Cowabunga System Daily Update: Thursday, 01/22/09

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Main Trend

Current Trend= The trend remained down the entire day

Today I only looked for short trades.

News events to watch for today :
  • 8:30am EDT- US Building Permits: Unemployment claims

Today’s Surf

1:00am EDT- There was a moving average crossover for a short trade. RSI was less than 50, stochastics were trending down, but MACD was already negative. This cancelled out the signal and I did not enter.

5:00am EDT- 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 1.3851 with a stop at the most recent high at 1.3929. Since I was only 1 pip away from the nearest 50 or 00 level (1.3850), I decided to go for the same amount of pips I was risking on the trade, which in this case was 78. This put my initial target at 1.3773.

Entry: 1.3851
Stop: 1.3929
Target: 1.3773

6:15am EDT- My target was hit. Price did not make a clean break so I took my final profit. I exited at the close of the candle right at 1.3773.

entry2

Trade Result: +78pips (NOT INCLUDING SPREAD) R-Multiple: 1.00

News events to watch for tomorrow :
  • 4:30am EDT- UK Prelim GDP q/q; UK Retail Sales

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.
  • volodja

    Hello, Cowabunga! Your risk-reward ratio is 1:1. Why didn’t you make your target at least twise the pips you risked?

  • patmcc88

    volodja: the risk-reward ratio is sometimes a little bit steep (i.e. we risk a lot more than we aim to get) because the strike rate of this system is much higher than 50%. However if we used a ratio higher than 1:1 then the strike rate would fall massively and we’d rarely win. The occassional big loss if offset completely by all the small wins! good luck trading.

    Also Pip surfer, do you trade any other systems aswell as this one? Cheers

    Patmcc88

  • pipsprof.

    Hello,pipsurfer, your MACD is different from our own even though it is 12,26,9 parameter settings. So the 1st trade of 1 am EDT,was a perfect trade on my platform,while the 2nd trade you entered was not because my MACD was already in the negative region,I use a metatrader platform with fxpro.Can u please clarify this disparity in the readings? Otherwise valid trades will be lost by lots of your fans. Thanks once again for the good works you are doing educating traders. Elvis,Nigeria.

  • dsnow1226

    i know the system is suppose to be simple but I dont see why you can’t take trades when macd is already negative, use a buy stop and don’t exit until macd starts showing negative to positive, actually you could then use a trail, just incase the trend was just taking a breather (which it usually does) then add to your position at the next sign of strength from a lower time frame) you missed an extra 80 pips.

  • vriesde1

    Well I do not agree on taking trades when macd is already negative, this indicates the price is already trading, while the cowabunga system is aiming for trend changes on a 15min timeframe and catch the trend early.

    Thanks for the system, it’s been very generous to me :)

    took home 80 pips today as well.

  • volodja

    Hello, Cowabunga! Your risk-reward ratio is 1:1. Why didn’t you make your target at least twise the pips you risked?

  • patmcc88

    volodja: the risk-reward ratio is sometimes a little bit steep (i.e. we risk a lot more than we aim to get) because the strike rate of this system is much higher than 50%. However if we used a ratio higher than 1:1 then the strike rate would fall massively and we’d rarely win. The occassional big loss if offset completely by all the small wins! good luck trading.

    Also Pip surfer, do you trade any other systems aswell as this one? Cheers

    Patmcc88

  • pipsprof.

    Hello,pipsurfer, your MACD is different from our own even though it is 12,26,9 parameter settings. So the 1st trade of 1 am EDT,was a perfect trade on my platform,while the 2nd trade you entered was not because my MACD was already in the negative region,I use a metatrader platform with fxpro.Can u please clarify this disparity in the readings? Otherwise valid trades will be lost by lots of your fans. Thanks once again for the good works you are doing educating traders. Elvis,Nigeria.

