Maybe you should try testing this system from August 2008 through January 2009 when the GBPUSD had a strong downtrend.

I was only concerned about the stop being 4 times the target, but from Lyall's last post it seems he is now using a 30 pip stop and 15 pip target. I did a little testing on a trade simulator with the 40 pip stop and 10 pip target, and the results ...

Only had my usdcad long order hit today for +10 pips. 4th winning day in a row. This sure is easy, but I'm just not sure how sustainable this would be in the long term.

TP=10pips, SL=40pips

Had 5 wins and 1 loss today for +10pips. Third winning day in a row. I'm still not quite sure why this works, maybe this system takes advantage of momentum pushing through support or resistance? Is that the edge?

I did not have my usdjpy orders hit yet. What I think Lyall does is place orders at dots that have a zigzag line before and after the dot. I started demo trading this last night and have 4 wins no losses.

Just read Lyall's posts again and realized that you are placing buy and sell orders at the same points. I did my test by placing sell orders at the high point and buy orders at the low point, kind of like a countertrend scalp. Oh well, I'll do more ...

Just did a quick test using a trade simulator for the month of June on eurusd, 17 wins and 1 loss for a total of 130 pips. Not bad for just 2 minutes of trading per day! Lyall, what time of day do you place your orders?

In your audjpy pending setup, could the candle before the one marked "Day 1 High" have been considered a day 1 high? It looks like it would have been stopped out if played that way. Thanks.

I started doing some manual backtesting of this strategy and it looks good so far, but there are a few trade setups that looked like they could go either long or short. Can't wait to see the update! Thanks JusTradeFx!

JusTradeFx, In the first trade in your eurjpy example, it looks like you did not wait for a blue candle (open less than close) before placing a buy order. Am I correct? Also, do you use any trend filter? Thanks!

Ok, sorry. Could you please show us some example trades?

Interesting strategy. I was wondering if you made a typo at number 3 for your short and long entries. Should it be go short no more than 30 pips from yesterday's LOW, and go long no more than 30 pips from yesterday's HIGH? How far back have you ...

Sam, Have you been using the same major levels for the past 2 years? Do you ever change them? For example if you had a long losing streak, do you look back at the charts and try to find levels that would have worked better? I was also wondering if ...

I just finished backtesting EU from August 28, 20009 through September 1, 2010 using major levels only on 4hr chart. My result so far is 65 wins and 54 losses. A couple of the wins were about 2 times normal due to weekend gap. I like these results ...

I like this system. Only need to look at charts a few times per day which is great for me. I started manual backtesting of EU using major levels only and so far win rate is 58%. I'm not sure why this system works, maybe because it takes advantage of ...

Here is a link to one of Steve Primo's webinars in which he explains his definition of the engulfing pattern: url Some others use the definition of engulfing as a candle which has both a lower low and a higher high than the previous candle. In ...

My data must be bad, it froze again and had over 3,000 mismatched chart errors. Maybe we should just stick with manual backtesting?

Thanks, I think I get what you mean. So in my case, I would look for buy/sell line set-ups on the weekly (above/below 50sma and engulfing or type 2 price action) and then wait for the daily chart to show an engulfing or type 2 set-up for my entry?

Hi 60minuteman, thanks for the input! I wish I had the time to even trade the 4 hour charts but for me that would be pushing it. I would love to enter on those lower time frames though. Please feel free to post here anytime!