Crazy system to trade gbp

[paco246y8]

I'm not sure that posting a new thread is the right way of asking for an expert.

I'm a programmer anyway, but I don't seem to be very good programming experts, as I don't get anyone working 100%, whether profitable or not.

This idea has been rounding my mind from around 4 years right now. I always have thought it is crazy, but after watching firebird working, I think now it maybe has more sense than it seems.

All of us have seen lots of times stochastic (any parameters) signalling an oversold or overbought market. We all know that if we trade it, result is not certain. We may get a win, we may get a loss, or we may get a breakeven, depending on the management of the trade and the market action.

What I want is to take that probability away and trade as follows:

- Wait for a small bar to be oversold or overbought in the european or american sessions at gbpusd m5 bars. The small bar has to be bigger than 6 pips range and less than 13 pips range.

- Buy over its high and sell over its low, no matter if the market was oversold or overbougth, whichever side is broken first.

- Put a target for the trade equal to 30 pips. Trailing stop at 20 pips once 20 pips are achieved.

- Use the non-broken side as stop loss.

- When we are stopped out, WE ENTER THE ORDERS AGAIN IN THE SAME BAR BUT WITH DOUBLE THE AMOUNT TRADED ON THE LOSS. WE REPEAT THIS AGAIN UNTIL WE HAVE A CLOSED PROFIT.

Example: 2006-09-18 at 07:00 IBFX time, inside european session, M5 bars, the bar has OHLC= 1.8833 1.8840 1.8831 1.8831, that is to say, a 9 pip range. The first breakout is on its low, we trade short and get the profit.

Example: 2006-09-18 at 11:10 IBFX time, inside european session, M5 bars, the bar has HL= 1.8747 1.8740, that is to say, a 7 pip range. The first breakout is on its low, we trade short and the market never went 20 pips down. Then when the stop loss is taken, instead of just taking the loss, we reverse the trade to go long with double the initial amount. Later on we take our profit of 30 pips.

Notes:

Any stochastic is valid
Any market is valid as long as you adapt the parameters of the trade
Any timeframe is valid as long as you adapt the parameters of the trade
Don't trade the same market after 6 loses on the same day
Use a small portion of your capital. I think 0.5% of the account is perfect for the first trade.

Hope I didn't forgot anything.
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Paco.
Before God we are all equally wise - and equally foolish. Albert Einstein