Video: Is ATR-Based Renko Really Better? The Truth About ‘Adaptive’ Brick Sizes

Illustration of a smiling bald man with glasses and a corgi wearing a hoodie and glasses, standing in front of a Renko chart with an upward trend line and dollar symbol, representing smart Renko trading strategy analysis.

🟢 Overview

ATR-based Renko charts are often labeled “adaptive”—but do they really offer smarter signals than fixed-size bricks?

In this video, I walk through a direct comparison between ATR-based Renko and fixed-size Renko using side-by-side chart examples, strategy tester results in TradingView, and real-world logic.

If you’ve ever wondered which is better for filtering noise, spotting trends, or building your own system—this is for you.


📊 Backtest Summary: ATR vs. Fixed Renko

MetricATR-Based RenkoFixed-Size Renko
Entry TimingSlowerFaster
Noise FilteringBetterModerate
Trend Reversal SignalSlightly DelayedMore Responsive
SuitabilitySwing tradingDay trading

🧠 Key Takeaways

  • ATR-based Renko isn’t “better”—it’s different.
  • It adapts to past volatility, which can smooth charts but delay signals.
  • Fixed-size Renko gives you predictability and easier rule-based testing.
  • Pro tip: Use ATR for exploration. Use fixed-size bricks for execution.
Side-by-side comparison chart showing the pros and cons of ATR-Based Renko bricks versus fixed-size bricks. Highlights include adaptiveness, noise smoothing, and variable brick sizes for ATR-Based Renko, and consistent size, repeatable structure, and easier backtesting for fixed-size bricks. Illustrated on a chalkboard background with cartoon characters of a corgi and a smiling man.

🛠️ Tools Mentioned


📌 Conclusion

So, is ATR-based Renko really better?

It depends on your goals. If you want to reduce noise and emphasize larger moves, ATR has value. If you want sharper signals and tighter control, fixed-size charts win out.

👉 The smartest approach? Use both. Explore with ATR. Execute with fixed.


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