Cowabunga System Daily Update: Monday, 04/14/08

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Main Trend

Current Trend= The trend remained down until 8am EST. From 4am – 8am EST, a new trend change candle formed and changed the trend from down to UP. After 8am EST, I only looked for long trades.

Today I only looked for short trades until 8am EST. After 8am EST, I only looked for long trades.

News events to watch for today :

Today’s Surf

1:45am EST- 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 1.9693 with a stop at the most recent swing high at 1.9720. Since I was 43 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.9650.

Entry: Short at 1.9693

Stop: 1.9720

Initial Target: 1.9650

2:15am EST- Unfortunately I was stopped out of my trade.

3:30am EST- 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 1.9703 with a stop at the most recent swing high at 1.9742. Since I was only 3 pips away from the nearest 50 or 00 level (1.9700), I decided to go for the same amount of pips I was risking on the trade, which in this case was 39. This put my initial target at 1.9664.

Entry: Short at 1.9703

Stop: 1.9742

Initial Target: 1.9664

4:15am EST- Unfortunately I was stopped out of my trade.

entry2

Trade Result: -27 -39= -66 pips: R-Multiple: -1.00; -1.00

News events to watch for tomorrow :
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  • Klee

    Hello Pipster,

    I should have told you that your April Fool got me too….. By the way, I like the clarity of the definition of the entry positions offered by Cowabunga, however, as was your experience today, it seems we need a damper for volatility. I have noticed that when Cowa is good, it is very, very good but when it is bad, it is horrid. Is there a tool that we can look at to assess the volatility and thereby improve our chances on entry or are there some market conditions to take into account? I am looking for a tweak to help keep some of what I have earned. Good luck and thanks for all the help so far.

  • SittingBull

    I use 20 EMA to indentify the direction. In your case this would save you 66 pips. Have you ever tried to use your system in a bigger timeframe, for example 1 or 3 hour view. I think your system can be useful, maybe without the macd criteria, because on longer timeframe there are less RSI 50 crossovers, and than the macd would be already positive or negative.
    SB

  • Klee

    Hello Pipster,

    I should have told you that your April Fool got me too….. By the way, I like the clarity of the definition of the entry positions offered by Cowabunga, however, as was your experience today, it seems we need a damper for volatility. I have noticed that when Cowa is good, it is very, very good but when it is bad, it is horrid. Is there a tool that we can look at to assess the volatility and thereby improve our chances on entry or are there some market conditions to take into account? I am looking for a tweak to help keep some of what I have earned. Good luck and thanks for all the help so far.

  • SittingBull

    I use 20 EMA to indentify the direction. In your case this would save you 66 pips. Have you ever tried to use your system in a bigger timeframe, for example 1 or 3 hour view. I think your system can be useful, maybe without the macd criteria, because on longer timeframe there are less RSI 50 crossovers, and than the macd would be already positive or negative.
    SB