Cowabunga System Daily Update: 02/02/07

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Main Trend

Current Trend= Trend remained up for the entire day

Today I only looked for long trades

Today’s Surf

7:45 pm ET- There was a moving average crossover for a long trade. RSI>50, Stochastics were trending up, and MACD was negative and gaining value. This is a valid entry. Entry was at the close of the candle which was at 9673 with a stop at the most recent swing low which was at 9664. Since the entry was before midnight I decided to set my initial target for the same amount of pips I was risking. However this is only a 9 pip target and if you factor in the spread, that isn’t big at all. I decided that I would trail my stop once the initial target was hit and go for 9700.

8:00 pm ET- I am stopped out of my trade.

9:30 pm ET- There was a moving average crossover for a long trade. RSI>50, Stochastics were trending up, and MACD was negative and gaining value. This is a valid entry. Entry was at the close of the candle which was at 9669 with a stop at the most recent swing low which was at 9663. Since the entry was before midnight I decided to set my initial target for the same amount of pips I was risking. However this is only a 6 pip target and if you factor in the spread, that isn’t big at all. I decided that I would trail my stop once the initial target was hit and go for 9700.

1:45 am ET- I am stopped out at breakeven.

4:30 am ET- There is a moving average crossover for a long trade but RSI is not greater than 50. No entry.

4:45 am ET- RSI crosses above 50 and the rest of the criteria is still met. I enter long at the close of the candle which is at 9671 with my stop at the most recent swing low at 9654. Since this signal was after midnight and because I was 29 pips away from a 00 level, I decided to set my target for 9700.

8:15 am ET- NFP is about to come out in 15 minutes. The price shoots past my target and because I know that I’m about to exit my trade anyway I try to exit at as high of a price I can. I ended up getting out at 9720.

8:30 am ET- NFP is released. I am already out of my trade.

Trade Result: -9, +0, +49= +40 Pips; R-Multiple= 2.88

  • Hoka

    How u got stopped out with zero losses in the 2nd trade …. u did it manually before reaching stop losses lvl or what?

  • cosgrove

    Great discretionary exit there! I realize the system trades on 15 minute bars, but did you go down to a shorter time frame to try to plan out your exit or what? Price didn’t hit the 20 level until 8:29 on my chart (which I realize is still the 8:15 bar :D) — did you just decide to hold it until the last minute?

  • cosgrove

    Great discretionary exit there! I realize the system trades on 15 minute bars, but did you go down to a shorter time frame to try to plan out your exit or what? Price didn’t hit the 20 level until 8:29 on my chart (which I realize is still the 8:15 bar :D) — did you just decide to hold it until the last minute?

  • philtong

    thx for your hard work, i try to do the 4 hr set up and notice that the open and close time for each bar is different from yours. e.g. yours from 15:00 to 19:00 and mine are from 16:00 to 20:00. does it matter or not? thx

  • philtong

    thx for your hard work, i try to do the 4 hr set up and notice that the open and close time for each bar is different from yours. e.g. yours from 15:00 to 19:00 and mine are from 16:00 to 20:00. does it matter or not? thx

  • bigpippin

    Cosgrove- Yea I just held my trade until the very end. However, had the price dropped, I probably would pull the plug to avoid further losses.

    philtong- Well since your 4 hr charts are including different times, we would be getting different looking candles. So I would assume that this wouldn’t work. I’ve never tested on a chart like that so I don’t know for sure, but it really doesn’t seem like it would.

  • bigpippin

    Cosgrove- Yea I just held my trade until the very end. However, had the price dropped, I probably would pull the plug to avoid further losses.

    philtong- Well since your 4 hr charts are including different times, we would be getting different looking candles. So I would assume that this wouldn’t work. I’ve never tested on a chart like that so I don’t know for sure, but it really doesn’t seem like it would.

  • sambhu

    How do you manage to enter at the close of a candle? I am not sure where the closing price is going to be before closing of a candle;the next candle my never come to that level…..confusion. Please help.

  • bigpippin

    By close, I enter right when the candle ends. So if I’m on a 15 minute chart with a possible entry coming up and the time is 5:14, I know I’m about to enter. That’s when I start pulling up my trade station to execute my order. You’re not always going to get in exactly at the close but you want to try to enter as close as possible to it.

  • sambhu

    How do you manage to enter at the close of a candle? I am not sure where the closing price is going to be before closing of a candle;the next candle my never come to that level…..confusion. Please help.

  • bigpippin

    By close, I enter right when the candle ends. So if I’m on a 15 minute chart with a possible entry coming up and the time is 5:14, I know I’m about to enter. That’s when I start pulling up my trade station to execute my order. You’re not always going to get in exactly at the close but you want to try to enter as close as possible to it.