Cowabunga System Daily Update: 03/05/07

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Main Trend

Current Trend= Trend remained down the entire day.

Today I only looked for short trades.

Today’s Surf

11:30 pm ET; 1:15 am ET - There was a moving average crossover for a short trade. However, MACD was already negative so this cancelled out the signal. No entry!

11:45 am ET- There was a moving average crossover for a short trade. RSI<50, Stochastics were trending down, and MACD was positive and losing value. This was a valid entry. Entry was at the close of the candle which was at 9231 with a stop at the most recent swing high which was at 9282. I could either target the nearest 00 level at 9200 which would give me a potential +31 target or go for the same amount of pips which would give me a potential +51 target. Since the entry came during the later part of the US session I figured that volume had probably died down for the rest of the day and decided to go for the smaller target which was at 9200.

4:00 pm ET- Unfortunately volume really died down and my target was not hit. As part of my rules, I closed my trade out at this time. I ended up getting out at 9221.

Trade Result: +10 pips

As of this day forward, I will only be taking signals that occur after midnight. I know this will probably decrease the number of trades I make but I’d like to test it out and see if it helps filter out some of the whipsaws we get during the early part of the trading day. Keep in mind, we will probably miss out on some good moves but it should also help eliminate some of our losses. I’ll try it for a couple of months and see if it helps. If not then I’ll make adjustments at that time.

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13 comments

  1. foricks

    Great call on the change to your system. While you were getting valid entries during the Asian session, your risk to reward was too great to make a lot of these worthwhile. Surf’s up, dude!

    Reply
  2. CraigFX

    Do you have all your settings set to floating and close when available? I’m trying to figure out why my indicators are not always on with yours. Thanks

    Reply
  3. Big Pippinbigpippin

    I’m not sure what you mean by your question. My indicators are all applied to the closing price. The discrepancies between indicators could be due to the use of different brokers but it shouldn’t vary too much.

    Reply
  4. m1234

    Hi Big Pippin,

    First off just wanted to say that this is the best website ever. Finally making consistent pips after graduating here and want to Thank You for that.

    About your system. If Stochastics and RSI are both in the oversold or overbought area on the 4 Hour chart, do you still look for possibe trades as long as the 15 minute guidlines are met. I see that you have on top. As long as they are both trending down or up on the 4 hour chart that is ok?

    Reply
  5. foricks

    Great call on the change to your system. While you were getting valid entries during the Asian session, your risk to reward was too great to make a lot of these worthwhile. Surf’s up, dude!

    Reply
  6. CraigFX

    Do you have all your settings set to floating and close when available? I’m trying to figure out why my indicators are not always on with yours. Thanks

    Reply
  7. Big Pippinbigpippin

    I’m not sure what you mean by your question. My indicators are all applied to the closing price. The discrepancies between indicators could be due to the use of different brokers but it shouldn’t vary too much.

    Reply
  8. ccahill

    hi,
    on your 15 min chart you point out the two crosses where they were invalid due to the macd. do you have a system you can change to, to try and catch some of that downtrend? or does this fit into the category that no system catches all the trades, and its a case of only following your plan.

    Reply
  9. ccahill

    hi,
    on your 15 min chart you point out the two crosses where they were invalid due to the macd. do you have a system you can change to, to try and catch some of that downtrend? or does this fit into the category that no system catches all the trades, and its a case of only following your plan.

    Reply
  10. youngsid

    hi bigpippin,your system has been so helpful to me lately thanks man, but i will like to know, If Stochastics and RSI are both in the oversold or overbought area on the 4 Hour chart, do you still look for possible trades as long as the 15 minute guidelines are met.

    Reply
  11. youngsid

    hi bigpippin,your system has been so helpful to me lately thanks man, but i will like to know, If Stochastics and RSI are both in the oversold or overbought area on the 4 Hour chart, do you still look for possible trades as long as the 15 minute guidelines are met.

    Reply

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