[SebForLiberty]

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Therfore when i look at a method, to know if this method is effective, i simply look at the success of people who use it.. . . .

Hi Seb, welcome. That question is relevant if you were putting money into a fund which he runs. On the other hand, the question we face as individual punters is not what someone else has done, but whether we can implement the stage analysis concept and make money from it. You have to look back over some shares which have broken into stage 2 and say would I have been able in practice to get an entry, what would the risk be, and would I have been able in practice to exit at a suitable price.

This is also relevant is you wonder if using his system is a good idea.
If the inventor of this system didn't succeed, then i don't see how i could succeed with his system.
And for example, it has been proven by backtest that the CANSLIM system doesn't work, so even if the idea looks interesting and IBB is a successfull business (in selling news letter, not managing money...that's my point), i wouldn't use it.
If a trader is really good, why not manage billions in the order to collect management fees ?
However a possible answer could be that he is very good trading small or micro caps, like i do, which isn't possible with a big capital.
If i remember well, that's the issue Jesse Livermore faced at a point in his life of trend follower.
About your back testing idea, that's exactly what i do with a friend, but it's always easier when you already know what happens next.
But again i'm deeply convinced that it's a good strategy, in worst case it won't beat the market, i'm just wondering if he really succeed a lot, it would give me more motivation.
Also i think that this kind of strategy is especially good to reduce risk (drawn down), which doesn't necessary imply that it beats the market on the long run.