About Pip My System

Dude! So you've read just about everything you could possibly get your hands on about the Forex. Now you want to get your feet wet but aren't sure where to start. Well then this blog is for you! Follow along as I take a simple forex trading system and apply it to an unsimple market. If you're new to the blog you should read this first.

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March 2008

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Cowabunga System Daily Update: Wednesday, 03/05/08

Posted 13:33 05 March 2008 | 5

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

News events to watch for today :

4:30am EDT- GBP Services PMI
8:15am EDT- ADP Non Farm Employment Change
8:30am EDT- US Nonfarm productivity
10:00am EDT- US ISM Non-Manufacturing Composite
2:00pm EDT- US Beige Book

Today's Surf

12:45am 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 1.9834 with a stop at the most recent swing high at 1.9850. Since I was 34 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.9800.

Entry: Short at 1.9834
Stop: 1.9850
Initial Target: 1.9800

1:15am EDT- Unfortunately I was stopped out of my trade.

2:00am EDT- There was a moving average crossover for a short trade. RSI was less than 50, stochastics were trending down, and MACD went from positive to negative. This was a valid entry. The entry was at the close of the candle at 1.9815 with a stop at the most recent swing high at 1.9852. Since I was only 15 pips away from the nearest 50 or 00 level (9800), I decided to go for the same amount of pips I was risking on the trade, which in this case was 37. This put my initial target at 1.9778.

Entry: Short at 1.9815
Stop: 1.9852
Initial Target: 1.9778

2:15am EDT- My target was hit. Price did not make a clean break so I took my final profit. I was able to exit at 1.9780.

7:45am EDT- There was a valid signal here but because it was close to a news event at 8:15am EDT, I did not take the trade.

Trade Result: -16 +35= +19 pips; R-Multiple: -1.00; 0.94

News events to watch for tomorrow :

3:00am EDT- GBP Halifax House Price Index
7:00am EDT- BOE Interest Rate Statement
8:30am EDT- US Unemployment Claims
10:00am EDT- US Pending Home Sales

Questions? Read the Cowabunga FAQ.

Want to discuss the Cowabunga System? Visit our Forums.

Cowabunga System Daily Update: Tuesday, 12/04/07 15:49 04 December 2007
Cowabunga System Daily Update: Monday, 12/03/07 12:34 03 December 2007
Cowabunga System Daily Update: Monday, 04/07/08 13:28 07 April 2008
Cowabunga System Daily Update: Monday, 03/03/08 18:00 03 March 2008
Cowabunga System Daily Update: Wednesday, 01/16/08 13:32 16 January 2008

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I actually put my stop-loss 2 pips over the last swingh-high level, just because the price/broker almost always make the price hit those levels in order to cut out some stop-losses (and thus making more money for the broker)

gryat | Posted 15:41 05 March 2008

I know you didn't take the 7.45am trade due to a news event but according to your rules it was not a valid entry anyway as MACD was already +ve. Is this correct?

meza | Posted 07:39 06 March 2008

General question, I assume that you make your decision to enter on the closed candle. If this is correct, how can you say that you enter at the close of that candle (eg today you said that your entry for the 2.00am trade was the close of the entry candle at 1.9815). Could you please respond. thanks

meza | Posted 07:59 06 March 2008

Meze- For the 7:45am Trade, MACD was positive but it was losing value. This still counts as a valid signal. When I say close, I mean to say that you want to get in as close to it as possible. This means having a pretty darn quick trigger finger. It takes practice but you start to get good at making trades lightning fast after a while. Hope that helps. Happy trading!

PipSurfer | Posted 12:23 06 March 2008

Thanks PipSurfer, Just to clarify, wasn't the 7.45 trade a lond trade and thus MACD should have either been negative and gining or going from negatice to positive. I relation to entry points. I take it from your answer that you do your analysis on the closed candle and then enter on the next candle. Is this correct? Look forward to hearing from you.

meza | Posted 17:28 06 March 2008

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