This one:
http://www.forexfactory.com/showthread.php?t=38981
In a nutshell, go long if you've had 3 days up; short if you've had 3 days down. Put stop behind yesterday's candle or 90 pips (whichever is less).
The stop distance can be adjusted....TP at 30 pips for half your lots, let the rest run (not sure how long).
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Check out Toby Crabel's book "Day Trading With Short Term Price Patterns and Opening Range Breakout"
He also uses the idea of volatility expansion/contraction coupled with bar patterns. Very good stuff.
Linda Raschke also likes volatility expansion/contraction (and also likes Crabel). "Street Smarts" by Raschke/Connors.
Price patterns are very easy to backtest and some do in fact give a statistical edge. Coupled with filtering conditions like NR7 (narrowest day in the last 7) it can be improved even more.
By the way, I also forward tested Sedona with similar results. Looks good on paper but didn't cut the mustard in real life.
I've tested a few breakout systems, mostly based on daily data. One is outlined here:
http://londonsession.blogspot.com/2007/06/system-introduction.html
I've also tried simple range expansion with similar results. Testing results for the new system have been mixed. I tested:
go long/short when the pair prints 2 bullish/bearish daily bars. Trying various stop and limit settings, the only pair to be nicely profitable was GBP/JPY.
The next idea to try is n-day high. The NR7 filter is interesting as well. I think I'll try that as a filter to a regular breakout system.
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