  • dsnow1226

    i know the system is suppose to be simple but I dont see why you can’t take trades when macd is already negative, use a buy stop and don’t exit until macd starts showing negative to positive, actually you could then use a trail, just incase the trend was just taking a breather (which it usually does) then add to your position at the next sign of strength from a lower time frame) you missed an extra 80 pips.

  • vriesde1

    Well I do not agree on taking trades when macd is already negative, this indicates the price is already trading, while the cowabunga system is aiming for trend changes on a 15min timeframe and catch the trend early.

    Thanks for the system, it’s been very generous to me :)

    took home 80 pips today as well.

  • pipsprof.

    Thank u dsnow and vriesde1, hope to make more pips from ur recommendations. please will someone out there help me set up a moving average crossover alert on my phone.Presently i configured the alert on a website ALERT FX .com and only gets to my email box only. I spend too much time on my laptop hoping to catch a valid trade.HELP ME PLEASE.

  • pipsprof.

    Thank u dsnow and vriesde1, hope to make more pips from ur recommendations. please will someone out there help me set up a moving average crossover alert on my phone.Presently i configured the alert on a website ALERT FX .com and only gets to my email box only. I spend too much time on my laptop hoping to catch a valid trade.HELP ME PLEASE.

  • 420florida

    Shoot! My first signal using the system, a Sell on EurUsd. I was just stopped out on a trend reversal. Bummer… Is this system not effective on EurUsd? I was hoping it was because of the lower spread. Guess I’ll wait and see what happens on the next one.

  • 420florida

    Okay, what the heck am I doing wrong?? Just had another stop out on the GbpUsd pair. Can somebody help? That is two in a row, -LOSSES- from the first two I’ve tried. HELP!

  • 420florida

    Shoot! My first signal using the system, a Sell on EurUsd. I was just stopped out on a trend reversal. Bummer… Is this system not effective on EurUsd? I was hoping it was because of the lower spread. Guess I’ll wait and see what happens on the next one.

  • 420florida

    Okay, what the heck am I doing wrong?? Just had another stop out on the GbpUsd pair. Can somebody help? That is two in a row, -LOSSES- from the first two I’ve tried. HELP!

  • thestix

    hey Florida, I have tried the system on E/U and its no where near as affective as on G/U

  • thestix

    hey Florida, I have tried the system on E/U and its no where near as affective as on G/U

  • JamesFord

    Well, guys. You ask pretty much of the same questions as were reviewed in previous vids. Just look last videos and you’ll find the answer. Connecting to MACD I can say that you can test the system with as many appliances as you want and see the result. No point in asking that kind of questions.

  • TraderBoy

    Hey PipSurfer: I just wanted to ask you how you made those custom “trend-change candles” that appear on your chart (you know the purple ones). I am still trying to get acquainted with the MT4 platform and would find the implementation of trend-change candles very useful.

  • JamesFord

    Well, guys. You ask pretty much of the same questions as were reviewed in previous vids. Just look last videos and you’ll find the answer. Connecting to MACD I can say that you can test the system with as many appliances as you want and see the result. No point in asking that kind of questions.

  • TraderBoy

    Hey PipSurfer: I just wanted to ask you how you made those custom “trend-change candles” that appear on your chart (you know the purple ones). I am still trying to get acquainted with the MT4 platform and would find the implementation of trend-change candles very useful.

  • Dow2

    TradeBoy, there is a MT indicator for this system which does samething as you manually setup those MACD/EMA/RSI/STOCH, use it would save you lots of time. as it will also sent email alert when a valid entry appear.

  • Dow2

    TradeBoy, there is a MT indicator for this system which does samething as you manually setup those MACD/EMA/RSI/STOCH, use it would save you lots of time. as it will also sent email alert when a valid entry appear.

  • netcoil

    Dow2, Please where can i find the MT indicator that gives a valid signal for the cowabunga system that you mentioned above. Thanks

  • netcoil

    Dow2, Please where can i find the MT indicator that gives a valid signal for the cowabunga system that you mentioned above. Thanks