

 

Your explanation is very clear and easy to understand. Really appreciate your help to clarify this to me.

 

I wonder what is the real advantage of using the Daily and Weekly time frame for Renko. Perhaps the renko chars would be more accurate if it is updated according to every price change.

 

Eticon

[eticon]

btw, i had been using this method before Michael Loo promoting this. I learnt this from Steve Nicholson's book. Steve Nicholson also recommended 1% as box size.

 

Hi Digitalman88,

 

Can you explain how the 1% box size is calculated? Is it 1% of the ATR or something else?

 

Thanks!

 

Eticon

[altoronto]

Guys can someone clear some things to me in this thread, as far as I know .. and I have renko charting script, so no need for renko indy on weekly or daily chart which I think is nonsense cause renko is based on price movement no time based, so if size is 125pips on daily or weekly chart it will show you same thing. So to get daily chart/trend - renko candle size is 125pips and what about weekly trend? What is size of renko candle for weekly chart/trend?

 

 

"1. On every Monday after 00:00, identify the Weekly Trend (long term) first.

 

2. On every morning after 00:00, identify the Daily Trend (short term).

Weekly Long + Daily Long = Go Long

Weekly Long + Daily Short = Stand Aside

Weekly Short + Daily Short = Go Short

Weekly Short + Daily Long = Stand Aside"

[digitalman88]

It is calculated by 1% of price movement

 

http://lcchong.files.wordpress.com/2010/11/renko-1-percent.png

[altoronto]

digitalman88, is this new mt5 or something else?

[john225]

It is prorealtime

[bluewoof]

Guys can someone clear some things to me in this thread, as far as I know .. and I have renko charting script, so no need for renko indy on weekly or daily chart which I think is nonsense cause renko is based on price movement no time based, so if size is 125pips on daily or weekly chart it will show you same thing. So to get daily chart/trend - renko candle size is 125pips and what about weekly trend? What is size of renko candle for weekly chart/trend?

It depend on how the renko brick is being formed - based on using 1 minutes price candle or daily price candle.

 

Using 1 minutes will give you a faster update on the renko brick and the new renko can be formed any time of the day. We don't want this as we only once to check trade 10 minutes per day based on SWB. Using the daily candles, any renko bar will be plot one per day based on close of the daily candle.

[JasonKwok]

one thing that Michael Loo doesn't seriously teach is currency correlation. In the original turtle trading, they put emphasis on inter-market correlation to increase probability of success. A lot of people don't know importance of currency correlation.

 

This guy always stated that psychology as the key success factor. Actually, there are more than that.

 

I am using the similar method, but i take currency correlation into consideration before i place any order. Frankly, the result for the past 4 years are encouraging and satisfaction.

 

hi Digitalman88,

 

By currency correlation, do you mean that when there is a signal to go Long on, say, EURUSD, you will check if EURJPY is in uptrend (EUR stronger than JPY) and USDJPY in downtrend (USD is weaker than JPY)? So, we will have EUR stronger than JPY and JPY stronger than USD, therefore by transitive, EUR should be stronger then USD and will increase our probability in EURUSD Long trade?

[JasonKwok]

Guys can someone clear some things to me in this thread, as far as I know .. and I have renko charting script, so no need for renko indy on weekly or daily chart which I think is nonsense cause renko is based on price movement no time based, so if size is 125pips on daily or weekly chart it will show you same thing. So to get daily chart/trend - renko candle size is 125pips and what about weekly trend? What is size of renko candle for weekly chart/trend?

 

 

"1. On every Monday after 00:00, identify the Weekly Trend (long term) first.

 

2. On every morning after 00:00, identify the Daily Trend (short term).

Weekly Long + Daily Long = Go Long

Weekly Long + Daily Short = Stand Aside

Weekly Short + Daily Short = Go Short

Weekly Short + Daily Long = Stand Aside"

 

There is a difference on renko chart based on different time frame because it is computed based on the closing price of each candle. At the close of a Daily candle it may give you a 125 pips move and hence a new brick but on weekly chart, at the close of the weekly candle, price may have retraced to less than 125 pips movement for that week, hence you do not have a new brick on weekly chart. For M.Loo strategy, use 125 pips for both weekly and daily chart. And if you are using the Renko_2 indicator, set 125 for 4 digits broker and 1250 for 5 digits broker.

