I think he tried to demonstrate it once before, with a recent set up in the S&P500. It turned out to be a failure. The market paused for a bit, and continued up on it's marry way.
It may help if the OP were to post a description of these rules. Then we could see them in action. One call going bad isn't enough to condem a system, when we are in an industry where successful traders are only right like 50% of the time.