Strategies / Trend / Renko Brick Reversal

Renko Brick Reversal: Always In the Market

Renko bricks of 22 are calculated from closing prices, and a run of 2 bricks in one direction triggers a trade that way. An opposite run reverses the position, and a 120 point stop limits each trade.

TrendLong & shortSwingDAX 401 hour

n/aProfit factor

7,477Net profit EUR

35.63%Win rate

5,580Trades

-7,397Max drawdown

1.34Avg trade

Best run of 12. DAX 40, 1 hour, spread 3, from run sweeps:2026-09-24-DAX40-1h-opt.tsv:5.

Entry rules, long

Renko bricks of 22 are built from closes
Members only

Entry rules, short

Sell short when the down run reaches 2 bricks after being at 0 or 1

Exit rules

Members only
An opposite signal reverses the position

Test conditions

Period	Up to 2026-09-24
Instrument	DAX 40, 1 hour
Spread	3 points
Contracts	1
Starting capital	1,000,000
Costs	Spread only. Commissions and overnight financing are not included.
Bars	Up to 200,000 bars, fewer where the instrument has less history
Last tested	2026-09-25

Parameters

positionSize Contracts per trade	1
brickSize Renko brick height in price units	22
minBricks Bricks in a row that confirm a move	2
firstBar Bar on which the Renko grid starts	1
stopLossPoints Protective stop, points	120

Every run

Markets and timeframes tested

Market	Timeframe	PF	Trades	Win %	Net	Max DD
DAX 40Best run	1 hour	n/a	5,580	35.63	7,477 EUR	-7,397
Silver	10 min	n/a	1,579	37.24	35,492 USD	-19,806
DAX 40	4 hours	n/a	3,349	36.10	15,129 EUR	-5,755
US Crude Oil	4 hours	n/a	2,814	35.22	11,395 EUR	-8,142
Nasdaq 100	10 min	n/a	5,524	36.51	5,698 EUR	-4,779
Gold	4 hours	n/a	249	39.36	2,216 EUR	-786
Gold	5 min	n/a	254	37.40	2,112 EUR	-1,305
Gold	30 min	n/a	322	37.89	2,009 EUR	-1,575
Gold	10 min	n/a	270	37.04	1,866 EUR	-1,272
Gold	15 min	n/a	277	36.82	1,799 EUR	-1,465
Gold	2 min	n/a	222	33.78	1,749 EUR	-1,387
Gold	3 min	n/a	241	36.51	1,582 EUR	-1,443

Charts

Results by run

Net profit against max drawdown

Net profitMax drawdown

The code

ProBuilder, rewritten to house standard

Every file in the library uses the same header, the same section order and the same variable names. The numbers above were produced by the original version before the rewrite, and the rewrite has not yet been compiled in ProRealTime.

// ============================================================
// Renko Brick Reversal
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Trend
// Direction: Long & short
// Timeframe tested: 1 hour
// ============================================================

// --- Settings ---
DEFPARAM CumulateOrders = false

// --- Parameters ---
positionSize = 1          // contracts per trade
brickSize = 22            // Renko brick height, in price units
minBricks = 2             // bricks in a row that confirm a new move
firstBar = 1              // bar on which the Renko grid starts
stopLossPoints = 120      // protective stop, in points

// Renko state carried from bar to bar.
ONCE gridStarted = 0
ONCE bricksUpTotal = 0
ONCE bricksDownTotal = 0

// --- Indicators ---
// Build Renko bricks from closes. round(x - 0.5) floors x to whole bricks.
IF BarIndex >= firstBar THEN
  IF gridStarted = 0 THEN
    upBrick = close
    downBrick = close - brickSize
    gridStarted = 1
  ENDIF

  longSignal = 0
  shortSignal = 0

  IF close >= upBrick + brickSize THEN
    newBricksUp = (round(((close - upBrick) / brickSize) - 0.5))
    moveUp = newBricksUp * brickSize
    downBrick = downBrick + moveUp
    upBrick = upBrick + moveUp
    bricksUpTotal = bricksUpTotal + newBricksUp
    bricksDownTotal = 0

    // Signal when the up run reaches minBricks for the first time.
    IF bricksUpTotal[1] < minBricks AND bricksUpTotal >= minBricks THEN
      longSignal = 1
    ENDIF

  ELSIF close <= downBrick - brickSize THEN
    newBricksDown = (round(((downBrick - close) / brickSize) - 0.5))
    moveDown = newBricksDown * brickSize
    upBrick = upBrick - moveDown
    downBrick = downBrick - moveDown
    bricksDownTotal = bricksDownTotal + newBricksDown
    bricksUpTotal = 0

    IF bricksDownTotal[1] < minBricks AND bricksDownTotal >= minBricks THEN
      shortSignal = 1
    ENDIF

  ENDIF
ENDIF

12 more lines: the entry and exit rules.

Read this first

Known weaknesses

On DAX 40 1 hour the drawdown of EUR 7,397.00 almost equals the EUR 7,477.00 net profit, so the equity path is rough.
The average trade is EUR 1.34 over 5,580 trades, which leaves little room for commissions (not included).
The brick size of 22 and the 120 point stop are fixed in points, so they fit some instruments far better than others.
Only sweep data exists, so profit factor was not recorded.

Indicators used

Renko

How to load it

Copy the code with the copy button above the code block.
In ProRealTime, open a chart of the instrument and timeframe you want to test, then open ProOrder > New trading system and choose "Create with programming".
Paste the code, give the system a name and save it.
Click "Backtest", set your own spread and position size, and run it before you consider trading it live.

Questions

About this strategy

Does it work with ProOrder?

Yes, it trades 1 contract and flips between long and short on each opposite brick run. The code has not been compile checked since the rewrite.

Where was it tested and how did it do?

All 11 other runs were profitable. Silver 10 minutes made USD 35,492.00 with a USD 19,805.50 drawdown, and DAX 40 4 hours made EUR 15,129.20.

How much capital does 1 contract need?

On DAX 40 1 hour the maximum drawdown was EUR 7,397.00. Budget for that on top of your broker margin.

Why a 1 hour chart for the main run?

Bricks are built from closes, so the chart timeframe decides how often they update. On 1 hour bars the 22 point bricks form at a pace that matches DAX swings.

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