The real question Bronx then is, who is in fact trading during ranges and making money? Since it's not these systems you see on the internet... I wonder...
I think you have a very strong argument for developing a trading system that makes mega-money during ranges and takes minimal hits during trends since we KNOW that the markets range more than they trend...
At least, that's the path I took in my trading career... You see all these wonderful systems and ideas that make money when it's trending, but what you see in real-time is A LOT of up and down, \/\/\/\/\ type moves. So if you KNOW this, why only trade trends or think that the trend is coming that day, at that particular time?
The key is to not get run over during a strong trending move. If you can minimize losses during a strong trend and make some nice coin during ranges, I would argue that you would make MUCH more trading this way vs. a break-out / trend trader; at least on the index futures. Cannot comment on individual stocks.
My personal trading plan profits largely during range bound movements, but has a hint of trend trading with it. Primary goal is to maximize return in range bound or 'choppy' conditions and secondary goal is to minimize losses during trends or with a little luck, come out ahead (usually not that much).
I would like to nominate Bronx's post for post of the year. I don't think TL has a post of the year, but I would like to suggest we have a post of the year contest since the end of this year is soon and then I'd like to nominate Bronx's post for that honor. Why you might ask? B/c this thread has the potential to be the most thought provoking thread on TL. Ever. It could also fall to the waste side as Bronx and I debate the merits of the post.
If you are reading this thread thinking it's a waste of time, you are not there in your trading yet to 'get it'. Hopefully you will. Just do not throw this post aside with the many others floating around TL.