Renko Bars.

[Trader17]

Can Renko Bars be used in a Strategy like regular bars? Because running a strategy live in Sim gives different results than in a back test using Renko on the same period.
Thank you.

[NinjaTrader_PaulH]

Hello Trader17,

Thanks for your post.

Backtesting with Renko bars can lead to misleading results because the Renko bars finished form does not reflect the actual movement of price that occurred while each bar is formed. This is because historical data only consists of the OHLC data of the final bar and not of the ticks that made up the bar. You would be able to test your strategy on Renko bars with the Playback connection and using replay data which will cause the bars to form in the same manner as live.