There are roughly 10 x 4 x 5 x 6 = 1200 4H bars in that period.
This is a number that is very small for statistical analysis purposes. You need to consider a time span where there is at least one primary uptrend and a primary downtrend and extract your patterns from there. In this way you cover both longs and shorts.
I hope the 10K was virtual money because a 90% loss in 10 days/4H bars is a clear indication of overtrading and non-existent risk management. Basically, in 60 bars you lost 90% of your account. Based on your pip stops I will assume that each trade was closed in maybe 2 to 3 bars minimum. I will also assume that you stayed flat for at least 1 bar so this sums up to about 4 bars.
Summary: I estimate that in about 15 trades or less you lost 90% of your account. This is not related to trading technique but to risk management. Your loss shouldn't have exceeded 15 - 20% max drop from high mark.
I risk 0.5% of my account on each trade and in your case that would account to maybe a 10% drop and you would have plenty of time to change/modify system and maybe end up with making a profit.
Risk management is more important that trading system. System may be good but in the process of experiencing a drawdown and if one is overtrading often it is given no chance of recovering.
The period was 02.01.2008- 18.09.2008 and contained 1105 4HR bars (I got the date period wrong in my last post).
Looking at a weekly chart of EURAUD it had been trading in a range for the last 3 years I would have to go back to 2004 to catch a significant downtrend. It has moved very suddenly up recently though most probably as a result of huge volatility recently in the financial markets.
The 10K was virtual money and I was using excessive leverage in order to boost returns for the period of the competition which lasts 3 months but it has worked against me in this case as the trading is fully automated and there is no option to change the parameters of a system once the contest has started. I will bear this in mind for real trading and set a 1% risk limit.
Looking at the trade hsitory of the system, under Account History:
Participant warwickquant - Automated Trading Championship 2008
It looks like some trades were held for 2 or 3 bars but many were opened and closed on the same bar. There were 33 trades with 22 resulting in a loss.
I will extract patterns on a greater timespan, put in proper risk management and forward test the system.