Renko bars and back testing strategies

[waterman]

I have a strategy that works just ok on regular minute bars.....but when I switched to Renko bars it showed losing 82% of the time and losing $30k+ in the last 5 days!
When I run the Renko with the strategy in real time it starts making a small amount of money again. My question is...can I somehow capitalize on this in any way.??
Can I reverse the buy / sell logic in the program and somehow adjust it for how the backtester reads Renko bars in the backtest? It would be nice to make that
$30k !

[NinjaTrader_Jim]

Hello waterman,

Thanks for your post.

Backtesting uses OHLC values from the bar to simulate order fills and actual market movement is not used. Renko Bars also change the open of the bar, which cannot be simulated with historical data. Therefore, it is generally not advised to consider Renko backtest results as being reliable. You could use Market Replay data in the Playback Connection and run the strategy there so it is simulated as if it it were running with realtime data, which will show more accurate results.

You are certainly able to adjust your strategy's trading logic so it can capitalize on more trading opportunities that you find. This takes care to make sure that the new trading logic suits your needs, and generally cannot be done by simply reversing the buy/sell logic. We should also note that our Support team cannot offer any trading advice for how a strategy should approach a trading opportunity, but we certainly can assist with technical questions on the software.

Playback Connection - https://ninjatrader.com/support/help...connection.htm

Please let us know if we can be of further assistance.

[waterman]

in backtest...using Renko...is the bar created first...and then the strategy goes back and creates a buy or sell after the fact?

[NinjaTrader_Jim]

Hello waterman,

Backtesting is simply processing historical data, and the chart data is loaded before the strategy processes it. The data is loaded, bars are built historically (not built by streaming tick data,) and then the strategy logic processes this data bar by bar.

If you have any additional questions, please don't hesitate to ask.