[digitalman88]

yes, something like this. You can search in google. some brokers provide a heatmap too.

 

http://lcchong.files.wordpress.com/2010/10/image44.png

 

hi Digitalman88,

 

By currency correlation, do you mean that when there is a signal to go Long on, say, EURUSD, you will check if EURJPY is in uptrend (EUR stronger than JPY) and USDJPY in downtrend (USD is weaker than JPY)? So, we will have EUR stronger than JPY and JPY stronger than USD, therefore by transitive, EUR should be stronger then USD and will increase our probability in EURUSD Long trade?

Edited November 3, 2010 by digitalman88

[digitalman88]

if we use different brokers, our renko will have differences (may be a bit significant).

 

that's some experts advised to use prorealtime or esignal because these charting software consolidating data feed from many providers. So, i think, by right, the renko chart will be more accurate.

 

Anyway, at least I now getting the same color bar as what you guy are seeing. One thing confirm, the data feed from ibfx standand and ibfx mini are different.

[cubicrey]

Anyway, at least I now getting the same color bar as what you guy are seeing. One thing confirm, the data feed from ibfx standand and ibfx mini are different.

 

Hi bluewoof,

Yes, you are right sometimes the data feed is different between IBFX std and mini account, as such it is possible one has hit the reverse signal(opposite color brick appear) and the other is not due to just 1~3 pips difference.

 

R

[cubicrey]

Hi altoronto,

The renko script you mentioned is not suitable/practical to work with this strategy. Try to understand the strategy and hands on yourself, then you will get a clearer picture why Renko2 indicator is required instead of the Renko script.

 

Renko script need so much of resources to generate 125pips box size and it can not identify the trend difference between daily and weekly. Whereas the Renko2 indicator can do so is because the indicator using the open price of the candle from respective time frame. Please refer to post #67, I have explained why the renko2 indicator giving the different value in both time frame even though both r using the same box size of renko.

 

Hope this help.

 

Cheers

 

R

Edited November 4, 2010 by cubicrey

[cubicrey]

Hi digitalman88,

 

I'm glad to see you here to share your experiences with us.

 

May I know what is the title of Steve Nicholson book, possible to share with us.

 

Is it possible for you to post EURUSD Daily chart for both MT4(125pip) and prorealtime(125pip and 1% price movement) (both using the same date range upto todate) here to compare. The most important is to see which one is less noise.

 

When you set 125pips renko box size in prorealtime, is it using tick or 1 min to calculate or the respective TF candle to calculate.

 

I still don't understand how the prorealtime generate the fixed box size by using the 1% price movement, could you explain for this.

 

 

I am using the similar method, but i take currency correlation into consideration before i place any order. Frankly, the result for the past 4 years are encouraging and satisfaction.

 

Could you clarify the "similar method for past 4 years" is only using correlation technique? only renko technique? or both correlation and renko technique?

 

Are you a position or intraday trader? I want to know how much effective when the correlation apply to long term/position trading.

 

It would be very appreciate if you could share your profitable startegy in details.

 

Thanks again for your participate.

 

Cheers

 

R

[JasonKwok]

Noticed that M.Loo move the stop loss closer when a new brick formed at the close of the day for GBPUSD.

 

His trailing stop is 250 pips from the high of the new brick in the direction of the trade.

 

 

Update:

 

Why?

 

This morning I was not able to see the chart at 8am (GMT+8) until noon time. Saw a new brick formed but after a while the new brick disappeared. This shows that the new brick was not confirmed by the close of the yesterday daily candle and price has retraced for GBPUSD. Conclusion is that we have watched the chart at 8am (GMT+8) at the close of the daily candle.

 

If M.Loo trail his stop loss using 250pips from the high of a new brick, than he shouldn't be moving his stop loss closer. Guess he is also not watching the chart at the close of the candle but after and mistaken the new brick formed to have been confirmed by the close of previous day candle. caught ya, Loo!

