Cowabunga System Daily Update: Wednesday, 01/27/2010

The CFTC may be changing the rules for retail traders in the US. This affects many of us in a negative way and we need your help getting our voices heard.

Read more of the details

I can not find better words to describe my position on all this than those from Andrei Pehar, Chief Currency Strategist at fxKnight.com.  

Andrei says: "I am not opposed to regulation nor regulatory agencies. But that regulation needs to be fair, transparent, and open to public input. Otherwise it becomes corrupt and self-serving. Sure high leverage can get you into trouble if used thoughtlessly. Sure hedging when not done properly turns one loss into two. But I believe the cure is EDUCATION, not restricting what people can and cannot do with their investment decisions. Guide, don’t dominate – government was invented to protect people and their property, not to limit their potential.

We at BabyPips.com disagree with the CFTC proposal.

If you disagree as well, you may submit your comments to secretary@cftc.gov.  

Include “Regulation of Retail Forex” in the subject line of the message and the identification number RIN 3038-AC61 in the body of the message. Please, help us to spread the word!

I think this is a very important matter that affects us all, and we should try our hardest to ensure that things will be done for the best of the trading community.

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

Main Trend

Current Trend

The trend stayed down until 7am EST. From 3am – 7am EST, a new trend change candle formed and changed the trend from down to UP. After 7am EST, the trend remained up the rest of the day.

Today I only looked for short trades until 7am EST. After 7am EST, I only looked for long trades.

News events to watch for today :

  • 6:00am EST- UK CBI Realized Sales
  • 10:00am EST- US New Home Sales
  • 2:15pm EST- US FOMC Statement

Today’s Surf

3:15am EST- There was a moving average crossover for a short trade. RSI was less than 50, stochastics were trending down and MACD was positive. This was a valid entry.

The entry was at the close of the candle at 1.6126 with a stop at the most recent swing high at 1.6160. Since I was 26 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.6100.

Entry: Short at 1.6126 Stop: 1.6160 Target: 1.6100

4:30am EST- Unfortunately I got stopped out of my trade.

entry2

Trade Result: -34 pips (NOT INCLUDING SPREAD) R-Multiple: -1.00

News events to watch for tomorrow:

  • 8:30am EST- US Core Durable Goods Orders m/m

For a complete list of news events check out our Forex Economic Calendar.
Questions? Read the Cowabunga FAQ.

Want to discuss the Cowabunga System? Visit our Forex Forums.

  • addefta

    Hi.First of all, thanks a lot for your videos and blog.It really help us to understand your system.And put us or you some questions :). I saw your records for a year and a half, and it lloks impressive.But.. I noticed one thing : you said that you didn’t count the spread.Which is usually 3 pip.And, if you multiply those 3 pip with the amount of trades that you had, and substract from the total profits, I don’t know if it will remain positive.
    Don’t get me wrong.I love this system, I am watching you for a while now, it is the only system that I trade on a demo account.I keep notes about my trades and when I will have at least 100 trades, I will draw some conclusions. Until then, I can only ask :)

  • PipSurfer

    @addefta- Great question! You can test out your theory here:

    http://www.meetpips.com/members/PipSurfer/stats?scope=overall&trading_system=

    Click on “overall trades” in the dropdown bar on the right. You can see I’ve had 125 total trades with 2,227 pips gained. So 125 total trades multiplied by 3 pips each equals 375 pips. Subtract that from the total pips (2,227) and you get a net gain of 1,852 pips.

    So you can see that you are still profitable even with the spread :)

    Happy trading!

  • addefta

    Hi.First of all, thanks a lot for your videos and blog.It really help us to understand your system.And put us or you some questions :). I saw your records for a year and a half, and it lloks impressive.But.. I noticed one thing : you said that you didn’t count the spread.Which is usually 3 pip.And, if you multiply those 3 pip with the amount of trades that you had, and substract from the total profits, I don’t know if it will remain positive.
    Don’t get me wrong.I love this system, I am watching you for a while now, it is the only system that I trade on a demo account.I keep notes about my trades and when I will have at least 100 trades, I will draw some conclusions. Until then, I can only ask :)

  • PipSurfer

    @addefta- Great question! You can test out your theory here:

    http://www.meetpips.com/members/PipSurfer/stats?scope=overall&trading_system=

    Click on “overall trades” in the dropdown bar on the right. You can see I’ve had 125 total trades with 2,227 pips gained. So 125 total trades multiplied by 3 pips each equals 375 pips. Subtract that from the total pips (2,227) and you get a net gain of 1,852 pips.

    So you can see that you are still profitable even with the spread :)

    Happy trading!

  • DrGoodPips

    I am completely new to this system and am using you blog for education / back testing purposes (thanks for the great info). I am using the system on my own account to judge entries and then comparing against your entries. On this particular day, at 0800 GMT the trend (4hr) transitioned to bullish. Why did you not enter a buy trade at this time (about the time of your SL)?

  • DrGoodPips

    I am completely new to this system and am using you blog for education / back testing purposes (thanks for the great info). I am using the system on my own account to judge entries and then comparing against your entries. On this particular day, at 0800 GMT the trend (4hr) transitioned to bullish. Why did you not enter a buy trade at this time (about the time of your SL)?

  • Pipster4lyphe

    Hi Pipsurfer…I think the reason that you lost on this trade was that on the 4H you determined the cross over to be looking for long trades…..however on the 15 mins you decided to look for short and I guess that’s the reason you had lost…if you rewind the tape you will realize that you had initially say that you were looking for long trade …..

  • Pipster4lyphe

    Hi Pipsurfer…I think the reason that you lost on this trade was that on the 4H you determined the cross over to be looking for long trades…..however on the 15 mins you decided to look for short and I guess that’s the reason you had lost…if you rewind the tape you will realize that you had initially say that you were looking for long trade …..