Cowabunga System Daily Update: Monday, 12/03/07

If this is your first time visiting this blog, read this first!

Main Trend

Current Trend= The trend remained down until 11am EDT. From 7am – 11am EDT a new trend change candle formed and changed the trend from down to UP. After 11am EDT, the trend remained up the rest of the day.

Today I looked for short trades until 11am EDT. After 11am EDT I only looked for long trades.

Today’s Surf

3:15am EDT– 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 2.0575 with a stop at the most recent swing high at 2.0635. Since I was 15 pips away from the nearest 50 or 00 level, I decided to put my initial target at 2.0550.

Entry: Short at 2.0575

Stop: 2.0635

Initial Target: 2.0550

3:45am EDT– My target was hit at at 2.0550. Price made a clean break of my target so I moved my stop to 2.0550 and set my next target for 2.0500.

4:30am EDT– Unfortunately I was stopped out at 2.0550.

Trade Result: +25 pips; R-Multiple: 0.41

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  • vbrown5897

    HI Cowabunga Dude, you are awesome..I have been following your blog for a couple of months now. I noticed that you calculated 15 pips on Monday’s blog shouldn’t it be 25 pips?

  • vbrown5897

    HI Cowabunga Dude, you are awesome..I have been following your blog for a couple of months now. I noticed that you calculated 15 pips on Monday’s blog shouldn’t it be 25 pips?

  • GentooGeek

    Hi there,

    Thanx for everything. I am trying to test an expert advisor against your updates that you give, but find it very slow. I was wondering if you can provide a csv list of the information that you provide in your updates. This would make it a lot simpler to check if my advisor if following the system properly.

    Thanx again,

    GentooGeek

  • Pipslinger

    I’m having some trouble getting my RSI graph to look like yours, Pip Surfer. I changed it to an EMA based RSI rather than an SMA based RSI and that helped. However, if I set the parameters to 9, 0, 0 my graph does not match yours. If I set it to 14, 0, 0 (the default for my chart) it seems to match much better. Do you know why this is the case?

  • GentooGeek

    Hi there,

    Thanx for everything. I am trying to test an expert advisor against your updates that you give, but find it very slow. I was wondering if you can provide a csv list of the information that you provide in your updates. This would make it a lot simpler to check if my advisor if following the system properly.

    Thanx again,

    GentooGeek

  • craigfx

    You risked 60pips for 25pips? Why did you not go for the amount of pips you had at risk(60)? Doesn’t seem like a good risk/reward trade.

  • Pipslinger

    I’m having some trouble getting my RSI graph to look like yours, Pip Surfer. I changed it to an EMA based RSI rather than an SMA based RSI and that helped. However, if I set the parameters to 9, 0, 0 my graph does not match yours. If I set it to 14, 0, 0 (the default for my chart) it seems to match much better. Do you know why this is the case?

  • PipSurfer

    vbrown- haha thanks for catching that. Seems I had a case of the “Mondays”

    Gento- I do have an excel spreadsheet of all my trades. Send an email through our “contact” page and I’ll try to get it to you.

    Pipslinger- That’s odd. My settings are 9,0,0 with an SMA. I do not know why yours is different. I’m sorry I can’t help you there. Ask your question on the forums and hopefully another trader can assist you.

    Craig- The R/R ratio isn’t always that bad. In fact, if you look at the month of November, our R/R was actually horrible, but we won over 80% of our trades. With this system you either get few wins but excellent R/R or a high percentage of wins with either a 1/1 or slightly worse R/R. Hope that helps.

    Happy trading everyone!

    PS

  • gryat

    Love these reports :)

  • craigfx

    How do you determine if initial target is going to be for 00/50 or for pips risked? Do you have a cut off? or do you not do pips risk anymore? Thanks

  • craigfx

    You risked 60pips for 25pips? Why did you not go for the amount of pips you had at risk(60)? Doesn’t seem like a good risk/reward trade.

  • PipSurfer

    vbrown- haha thanks for catching that. Seems I had a case of the “Mondays”

    Gento- I do have an excel spreadsheet of all my trades. Send an email through our “contact” page and I’ll try to get it to you.

    Pipslinger- That’s odd. My settings are 9,0,0 with an SMA. I do not know why yours is different. I’m sorry I can’t help you there. Ask your question on the forums and hopefully another trader can assist you.

    Craig- The R/R ratio isn’t always that bad. In fact, if you look at the month of November, our R/R was actually horrible, but we won over 80% of our trades. With this system you either get few wins but excellent R/R or a high percentage of wins with either a 1/1 or slightly worse R/R. Hope that helps.

    Happy trading everyone!

    PS

  • PipSurfer

    craig- If going for the nearest 50 or 00 level gives me at least 10 pips or more I’ll usually go for it. However, anything less, and I usually like to go for the same amount of pips I am risking. On some occasions both methods will only net you 10 or less pips, so in those cases, you just kind of look for a good support or resistance level to take profit. Hope that helps!

  • gryat

    Love these reports :)

  • craigfx

    How do you determine if initial target is going to be for 00/50 or for pips risked? Do you have a cut off? or do you not do pips risk anymore? Thanks

  • PipSurfer

    craig- If going for the nearest 50 or 00 level gives me at least 10 pips or more I’ll usually go for it. However, anything less, and I usually like to go for the same amount of pips I am risking. On some occasions both methods will only net you 10 or less pips, so in those cases, you just kind of look for a good support or resistance level to take profit. Hope that helps!

  • craigfx

    Thanks, that clears that up.

  • craigfx

    Thanks, that clears that up.