Wavestrength-feedback on this trading system. Does it work? Is risk actually reduced?

Answer 1

you can reduce your risk with any stock by using stops/limits/trailing stops/straddles/saddles...

as far as "wavestrength" feedback; most trading systems that rely on charts/stochastic analysis/indicators...do not do particularly well in a flat or choppy market...their indicators "overread" and overemphasize relatively minor movements....
most do a decent job when the market is in a predictable pattern...either bear or bull...but a steady direction...