Edited November 4, 2010 by JasonKwok

[cubicrey]

Noticed that M.Loo move the stop loss closer when a new brick formed at the close of the day for GBPUSD.

 

His trailing stop is 250 pips from the high of the new brick in the direction of the trade.

 

Yes today the new same color renko brick confirmed at 00:00 (trend continuation), so the SL is follow automatically.

 

Today GBPUSD chart shall giving the followings:

Daily Renko: 1.6103 (2 nos.blue brick)

Reverse Signal Line (Stop Loss) = 16103-250 = 1.5853

 

Daily MACD cross up

 

Weekly Renko:1.6040

Reverse Signal Line = 1.5665

 

Action: was Long on 1Nov2010 with price ~=1.6015.

 

Cheers

 

R

[JasonKwok]

Yes today the new same color renko brick confirmed at 00:00 (trend continuation), so the SL is follow automatically.

 

Today GBPUSD chart shall giving the followings:

Daily Renko: 1.6103 (2 nos.blue brick)

Reverse Signal Line (Stop Loss) = 16103-250 = 1.5853

 

Daily MACD cross up

 

Weekly Renko:1.6040

Reverse Signal Line = 1.5665

 

Action: was Long on 1Nov2010 with price ~=1.6015.

 

Cheers

 

R

 

hi Cubicrey,

 

The new brick was "re-painting" itself during the minor retracement earlier, so it was not confirmed by yesterday close. Show that Loo was not monitoring the chart at 8am too.

[digitalman88]

my so called "similar method" is to use 1% renko box rather than fixed pip size. I also take currency correlation into consideration. So my method is not 100% mechanical if compare to Michael Loo's method.

 

Steven Nicholson book is "Beyond Candlesticks".

 

MT4 RENKO_2 is not that much different if compare to prorealtime. However, ProRealTime offers something handy feature which can avoid "Guess he is also not watching the chart at the close of the candle but after and mistaken the new brick formed to have been confirmed by the close of previous day candle. caught ya, Loo!"

 

http://lcchong.files.wordpress.com/2010/10/image20.png

 

 

Hi digitalman88,

 

I'm glad to see you here to share your experiences with us.

 

May I know what is the title of Steve Nicholson book, possible to share with us.

 

Is it possible for you to post EURUSD Daily chart for both MT4(125pip) and prorealtime(125pip and 1% price movement) (both using the same date range upto todate) here to compare. The most important is to see which one is less noise.

 

When you set 125pips renko box size in prorealtime, is it using tick or 1 min to calculate or the respective TF candle to calculate.

 

I still don't understand how the prorealtime generate the fixed box size by using the 1% price movement, could you explain for this.

 

 

 

 

Could you clarify the "similar method for past 4 years" is only using correlation technique? only renko technique? or both correlation and renko technique?

 

Are you a position or intraday trader? I want to know how much effective when the correlation apply to long term/position trading.

 

It would be very appreciate if you could share your profitable startegy in details.

 

Thanks again for your participate.

 

Cheers

 

R

[cubicrey]

hi Cubicrey,

 

The new brick was "re-painting" itself during the minor retracement earlier, so it was not confirmed by yesterday close. Show that Loo was not monitoring the chart at 8am too.

 

 

Hi Jason,

 

It is a confirmed 2nd blue brick this morning 8am Sg/HK/Mly time (00:00 GMT+0). let me explain to you here, yesterday (23:59) candle closed at 1.61047, and the new renko value is 1.6103, that meant if yesterday close price is higher than this renko value at 00:00, this new renko brick is a valid and never repaint.

 

FYI, in Daily TF the 1st candle is starting from 2002 July 09, OpenPrice=1.5434

in Weekly TF the 1st candle is starting from 1990 Dec 02, OP=1.9498.

 

Hope you understand now.

 

Cheers

 

R

[JasonKwok]

Hi Jason,

 

It is a confirmed 2nd blue brick this morning 8am Sg/HK/Mly time (00:00 GMT+0). let me explain to you here, yesterday (23:59) candle closed at 1.61047, and the new renko value is 1.6103, that meant if yesterday close price is higher than this renko value at 00:00, this new renko brick is a valid and never repaint.

