Renko Breakout

Start with ATR-based sizing (1× ATR-14). Alternatively, for SGX blue chips, try S$0.30-S$0.50. If you see too many reversals (alternating colors), increase brick size. If you miss moves, decrease it.

Think of it this way: If you're in a green brick, price needs to drop 1 brick size just to 'undo' that green brick, then another brick size to actually form a red brick. Hence 2× total movement.

Renko is better suited for swing/position trading since it ignores time. For day trading, you'd need very small brick sizes which can be noisy. Stick to daily timeframe for best results.

Your risk is 2× brick size. If brick size is S$0.30, your risk per share is S$0.60. This is because a reversal requires 2× brick size movement against you.

Simple approach is yes, but you'll get whipsawed in choppy markets. Better to wait for 2-3 consecutive same-color bricks to confirm the new trend before entering.

Plot MAs on the Renko chart (note: MAs will be based on brick count, not time). Only take green brick signals when price is above both 10 and 20 MAs. This filters counter-trend signals.

Fixed uses the same dollar amount always (e.g., S$0.30). ATR-based adjusts with volatility - larger bricks in volatile times, smaller in quiet times. ATR is usually preferred as it auto-adapts.

Trail your stop below each new brick. After each green brick forms, move stop to bottom of the previous green brick. This locks in one brick of profit per new brick formed.

That's normal - Renko ignores time. If price hasn't moved by brick size, no new brick forms. This is actually useful information: price is consolidating. Wait for the next brick for direction.

Large gaps can cause multiple bricks to form at once. This indicates strong momentum. If a gap creates 3+ bricks at once, consider it a very strong signal. Some charting platforms show gaps on Renko.

Monitor reversal frequency. If you see >3 reversals per 10 bricks, double the brick size. Reset when trend improves. Can also use volatility ratio: Brick = ATR × (1 + (Recent ATR / Average ATR)).

Generate Renko bricks from historical data, then execute at actual market prices (not brick prices). Account for slippage between brick formation and executable price. Use walk-forward testing for brick size optimization.

Calculate Renko breadth (% of stocks with green bricks). Above 70% = increase equity exposure. Below 30% = decrease. Size individual positions based on brick count (more bricks = stronger trend = larger position).

Renko ignores time, but options are time-sensitive (theta decay). For options, use Renko for direction but monitor time decay separately. Use longer DTE (45-60 days) to reduce time pressure.

Target brick size that produces 3-10 bricks per major trend swing. Formula: Brick Size = (Average Swing Range) / (Target Brick Count). Or use: Brick = ATR × Multiplier where Multiplier is tuned via walk-forward optimization.