Creztor,
Thank you for taking the time to do a backtest. There is nothing wrong with backtesting--it gives a good idea of the potential of the system. The only problem for me with this system is that looking back at the charts, I see more clearly what has happened, and I see why I wouldn't have taken some trades. In live trading I take some trades, and then realize that the long term lines weren't steep enough, and I took that trade prematurely. I guess it takes practice. There is no doubt in my mind that this is a profiatble system. Good luck to everybody.
Also, the Heiken Ashi candles are very misleading, and tricky to follow when you backtest. They usually show better entry/exit prices...anyway I had never used them so I don't understand them .