The forex strategy «DeMa (RENKO)», as the name suggests, is based on the RENKO chart. We have not published such strategies for a long time, although they often turn out to be quite effective. The indicators in this trading system are standard and there is nothing new in them, however, this system is very effective and will suit active traders well.
Statistics:
From June 2019 to June 2020, this system showed a rather significant positive result of +3350 points. However, the authors indicated an average result of 100 points per month. It is also worth noting that, by and large, in the main time, the system behaved within the average indicators that were indicated initially, but at the time of a sharp increase in volatility, the activity of the strategy increased greatly. Of the indicated 3350 points of profit, only for March, about +1700 were received!!!
- Currency pair — USD/CAD.
- Brick size 10 points.
Indicators:
- The indicator is a smoothed moving average with a period of 30 and with added levels of 60 and -60. Will apply to Median Price (HL/2).
- DeMarker indicator with a period of 14.
Conditions for buying according to the DeMa (RENKO) forex strategy:
Option 1
Any upward price crossing and brick closing above the moving average, provided that the DeMarker indicator is in the range between 0.7 and 0.3 levels, is a buy signal.
Option 2
The price is above the moving average and rolls back to it from above. If there was a touch to the moving average and the next brick closes with a white body, provided that the DeMarker indicator is in the range between the levels of 0.7 and 0.3, then this is also a buy signal.
Option 3
1) The price is above the moving average.
2) There is a rollback, inside which there are at least two black bricks in a row.
3) Immediately after that, two more bricks with a white body are formed.
4) The DeMarker indicator is in the range between 0.7 and 0.3 levels.
Option 4
1) The price is below the -60 level.
2) Another brick closes above -60.
3) The DeMarker indicator is in the range between 0.7 and 0.3 levels.
NEXT for all options:
4) Stop loss is set in the amount of 3 bricks + spread.
5) Breakeven size — two bricks.
6) If the deal is not in breakeven, then any closing of the next brick below the moving average is a signal to close the deal.
7) Take profit 6 bricks (60 points).
8 ) With the fourth entry option, it is possible that a sell signal will be generated after the entry. In this case, the purchase should be closed.
Sell trade options:
Option 1
Any price crossing from top to bottom and closing of a brick below the set moving average, provided that the DeMarker indicator is in the range between 0.7 and 0.3 levels, is a signal to make a sell deal.
Option — 2
The price is below its moving average and rolls back to it from below. If this moving average touches and the next brick closes with a black body, provided that the DeMarker indicator is in the range between the levels of 0.7 and 0.3, then this is also a signal to open a sell trade.
Option — 3
1) The price is below the moving average, which is set on the chart.
2) There is a rollback, inside which there are at least 2 white bricks in a row.
3) Immediately after that, 2 more bricks with a black body are formed.
4) The DeMarker indicator is in the range between its levels of 0.7 and 0.3.
Option — 4
1) The price is above its level 60.
2) The next brick closes above level 60.
3) The DeMarker indicator is in the range between its own levels of 0.7 and 0.3.
NEXT for all options for sale:
4) A safety stop-loss order is set in the amount of 3 bricks + the spread value.
5) Breakeven size — 2 bricks.
6) If the trade is still not at the breakeven point, then any close of the next brick above its moving average is a signal to close the trade at the current price.
7) We fix the deal at a take profit equal to 6 bricks (60 points).
8 ) With the 4th option for entering a trade, a situation is possible when, after entering a trade, a signal to buy will be formed. In this case, the sale must be closed.
Video version of the DeMa (RENKO) forex strategy:
- Recommended to watch with English subtitles!
- Download MT4 template — dema-shablon (archived).
- I do not attach indicators — they are standard.
- To build a Renko chart, use the link ➜
