Cowabunga System Daily Update: 09/26/07

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Main Trend

Current Trend= The trend remained down the entire day.

Today I only looked for short trades.

Today’s Surf

1:30am ET- There was a moving average crossover for a short trade. RSI was less than 50, stochastics were trending down, and MACD was positive and losing value. This was a valid entry. The entry was at the close of the candle at 2.0168 with a stop at the most recent swing high at 2.0187. Since I was 18 pips away from the nearest 50 or 00 level, I decided to put my target at 2.0150.

Entry: Short at 2.0168

Stop: 2.0187

Initial Target: 2.0150

4:15am ET- My target was hit. Price made a clean break of my target so I moved my stop loss to 2.0150 and set my next target for 2.0100.

4:30am ET- Unfortunately I was stopped out at my first target at 2.0150.

10:45am ET- There was a moving average crossover for a short trade. RSI was less than 50, stochastics were trending down, and MACD was positive and losing value. This was a valid entry. The entry was at the close of the candle at 2.0152 with a stop at the most recent swing high at 2.0170. Since I was only 2 pips away from the nearest 50 or 00 level (2.0150), I decided to for the same amount of pips I was risking on the trade, which in this case was 18 pips. This put my target at 2.0134.

Entry: Short at 2.0152

Stop: 2.0170

Initial Target: 2.0134

4:00pm ET- Unfortunately my target wasn’t hit by this time, and according to my rules, I always close out my trades at this time whether I’m winning or losing. I exited at 2.0154 for a slight loss of 2 pips.

Trade Result: +18 -2= +16 pips; R-Multiple: 0.94; -0.11

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  • pinetree

    PS, please help me out here. I’m getting a bit frustrated. Your 1:30am trade short at 2.0168, stop at 2.0187 and target at 2.0150 — I had the same entry but my stop was 2.0189 as I used the higher bar —however, I was stopped out at a 21 pip loss. It seems you make your entries on the bid screen as do I, however, on the ask screen – 2.0190 was hit which stopped me out. Why were you also not stopped out? Cheers.

  • pinetree

    PS, please help me out here. I’m getting a bit frustrated. Your 1:30am trade short at 2.0168, stop at 2.0187 and target at 2.0150 — I had the same entry but my stop was 2.0189 as I used the higher bar —however, I was stopped out at a 21 pip loss. It seems you make your entries on the bid screen as do I, however, on the ask screen – 2.0190 was hit which stopped me out. Why were you also not stopped out? Cheers.