Cowabunga System Daily Update: 02/07/07

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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

9:45 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 was a valid entry. Entry was at the close of the candle which was at 9701 with a stop at the most recent swing low which was at 9684. Since the entry was before midnight I decided to set my initial target for the same amount of pips I was risking. It ends up being a 17 pip target which is a reasonable win so you could’ve chosen to take your profit there, but I wanted to see if I could grab more pips, so I decided to trail my stop once my 17 pip target was hit and try to grab as many pips as possible.

2:30 am ET- My initial target is hit at 9718 and I move my stop to breakeven. My next target is set for the nearest 50 level which was at 9750.

3:45 am ET- Unfortunately I am stopped out at breakeven.

5:30 am 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 was a valid entry. Entry was at the close of the candle which was at 9710 with a stop at the most recent swing low which was at 9672. Since the entry was after midnight I decided to set my initial target for the nearest 50 level which was at 9750.

3:45 pm ET- Unfortunately my target is not hit by this point and by following my system rules, I manually closed my trade out at 4 pm ET. I exited at 9696.

Trade Result: +0 pips; -14 pips

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  • foricks

    I, too saw the big wave, but had a little bigger wipeout (twice) first was stopped short because I didn’t set the stop low enough. Still saw the 9750 as a legit target as this was 2 pips short of the 12am Pivot Point. Stopped out on a trailing stop at 9700 on the second one. What are your thoughts on using trailing stops as a means of mitigating loss on a run up?

  • foricks

    I, too saw the big wave, but had a little bigger wipeout (twice) first was stopped short because I didn’t set the stop low enough. Still saw the 9750 as a legit target as this was 2 pips short of the 12am Pivot Point. Stopped out on a trailing stop at 9700 on the second one. What are your thoughts on using trailing stops as a means of mitigating loss on a run up?

  • bigpippin

    I only like trailing my stop if my initial target is hit. Other than that, I like letting my trade run out.

  • bigpippin

    I only like trailing my stop if my initial target is hit. Other than that, I like letting my trade run out.