Cowabunga System Daily Update: Wednesday, 10/22/08

Pssst…Have you heard about MeetPips.com yet?

If you haven’t done so already , go check out BabyPips’ newest creation, FreshPips.com !

Freshpips.com delivers to your e-door step the most relevant Forex news and research on the Web. The stories you see on FreshPips are submitted by site members – you and your fellow Forex traders. You then decide what’s “fresh” and what, well, sucks. Top honors – submissions placed on the main page – are given to the stories deemed fresh by the FreshPips.com community as a whole.

Check it out, register, and start submitting cool Forex stories today!

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

Main Trend

Current Trend= The trend remained down the entire day.

Today I only looked for short trades

News events to watch for today :
  • 4:30am EST– UK MPC Minutes

Today’s Surf

3:30am 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 1.6285 with a stop at the most recent swing high at 1.6426. Since I was 35 pips away from the nearest 50 or 00 level, I decided to put my target at 1.6250.

Entry: Short at 1.6285

Stop: 1.6426

Initial Target: 1.6250

4:00am EST- My target wasn’t quite hit, but it was the 2nd candle in a row my target was narrowly missed. With a long down trend taking place I felt like my trade might be exhausted and exited. I exited at 1.6260.

7:00am 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 1.6329 with a stop at the most recent swing high at 1.6449. Since I was 29 pips away from the nearest 50 or 00 level, I decided to put my target at 1.6300.

Entry: Short at 1.6329

Stop: 1.6449

Initial Target: 1.6300

8:00am EST– My target was hit. Price made a clean break so I trailed my stop to 1.6300 and set my next target for 1.6250.

8:15am EST– Unfortunately I was stopped out at 1.6300.

10:30am 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 1.6362 with a stop at the most recent swing high at 1.6470. Since I was only 12 pips away from the nearest 50 or 00 level (1.6350), I decided to go for the same amount of pips I was risking on the trade, which in this case was 108. This put my initial target at 1.6254.

Entry: Short at 1.6362

Stop: 1.6470

Initial Target: 1.6254

11:15am EST– My target was hit. Price made a clean break so I trailed my stop to 1.6254 and set my next target for 1.6200.

11:30am EST- My 2nd target was hit at 1.6200. Price made a clean break so I trailed my stop to 1.6200 and set my next target for 1.6150. During this same candle, my 3rd target at 1.6150 was hit so I trailed my stop to 1.6150 in hopes of getting my next target at 1.6100. Unfortunately the price continued to retrace up and stopped me out at 1.6150.

entry2

Trade Result: +25 +29 +212= +266 pips (NOT INCLUDING SPREAD) R-Multiple: 0.61; 0.24; 1.96

News events to watch for tomorrow :
  • 4:30am EST– UK Retail Sales
  • 8:30am EST– US Unemployment Claims

For a complete list of news events check out our News Section

Questions? Read the Cowabunga FAQ.
Want to discuss the Cowabunga System? Visit our Forums.
Like what you've read?
Join over 40,000 other traders who get our newsletter. Tutorials, EAs, chart setups, free forex trading systems, and more!
  • DZMouloudia

    Hi,
    Why you do not trade on Fridays?

    Thanc for all your help.

  • therbcoe

    Who sent you an email 9 minutes into the video?

  • -Conan-

    Fridays are when the market begins to shift for the following week. It’s not very predictable so most people just avoid them altogether.

    Great update, Pip Surfer. :)

  • DZMouloudia

    Hi,
    Why you do not trade on Fridays?

    Thanc for all your help.

  • therbcoe

    Who sent you an email 9 minutes into the video?

  • johnnyjohnjohnjohnny

    Hi,

    You guys are the nicest guys in forex, for sure.

    I would like some clarification on one issue. I see that sometimes your risk/reward ratios are not in keeping with adage of at least 1:2 risk/reward.

    For instance one of today’s trades that you posted looked like this:

    Entry: Short at 1.6285
    Stop: 1.6426
    Initial Target: 1.6250

    That’s a 141 Pip risk to make 35 Pips.

    Just wanted to get your thoughts on this.

    Thank you for all the help you give people with trading.

  • -Conan-

    Fridays are when the market begins to shift for the following week. It’s not very predictable so most people just avoid them altogether.

    Great update, Pip Surfer. :)

  • johnnyjohnjohnjohnny

    Hi,

    You guys are the nicest guys in forex, for sure.

    I would like some clarification on one issue. I see that sometimes your risk/reward ratios are not in keeping with adage of at least 1:2 risk/reward.

    For instance one of today’s trades that you posted looked like this:

    Entry: Short at 1.6285
    Stop: 1.6426
    Initial Target: 1.6250

    That’s a 141 Pip risk to make 35 Pips.

    Just wanted to get your thoughts on this.

    Thank you for all the help you give people with trading.

  • sanju005ind

    Hello Pip Surfer thanks for all the videos I learned a great deal from them.However I am not able to get the entry right.Most of the time I see that I am 50-80 pips away from the crossover.Is there any specific stategy for entry in this system?

  • sanju005ind

    Hello Pip Surfer thanks for all the videos I learned a great deal from them.However I am not able to get the entry right.Most of the time I see that I am 50-80 pips away from the crossover.Is there any specific stategy for entry in this system?