Renko bar did not print and moving average fakes

waym77 since: 22 Jul 2021;

  22 Jul 2021, 12:51
Renko bar did not print and moving average fakes

Good morning,

I am testing a cBot that uses Renko and a Fast/Slow moving average crossover, but I am experiencing some interesting irregularities which I have questions about.

First of all, this is being run on an IC markets demo account that includes spreads and commissions. The Renko is 5 pips and the pair is GBPCAD.

In the attached image, the blue horizontal line denotes the bot's entry into this position (the spread was 0.0 at the time). This entry is correct according to the system, where the Purple EMA crosses below the Green.

The Red diagonal line is the deal map in this context. The bot sold at 1.72700 and bought back at 1.72804. The stop loss for this position was at 1.72800 (Lime green horizontal line), which is 10 pips. 

The position closed at 1.72804 (Red horizontal line), which is 10.4 pips. There was a 0.4 pip slip on the SL (which is fine under the circumstances), but the real question is: 

Why did the green Renko bar not print? Price had reached 0.4 pips higher than the price which should have created the green bar, but it did not. Instead, the price went down and if you look at the bars now, it looks like my stop loss should never have been hit?

Please advise regarding this. I have also attached a screenshot of the position ID and other info if necessary.

Regards,

Spotware's avatar

Spotware since: 23 Sep 2013;

  22 Jul 2021, 12:57

Hi waym77,

Renko bars are formed by bid prices. Sell positions are closed by Ask prices. Probably the Bid price never reached above 1.72800.

Best Regards,

Panagiotis 

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waym77 since: 22 Jul 2021;

  22 Jul 2021, 13:51
RE:

Spotware said:

Hi waym77,

Renko bars are formed by bid prices. Sell positions are closed by Ask prices. Probably the Bid price never reached above 1.72800.

Best Regards,

Panagiotis 

Join us on Telegram and Facebook

Thanks for the reply, it makes sense now why this happened!

On to attempting to fix this, which has led me to another question:

Is there a way I can get the Renko to be calculated via (Bid + Ask) / 2?

Or if this is not possible, would it simply be best to widen the Stop to 11 pips?

PanagiotisCharalampous's avatar

PanagiotisCharalampous since: 13 Jan 2017;

  22 Jul 2021, 14:09

Hi waym77,

Is there a way I can get the Renko to be calculated via (Bid + Ask) / 2?

No that is not possible

Or if this is not possible, would it simply be best to widen the Stop to 11 pips?

What problem are you trying to solve here? Why do you need to change the way you trade the Ask prices based on what the Bid prices do?

Best Regards,

Panagiotis 

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Head of Community Management at cTrader

waym77 since: 22 Jul 2021;

  22 Jul 2021, 14:40
RE:

PanagiotisCharalampous said:

Hi waym77,

Is there a way I can get the Renko to be calculated via (Bid + Ask) / 2?

No that is not possible

Or if this is not possible, would it simply be best to widen the Stop to 11 pips?

What problem are you trying to solve here? Why do you need to change the way you trade the Ask prices based on what the Bid prices do?

Best Regards,

Panagiotis 

Join us on Telegram and Facebook

Hi Panagiotis,

The problem I'm trying to solve is that the Sell trade opened correctly but hit my stop loss before continuing with the downward movement. If I had widened this stop to 11, the ask would not have reached my Stop. Since the green bar did not print, it means the bid never reached the Stop, and the ask barely did. The spread between these two is what caused this unnecessary stop loss.

PanagiotisCharalampous's avatar

PanagiotisCharalampous since: 13 Jan 2017;

  22 Jul 2021, 14:56

Hi waym77,

You can also consider changing the trigger method and trigger your stop loss on bid prices.

Best Regards,

Panagiotis 

Join us on Telegram and Facebook

Head of Community Management at cTrader