When inventing a (mechanical) entry, during what Kevin calls a limited feasibility test, one wants to see if entry rules have any potential at all, i.e. if the entry is any better than a random entry.
One could add a very simple exit and see how a "system" with this entry performes.
Another possilbility is to plot a "price difference profile", to see if there is any favourable price change after entry and how small it is compared to "noice".
On the plot below, red bars are the average price differences to the entry bar in pips, the blue bars are their standard deviations, divided by 4 for better scaling.
I wonder if anybody here uses this approach? If yes, who's curageous enough to share this plot for what you call a profitable system? (just gray out pips, asset and whatever else is proprietary - I'm only interested to know how much edge is given by entry rules alone, in the real world cases)
kevinkdog, ABCTG and others - what's your experience with price difference profile?