 

 

FYI, in Daily TF the 1st candle is starting from 2002 July 09, OpenPrice=1.5434

in Weekly TF the 1st candle is starting from 1990 Dec 02, OP=1.9498.

 

Hope you understand now.

 

Cheers

 

R

 

hi Cubicrey, when I open the chart, the new brick was painted but after about half an hour later, it disappeared. looking at the price chart, GBPUSD was having a retracement. When I came back from a meeting, the new brick was formed again as GBPUSD continue moving up.

 

Perhaps it's the history data. I'll try to edit the history price feed to match with Loo.

 

Thanks.

 

Update:

 

Do you think it is possible to put a time stamp on the new brick formed that is confirmed at candle close? Is this programmable on Renko_2 indicator? Then it will be like ProRealTime.

 

Personally still prefer to use the chart from the broker that we will be opening the trade with, especially for Spot Forex where there is no centralized pricing.

Edited November 4, 2010 by JasonKwok

[JasonKwok]

 

FYI, in Daily TF the 1st candle is starting from 2002 July 09, OpenPrice=1.5434

in Weekly TF the 1st candle is starting from 1990 Dec 02, OP=1.9498.

 

 

hi Cubicrey,

 

Where can I download the history that Loo is using?

 

In History Data, my Daily TF on 2002 July 09 has the open price of 1.54170.

The first candle on weekly time frame, the first candle was only 1999 Jan 03.

 

Where to get the data that Loo uses?

[cubicrey]

hi Cubicrey,

 

Where can I download the history that Loo is using?

 

In History Data, my Daily TF on 2002 July 09 has the open price of 1.54170.

The first candle on weekly time frame, the first candle was only 1999 Jan 03.

 

Where to get the data that Loo uses?

 

I will upload the csv files, you will receive tonight or tomorrow morning.

 

My friend told me he is actually trading 20 pairs live (not sure true or not), start with min 30K, using IBFX AUS levelage 1:100.

AUD/CAD

AUD/JPY

AUD/NZD

AUD/USD

CHF/JPY

EUR/AUD

EUR/CAD

EUR/GBP

EUR/JPY

EUR/NZD

EUR/USD

GBP/CHF

GBP/JPY

GBP/NZD

GBP/USD

NZD/JPY

NZD/USD

USD/CHF

USD/CAD

USD/JPY

 

I guest later I will become Indo Investasi version Mr.Loo...........lol

[cubicrey]

my so called "similar method" is to use 1% renko box rather than fixed pip size. I also take currency correlation into consideration. So my method is not 100% mechanical if compare to Michael Loo's method.

 

Steven Nicholson book is "Beyond Candlesticks".

 

MT4 RENKO_2 is not that much different if compare to prorealtime. However, ProRealTime offers something handy feature which can avoid "Guess he is also not watching the chart at the close of the candle but after and mistaken the new brick formed to have been confirmed by the close of previous day candle. caught ya, Loo!"

 

http://lcchong.files.wordpress.com/2010/10/image20.png

 

Hi C old L ion C ountry,

 

R you a heavy smoker or joker..Now I only know that Steve Ni50n is Steven Nicholson. lol...

[digitalman88]

yes, the name should be STEVE NISON

 

Hi C old L ion C ountry,

 

R you a heavy smoker or joker..Now I only know that Steve Ni50n is Steven Nicholson. lol...

[digitalman88]

i also trade many pairs, but be careful not to overtrade.

 

I will upload the csv files, you will receive tonight or tomorrow morning.

 

My friend told me he is actually trading 20 pairs live (not sure true or not), start with min 30K, using IBFX AUS levelage 1:100.

AUD/CAD

AUD/JPY

AUD/NZD

AUD/USD

CHF/JPY

EUR/AUD

EUR/CAD

EUR/GBP

EUR/JPY

EUR/NZD

EUR/USD

GBP/CHF

GBP/JPY

GBP/NZD

GBP/USD

NZD/JPY

NZD/USD

USD/CHF

USD/CAD

USD/JPY

 

I guest later I will become Indo Investasi version Mr.Loo...........lol