Riding the waves with Renko Swing Trader

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Last week was brutal for anyone expecting a straight move. Markets began on a down note, rebounded sharply and then got hammered back lower. By the time the dust settled, the Dow Jones Industrial Average had moved at least 1 percent each of the five sessions. Rough going for buy-and-hold investors…

That kind of price action can be rough for investors, but it provided a profitable environment for one of the popular products in our TradingApp StoreSimplemente Dow Jones Renko Swing Trader goes long and short Dow futures (@YM) using a proprietary indicator. The chart below shows some of its bullish and bearish trades from Thursday, April 5:

Simplemente Dow Jones Renko Swing Trader 4/5/18

The first thing that stands out about this product is its use of Renko Bars instead of candlesticks or bars. Renko (similar to the Japanese word for “brick”) charts track price movements by size, drawing a “brick” when the security rises or falls a certain number of points. As a result, the horizontal axis doesn’t show show time intervals.

Interested in learning more? Simplemente Dow Jones Renko Swing Trader
offers a free trial for customers signing up through the TradingApp Store
.

“It lets you see the trends better,” said creator Thomas Nocito of Simplemente Trading. “They go in a straight line, so it’s good for intraday trend following.”

Even though it uses Renko charts, some traditional analyis tools like moving averages, momentum and volume are baked into Simplemente’s proprietary algorithm. “We have several things built into its that confirm each other before it takes a trade,” Nocito explained.

The product is different from many others in the TradingApp store because it has an object-based approach. That means you back-test using the “Statistics” tab on its dashboard instead of the clicking on Data → Strategy Performance Report, as you would with traditional strategies.

Disclosure: Past performance may not be indicative of future results.

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David Russell is VP of Content Strategy at TradeStation. Drawing on nearly two decades of experience as a financial journalist and analyst, his background includes equities, emerging markets, fixed-income and derivatives. He previously worked at Bloomberg News, CNBC and E*TRADE Financial. Russell systematically reviews countless global financial headlines and indicators in search of broad tradable trends that present opportunities repeatedly over time. Customers can expect him to keep them appraised of sector leadership, relative strength and the big stories – especially those overlooked by other commentators. He’s also a big fan of generating leverage with options to limit capital at risk.