I have been trading systems based on this algorithm since 2003, with quite good results.

This system requires a pattern day trading account with a minimum initial balance of $25000.

Results shown use 2:1 margin allowed by C2, but typically, a day trading account can use 4:1 margin. Results can be increased further 50-80% by using 4:1 margin.

Each trade is approximately 50% of the equity so, using 4:1 margin, maximum 8 trades are allowed. If you use 2:1 margin, then 4 trades are allowed.

Short signals can be ignored if your account does not permit shorting stocks (Most IRA accounts).

System signal generation is completely automated. Signals are entered each day when a security moves within some distance towards the entry price.

IMPORTANT!!
Use at your own risk. System does not use stops, but always closes any open positions at the end of the day*
Risk can be controlled further by taking each position equal to 33% or even 25% of the equity.

*FAQ.
Q. I see a few positions that are closed at the next day market open.
A. End of day close orders are always sent at the entry time.
However, sometimes when there is a lot of market activity, C2 servers get overwhelmed, and cannot process orders in time before the market close. In those rare instances, new order has to be issued to manually close the position at the next day market open. This affects only the simulated account as the close at market order is already sent which is supposed to be parked until shortly before market close. I have told C2 about this numerous times, but they have not fixed it yet.
Update 3/18/2011: C2 has allocated more CPU time to this system, so this problem may have been resolved.