Cowabunga System Daily Update: Thursday, 04/03/08

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

Sorry dudes. No video today! I promise I’ll put one up when I have some time!

Main Trend

Current Trend= The trend remained up the entire day.

Today I only looked for long trades.

News events to watch for today :
  • 4:30am EST- UK Services PMI
  • 10:00am EST- US ISM Non-Manufacturing Composite

Today’s Surf

12:45am EST- There was a moving average crossover for a long trade. RSI was greater than 50, stochastics were trending up, and MACD went from negative to positive. This was a valid entry. The entry was at the close of the candle at 1.9868 with a stop at the most recent swing low at 1.9849. Since I was 32 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.9900.

Entry: Long at 1.9868

Stop: 1.9849

Initial Target: 1.9900

6:45am EST- There was a moving average crossover for a long trade. RSI was greater than 50, stochastics were trending up, and MACD went from negative to positive. This was a valid entry. The entry was at the close of the candle at 1.9821 with a stop at the most recent swing low at 1.9775. Since I was 29 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.9850.

Entry: Long at 1.9821

Stop: 1.9775

Initial Target: 1.9850

8:15am EST- My chart software had some technical difficulties so I had to use a different chart to monitor my trade.

8:30am EST- My target was hit. Price did not make a clean break so I took my final profit. I exited at 1.9848.

entry2

Trade Result: -19 +27 = +8 pips; R-Multiple: -1.00; 0.58

News events to watch for tomorrow :
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  • jsese

    Hey man…cool..I jumped in both but I only ended up 3 pips…I don’t know how you do it but you always seem to get better execution than me on the entries and my stops and limits are usualy one or two pips away from yours, but at least I am catching them correctly. Thanks for your post man..seriously..I finish trading and wait for your posts to compare. It’s good for discipline and motivation.so once again thanks!

  • jsese

    Hey man…cool..I jumped in both but I only ended up 3 pips…I don’t know how you do it but you always seem to get better execution than me on the entries and my stops and limits are usualy one or two pips away from yours, but at least I am catching them correctly. Thanks for your post man..seriously..I finish trading and wait for your posts to compare. It’s good for discipline and motivation.so once again thanks!

  • djtrever

    Hey Dude! I went long at 1.9873 at 6:25am PST and exited at 1.9898 for 25pips. I’ve learned more from you in the last 2 weeks then I’ve learned from any software program I’ve paid for. Thank you.

  • drfx

    How and where do you report forex trading gains/losses on Tax returns in form 1040. Can we use Schedule D for this purpose? Please help me out.

  • djtrever

    Hey Dude! I went long at 1.9873 at 6:25am PST and exited at 1.9898 for 25pips. I’ve learned more from you in the last 2 weeks then I’ve learned from any software program I’ve paid for. Thank you.

  • gryat

    Say you are trading the cowabunga. You have a good day so the trade reaches your target. However, we have here three different scenarios of what can happen.

    The trade reaches [B]less than 5[/B] pips above the target, then retraces back under it. The rules here are to close the trade as fast as you can, is that correct?

    The trade reaches [B]5 pips or more[/B] above the target, but then retraces back under it. What is the rule to do here? I just close half my trade and set the rest on a trailing stop. The really bad thing about this is that sometimes the damn price (like today, friday) move up to make a clean break of the target. But there is no way you can know that. Should you take a chance that it will make a clean break here? There is just no way of knowing it. Still, about 90 % of the clean breaks occure out of scenarios like this.

    Then the final scenario, where the price reaches your target and stay above it for the whole candle session. This is quite unusual, but it seems to be the only way of knowing for sure if the candle will make a clean break or not

  • drfx

    How and where do you report forex trading gains/losses on Tax returns in form 1040. Can we use Schedule D for this purpose? Please help me out.

  • gryat

    Say you are trading the cowabunga. You have a good day so the trade reaches your target. However, we have here three different scenarios of what can happen.

    The trade reaches [B]less than 5[/B] pips above the target, then retraces back under it. The rules here are to close the trade as fast as you can, is that correct?

    The trade reaches [B]5 pips or more[/B] above the target, but then retraces back under it. What is the rule to do here? I just close half my trade and set the rest on a trailing stop. The really bad thing about this is that sometimes the damn price (like today, friday) move up to make a clean break of the target. But there is no way you can know that. Should you take a chance that it will make a clean break here? There is just no way of knowing it. Still, about 90 % of the clean breaks occure out of scenarios like this.

    Then the final scenario, where the price reaches your target and stay above it for the whole candle session. This is quite unusual, but it seems to be the only way of knowing for sure if the candle will make a clean break or not