I had a v brief look at your system, makes logical sense to me (i don't like MAs though, but that's me). I would ignore everyone here and commit yourself to rigourous back testing to see if it really has merit. So don't trade it, spend time looking at charts and do a thorough back test BY HAND not machine. Also be very hard nosed about costs, entries and exits. Consider this: say your bar is 10 ticks wide. However your entry is 1 tick beyond this and say your stop loss is 1 tick as well beyond the bar. Your risk is 12 ticks, not 10. And this is before any commissions or the (ludicrous) spreads applied by your SB company! Something similar with your profits! You may think in your mind you are looking at a trade which gives you 2:1 reward/risk, but really it might be 1:1! To overcome this, you will need big targets and (probably wider stops) and low costs. edit: test it on futures as well.
Your post doesn't make sense, his system (i've only looked at it briefly) is essentially following a trend on a dip. If you are right about indices being more trending then his system would be ideal for index futures etc.
I have always assumed that when someone say's they're using a mechanical system or automated system that there was rigorous testing (backwards, forwards and anything else). It's just tough for me to imagine someone using a mechanical system or automated system without testing it prior to any real money trading considering the testing is done by the computer and can easily be simulated traded prior to throwing hard earned cash at it in trading live. I wish more traders will listen to this and apply it. Too many losing traders and profitable traders underestimate the real cost of trading until the end of the year or income tax time. Gotta treat trading like a business and understand that there are business costs of trading that's sitting out there waiting to stick its hand in our pockets after the broker commissions and spreads.
Mechanical systems are cool if your risk reward is good enough.. If i lose two or three times knowing that one win will bring me back to breakeven or show profits.. Then im cool with the mechanical system.. Here's an idea that most people don't do.. Trade two systems! A lot of people are just stuck on trading or relying on one system.. Remember you said "my system keeps on throwing up long signals so I have no choice"? Well now you have a choice..
You are right, it is not a bad idea to trade 2 or a few systems. But the OP is currently just trying to get 1 system that works well. Two suboptimal systems do not add up to anything other than mediocrity.
I agree with you 100 percent... but my main goal was to have the OP think outside the box... Trading isn't black and white.. There are many ways to skin this cat..