I attached a image to clarify the system a bit.
Red line = +2%
Orange line is the 30 pip profit target.
Blue line = -2%
Green line is the 30 pip profit target.
1] Price doesn't cross teh red line. No trade.
2] The long bar crosses the blue line. Go short.
Target is not reached on that day.
The next 5 days you have to buy (average) because your target is isn't met.
The 7th day you can take your profits. 6x30=180 pips
However in theory the bar could have given you much more than 30 pips.
At least 90. 6x90=540 pips
3] The trade is entered and the next bar you can take your 30 pips profit.
Again the bar had more to offer. Around 40 pips.
4] No number on the picture. Silly me
You enter the trade with the long bar.
Target is not met during teh day. Next day gives another signal. We average the prices and can sell on the 3rd day. Profit 2x30=60 pips
Again we probebly could get more out of the bar. It's up to you how to trade.
More greedy with more risk. Or go for the sure fire trades.
4] again...
Now imagine we shift the upper line up a bit. say 30 pips.
We now enter closer to the top. Meaning a high probebility we trade at the exchaust. However the next bar won't cross teh red line anymore.
We just get 30 pips now. Is that bad compared to the previous example?
You decide.
-> less profit
-> more certain
-> 1 day less roll over costs
-> not so much funds needed
I hope this is of some use to someone.
I'll stop wasting bandwidth now
