Renko Charts – Can You Still Lose Forex Trades Trading Off Renko Charts?

There is little doubt in the mind of Renko Chart enthusiasts that Renko Charts give them a decisive advantage over the rest of the market participants when trading Forex. The early entry into the market at the beginning of a trend, and an early exit when the trend begins to collapse is just two advantages that Renko graphic users have over candlestick and bar tag dealers. However, this does not mean that Renko Chart traders never miss a trade. In fact, quite the contrary.

Having used Renko Charts for almost three years, I can attest that although they have made my trading life simpler and pointed me to many more winning deals than I found. Using traditional charting methods, I still lose the My fair share of Forex trades.

I have said this many times in the past, and will continue to repeat it for the time needed: THERE IS NO SUCH THING as a “Holy Grail” method of trading, in Forex or any other trading venue. Nobody wins every business they take. NONE!

All you can hope for is to find a method, or as in the case of Renko Charts, a form of price presentation that will give you an edge over the rest of the marketers in the market. Forex trading is a zero-sum game. That means that for every dollar you earn in a trade, some other marketer in the market has lost a dollar. This trader could be a small retail trader like the rest of us, or it could be Citibank. Whoever lost this trade does not matter. The real benefit of Renko Charts is that they give you the chance to be the “someone” who earns the trade more often.

But losing business is a fact of life, and any trader who has the desire to build their fortune through the Forex markets would be better accustomed to the idea that there will be winning days and there will be no Days lost when trading Forex. The key to success is to limit your losses on lost days to a handful of pips, and let the winning trades perform as much as possible on winning days, allowing you to maximize your pip gains.

One way to keep your losses at a minimum when trading Renko Charts is to follow the “One Bad Candle and Out” rule. This rule simply means that when you enter a trade, you decide that you will exit that trade as soon as the first candle of opposite color forms and closes. If you are trading a smaller size of Candle / Box (anything under 8 pips) you will probably find yourself getting in and out of trades more often, as price tends to move back and forth within a range of 15 pips on many occasions

However, if you use a larger size of Candle / Box (9 pips or more), you will find that it ends up in many deals of 40 to 100 pips that can take several hours to develop , But you will not see a candle of the opposite color during that time, and as the price finally moves in your direction, the amount of profit you can securely lock with an adjustable stop loss will grow with it.

Forex trading losses are a fact of life, and every single trader in the Forex markets has to deal with them from time to time. Traders Renko Chart simply do not see as many of them as the Candlestick and Bar chart crowd do, and because of the Bad A Candle Rule and Out, Renko Chart traders can limit their size from their loss to just a handful of pips that can easily be Gain back in the next good trade.

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