DislikedI have already backtested a similar support/resistance idea. I buy when the price touches a specific resistance at least 3 times and then breaks that resistance.
Results after almost 1000 trades? - 810 pips (loss of 810 pips).
Then I did the reverse, I sell instead of buying, results?
As you see, this seemingly logical idea is a losing trading idea both ways, at least in this particular backtest (we can reasonnably assume that the +179 pips is due to chance alone).
Note that this idea of buying a breakout is a losing idea, doing the reverse (fading the breakout) seems to be working "better". As I said before, most brilliant and "logical" trading ideas end up losing big, while counter-intuitive ideas (like fading a breakout) seem to be doing much better, or at least break even.
In your case your system could work IF and only IF you are drawing the "right" trendline all the time, a herculean task to say the least.Ignored