Doctor Leo
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This system had been originally designed as an intermediate step in my investigations workflow, so let's consider it as a side-product which survived the lab. 
The system is based on too-well-known double tops and double bottoms patterns, the only difference is that it's completely formalized, there's no room to guess whether it is a pattern or not.
Here you are, in just 5 steps.
1. Let's call an upper cardinal point the following high:
h(-2) < h(-1) < h(0) > h(1) > h(2),
where h(i) represent highs of consequent bars, h(2) is the high of the last closed bar, thus h(0) is the upper cardinal point 2 bars ago (they are always two bars behind).
2. Respectively, a lower cardinal point conforms to the following formula:
l(-2) > l(-1) > l(0) < l(1) < l(2).
3. Now let's find one of the following patterns: a) a lower cardinal point between two upper ones or b) an upper cardinal point between two lower ones in strict consequence.
4. As we've found a pattern we place a stop sell order at a small distance below the lower cardinal point (case 3a) or a stop buy order at a small distance above the upper cardinal point (case 3b). We place stops at the highest of upper cardinal points (case 3a) or at the lowest of lower cardinal points (case 3b).
5. We move stops at new upper (case 3a) or lower (case 3b) cardinal points as they appear.
That's all. I've been trading this for a bit more than half a year quite successfully, although I should notice that I used some additional rules, for instance I was filtering out some entries if a stop would become greater than a pre-defined critical level, or did something else, but even in its vulgar purity the stuff described above just works. Suppose it could be of some use for, say, beginners.
Eh, almost forgot - I'm trading only FOREX, so I do not know if this works with other instruments, would be pleased to hear about it.
The system is based on too-well-known double tops and double bottoms patterns, the only difference is that it's completely formalized, there's no room to guess whether it is a pattern or not.
Here you are, in just 5 steps.
1. Let's call an upper cardinal point the following high:
h(-2) < h(-1) < h(0) > h(1) > h(2),
where h(i) represent highs of consequent bars, h(2) is the high of the last closed bar, thus h(0) is the upper cardinal point 2 bars ago (they are always two bars behind).
2. Respectively, a lower cardinal point conforms to the following formula:
l(-2) > l(-1) > l(0) < l(1) < l(2).
3. Now let's find one of the following patterns: a) a lower cardinal point between two upper ones or b) an upper cardinal point between two lower ones in strict consequence.
4. As we've found a pattern we place a stop sell order at a small distance below the lower cardinal point (case 3a) or a stop buy order at a small distance above the upper cardinal point (case 3b). We place stops at the highest of upper cardinal points (case 3a) or at the lowest of lower cardinal points (case 3b).
5. We move stops at new upper (case 3a) or lower (case 3b) cardinal points as they appear.
That's all. I've been trading this for a bit more than half a year quite successfully, although I should notice that I used some additional rules, for instance I was filtering out some entries if a stop would become greater than a pre-defined critical level, or did something else, but even in its vulgar purity the stuff described above just works. Suppose it could be of some use for, say, beginners.
Eh, almost forgot - I'm trading only FOREX, so I do not know if this works with other instruments, would be pleased to hear about it.
