No, the system is mathematically sound.
If someone makes a loss then he must have done something gravely wrong, or a black swan event must have happened.
Test the system in a 24/7 liquid continuous market w/o any gaps and it will give the said PnL.
It is up to the trader to find such an environment. The text clearly states this. It is possible to monitor the position 24/7 by using multiple exchanges around the globe where the stock gets traded, ie. emulating a near-24/7 continuous market.
Investment houses and banks have such an environment by default, so they can apply the system much easier because they already have such an infrastructure.
But Average Joe can have it too by using a broker like IB to access multiple exchanges around the globe.
As stated clearly, it is up to the trader to apply the system in a near-24/7 continuous market.
no such thing as a 24/7 liquid continuous market....took me all of 2 seconds to disprove your model as a piece of shit.
Also index markets gap. How? Because they do not trade 24/7.
Also, you would not need a Black Swan even to have losses, just a normal unexpected move which happens several times a year.
Also....you stated you have only tested this in theory with invalid assumptions and have nto actually tried to test this because you are too poor.
So since your assumptions are invalid, your theory are invalid. In the real world we call this modeling- shit in, shit out
If you put Chipotle in your body, you expect yellow mud to come out.