Cowabunga System Daily Update: 03/21/07
If this is your first time visiting this blog, read this first!
Main Trend
Current Trend= The trend remained up the entire day.
Today I only looked for long trades.
Today's Surf
11:15 am ET - There was a moving average crossover for a long trade. RSI was greater than 50, stochastics were trending up, and MACD was negative and gaining value. This was a valid entry. The entry was at the close of the candle which was at 9589 with a stop at the most recent swing low which was 9568. Since I was only 11 pips away from the nearest 00 level I decided to go for the same amount of pips I was risking, which in this case was 21. This put my target at 9610.
2:00 pm ET - My target is not hit and I know that the interest rate statement is about to come out so I decide to cut my losses and exit my trade. I exited at 9583.
Trade Result: -6 pips; R-Multiple= -0.28
Even though this trade would've worked into my favor if I had held onto it, the big news events such as can go either way and it basically becomes a coin flip. Now keep in mind, the risk was relatively small on this one. It was only 21 pips. So I can understand if you decided just to hold onto this and just hope for the best. For learning purposes however, I will strictly stick to my rules and since I said I would always exit before interest rate statements and NFP reports, I held true to my words and got out of the trade :) Thankfully it was only a small loss.
Questions? Read the Cowabunga FAQ.
Want to discuss the Cowabunga System? Visit our Forums.
Related Posts:
- Cowabunga System Daily Update: 02/08/07 14:14 08 February 2007
- Cowabunga System Daily Update: 07/16/07 21:21 16 July 2007
- Cowabunga System Daily Update: 06/19/07 16:04 19 June 2007
- Cowabunga System Daily Update: 04/13/07 15:37 15 April 2007
- Cowabunga System Daily Update: 09/12/07 15:08 12 September 2007
Comments (4)
Post a Comment
Forex Blog: Pip My System
Hi.
I noticed that you placed your trade 11 pips away from a 00 level - but you were after 21 pips. Seeing as the market was so close to the 00, which I have read can be a psychological point of either resistance or support, would it be better for a newbie to hold off on a trade so close to this level as a general rule? Or in your experience, does the market generally still "pip thru" this level to test it up to a point?
Thanks
PS, we got to sort this out. Your histogram is different than mine -- it was not so when BP was moderating. This difference is making it a bit difficult to follow your entries. Is your macd set at the standard 12, 26, 9 -- or is it different and if so what numbers are you using -thanks.
Hi, first of all this site and this system is awsome!! Thanks for the good work! Now to my question. How do you act if you miss a valid entry signal, but you see the trend is still in progess? Would you recommend a later entry?
pazdpips- what you can do is trail your stop when price does reach a 00 or 50 level (possibly breakeven) and then try to go for your actual target. That way you can't lose on the trade and still have the potential to hit your target.
Pinetree- My MACD settings are exactly the same as BPs. There were people saying they had discrepancies and I figured out why. See the FAQ page and you might have your answer.
Makiaveli- Seeing as this isn't the only system I trade, I don't really worry about missing a signal. However, if you are late and can get in at a better price then I don't see why you shouldn't enter. For example if you missed a long signal, if the price retraces back you can enter at a better price because your risk will be smaller and your profit will be greater. On the flipside if you missed a long signal and the price has already moved up, you shouldn't enter because your risk is greater and your reward is smaller. Hope that helps.