My take...
I back tested this system and it seemed sound. I used 1 hr charts and the EMA setup. For a 1 1/2 day period I had a 163 pip gain.
HOWEVER,
I demo traded this system on a 15 minute chart and it was a total failure. Of 9 positions that met the systems criteria two were profitable at 40 and 50 pips. I had one at 0, and the remaining 6 positions combined at a 505 pip LOSS. I'm glad I demoed it.
Factors to consider are my trading times - I'm in Japan and I trade during the Tokyo Session. It is Monday here. I traded the following pairs:
GBP/JPY
GBP/USD
USD/JPY
AUD/NZD
AUD/USD
Personally, I despise the GBP/JPY. A volatile, unpredictable pair that takes pleasure in defying oscillators and indicators.
Everyone else may be having better success due to their trading times or currency pairs. I don't care for this system, though. I like using support and resistance and this system doesn't place any importance on that. It seems to much like shooting from the hip.
Just my two cents.
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