Breakouts

What is better, indicators or trend lines, what has better results for an auto trading system? I have tried, as many others have, to use indicators to buy and sell Forex. It works about half the time. Why not just use a random number generator to trade then? What about breakouts?

Look at a 5 or 15 minute chart, how far is 10 pips in relation to the average bar length. How hard can it be to make 10 pips? It's harder than it looks. My next system involves breakouts and trend line trading. Here's the idea;

I set the chart up with 1 to 4 lines, when the line is crossed it trades, setting stops and targets, and gets locked out until I reset it. I can use horizontal or sloped lines to do this in Amibroker (AB). The code I have done so far works OK. I'm amazed how how simple the code was to do this. The "system code" is very small compared to the auto trading interface code need to talk from Amibroker to TWS via the IBcontroller. I'm waiting for the bugs to show themselves. I was surprised when I was testing this, I would trigger it to test signals and next thing I know I'm hitting the profit target of 10 pips.

I can't find many others that have coded this or auto trade this way, I searched with Google and found very little. The AB Knowledge Base doesn't have much either. If you trade Forex this way I'd like to chat via email, drop me a line. Email link is at the top of this page.