Aplogogies if this has been addressed before but I couldn't find it in the forums.
I'm trying to test a strategy using Renko and have my doubts that the results are accurate. This is the situation which uses BuyStop or SellStop (or Limit) to enter the market:
Long Example using 4 Renko bars:
Bar A forms and is a signal bar to enter the market. Strategy places a buy stop 1 tick over the high of the bar.
Bar B forms and, historically, the Renko bar never forms higher than Bar A, so historically, the order is never triggered. However, in reallity, during renko Bar B formation, the actual price moves 3 ticks higher than Bar A and reverses to close lower than Bar A.
So, in reality, the order was triggered, but historically it shows as a non-trade.
Is this a common challenge when using Renko? Or can I do something different to account for this scenario?
Thanks.
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