Cowabunga System Daily Update: Monday, 04/07/08

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 stayed up until 4am EST. From 12am – 4am EST, a new trend change candle formed and changed the trend from up to DOWN. After 4am EST, the trend remained down the rest of the day.

Today I only looked for long trades until 4am EST. After 4am EST, I only looked for short trades.

News events to watch for today :
  • None

Today’s Surf

5:45am EST- 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 1.9863 with a stop at the most recent swing high at 1.9883. Since I was only 13 pips away from the nearest 50 or 00 level (1.9850), I decided to go for the same amount of pips I was risking on the trade which in this case was 20. This put my initial target at 1.9843.

Entry: Short at 1.9863

Stop: 1.9883

Initial Target: 1.9843

6:00am EST- Unfortunately I was stopped out of my trade.

11:15am EST- 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 1.9874 with a stop at the most recent swing high at 1.9901. Since I was 24 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.9850.

Entry: Short at 1.9874

Stop: 1.9901

Initial Target: 1.9850

11:45am EST- My target was hit. Price did not make a clean break so I took my final profit. I exited at 1.9852.

entry2

Trade Result: -20 +22= +2 pips: R-Multiple: -1.00; 0.81

News events to watch for tomorrow :
  • 3:00am EST- Halifax House Price Index m/m
  • 10:00am EST- US Pending Home Sales
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  • gryat

    When you put up a video, please answer this (there are some more than me who wonder)

    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

  • PipSurfer

    sure thing gryat. I’d type it out, but that’s a long response so I’ll definitely answer when I put up my next video. Thanks for the great question! Happy trading!

  • gryat

    When you put up a video, please answer this (there are some more than me who wonder)

    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

  • PipSurfer

    sure thing gryat. I’d type it out, but that’s a long response so I’ll definitely answer when I put up my next video. Thanks for the great question! Happy trading!

  • jsese

    Hey pipsurfer..I got the same results as you did today but he difference was that on the second trade, I got a valid (or what I thought was valid i should say) signal at 10:15. When the 10:30 bar opened I went short at 1.9873 because it was fully crossedover and then with the big green bar it undid the cross but I was already in. In the end, the result was the same (this time) but I want to know how you avoided getting in it..I understand that charts are different, but that was a blatant crossover before the following bar shot up! Anyway if you can, let me know.
    Take care.

  • MissPips

    Hi Pip Surfer,

    I think you have a mistake in your March statistics summary. You have a total of 8 pips listed for the month, but you didn’t include the last week of the month, which would give you a total of about 96 pips. (I am making a spreadsheet of the trades because someone asked for one in the forums to test the Cowabunga EA, but it’s taking me a long time because I’m going back manually to record all the trades for the last year plus some other statistics that might be useful like max drawdown before a trade turns positive, how far the trade went after your target, and what the Swissy and Euro were doing at the same time as the trade.)

  • jsese

    Hey pipsurfer..I got the same results as you did today but he difference was that on the second trade, I got a valid (or what I thought was valid i should say) signal at 10:15. When the 10:30 bar opened I went short at 1.9873 because it was fully crossedover and then with the big green bar it undid the cross but I was already in. In the end, the result was the same (this time) but I want to know how you avoided getting in it..I understand that charts are different, but that was a blatant crossover before the following bar shot up! Anyway if you can, let me know.
    Take care.

  • MissPips

    Hi Pip Surfer,

    I think you have a mistake in your March statistics summary. You have a total of 8 pips listed for the month, but you didn’t include the last week of the month, which would give you a total of about 96 pips. (I am making a spreadsheet of the trades because someone asked for one in the forums to test the Cowabunga EA, but it’s taking me a long time because I’m going back manually to record all the trades for the last year plus some other statistics that might be useful like max drawdown before a trade turns positive, how far the trade went after your target, and what the Swissy and Euro were doing at the same time as the trade.)