TEMA Cross on Renko Candles — Strategy by Gesundheit
By Gesundheit
Performance Metrics
- Author: Gesundheit
- Symbol: POLONIEX:BTCUSDT
- Timeframe: 1 minute
- Net P&L: +44,206.26 NONE (+44.18%)
- Win Rate: 82.4%
- Profit Factor: 11.059
- Max Drawdown: 36,853.35 NONE (33.86%)
- Total Trades: 392
- Sharpe Ratio: 0.468
Description
Renko candles filter out noise by plotting a fixed change in price rather than a fixed time frame. Strategies like MACD or MA cross can give a lot of false signals when the price is wavy, but not actually going anywhere. This is especially a problem with small time frames.Since it's so easy to identify trends on a Renko plot, this strategy uses a simple moving average cross idea. Instead of an EMA, we use a TEMA (triple exponential moving average) because that version does not lag as much. We also will avoid buying when the price is above a longer-term smoothed moving average. This means we will hopefully reduce bags, but we will also miss some trades.Also included areavg_protection -- if >0 only buy when it will bring down our average price, else buy whenever the TEMA crosses over the short-term SMAgain_protection -- if >0 only sell when we meet out min_gain %, otherwise sell whenever TEMA crosses under the short-term SMAI've been setting my Renko candles to a fixed range instead of ATR, and I use increments of roughly 0.1% in the example chart.