63# Renko Blaster Strategy -Renko with 1-2-3 Pattern Breakout

Submit by Timmy

Renko Blaster Strategy -Renko with 1-2-3 pattern is a simple forex strategy with two levels of interpretation but both respect the renko philosophy in particular Renko with Precision trend and 1-2-3 pattern.

The main reading of the Renko chart is the trend following breakout and this is the principle that guided me to elaborate this trading system. So I use the precision trend history as the trend trend and the 1-2-3 breakout pattern as the entry timing. The system is educational therefore it is set up in a scalar way. In other words, first we practice with the precision trend then the entry signals are the change of direction of the Precision Trend.

The next level is to introduce the 1-2-3 breakout pattern as an entry timing filtered by the precision trend, so we only take positions when the two indicators are consistent or agree.

Box Size 5 pips or higher (for fast day trading), 10-14 pips for day trading, The numbers of the pips of the box size depends by currency pairs. 

This strategy is also suitable with a range bar and Median Renko chart.

Metatrader 4 indicators

Precision Trend (4.0, period 50).

Show 1-2-3.

Renko builder.

Trading Rules Renko Blaster Strategy -Renko with 1-2-3 Pattern Breakout

level 1

Buy

Precision trend  green bar.

Sell

Precision trend red bar.

Level 2

The next level is to introduce the 1-2-3 breakout pattern as an entry timing filtered by the precision trend, so we only take positions when the two indicators are consistent or agree.

Buy

Precision trend green bar.

Pattern Buy. The price closes the first brick above the price of the

brick with number 2.

Sell

Precision trend  red bar.

Pattern Buy. The price closes the first brick below the price of the

brick with number 2.

Exit position

Place initial stop loss below/above the previous swing High/Low.

Profit target ratio stop loss 1:1.5.

This is a winning strategy and the ratio even with a profitability of 40% ensures a positive profit factor if the rules are respected.

But we must also learn to perform it. Reading the chart is simple, but the difficulty of this strategy is placing the order. The advice I propose is to wait for the setup box size to close or to enter a pending order 1 pips above or below the setup box closure (but the pending order although it is a better choice has the risk that the broker places the order before the size setup box is closed.

In the pictures examples of trades

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