Cowabunga System Daily Update: Wednesday, 02/17/2010

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 up the entire day.

Today I only looked for long trades.

News events to watch for today :

  • 4:30am EST- UK Bank of England Meeting Minutes
  • 8:30am EST- US Building Permits
  • 9:15am EST- US Industrial Production
  • 2:00pm EST- US Federal Open Market Committee Meeting Minutes

Today’s Surf

2:30am EST- There was a moving average crossover for a long trade. RSI was greater than 50, stochastics were trending up and MACD went from negative to positive. This was a valid entry.

The entry was at the close of the candle at 1.5783 with a stop at the most recent swing low at 1.5758. Since I was 17 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.5800.

Entry: Long at 1.5783 Stop: 1.5758 Target: 1.5800

2:45am EST- My target was hit. Price didn’t make a clean break so I took my final profit. I exited at 1.5798.

7:15am EST- There was a moving average crossover for a long trade. RSI was greater than 50, stochastics were trending up and MACD went from negative to positive. This was a valid entry.

The entry was at the close of the candle at 1.5774 with a stop at the most recent swing low at 1.5738. Since I was 26 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.5800.

Entry: Long at 1.5774 Stop: 1.5738 Target: 1.5800

8:00am EST- My target was hit. Price didn’t make a clean break so I took my final profit. I exited at 1.5795.

entry2

Trade Result: +15 +21= +36 pips (NOT INCLUDING SPREAD) R-Multiple: 0.60; 0.58

News events to watch for tomorrow:

  • 4:30am EST- UK Major Banks Mortgage Approvals
  • 6:00am EST- UK U.K. CBI Industrial Trends
  • 8:30am EST- US Producer Price Index
  • 10:00am EST- US Philadelphia Fed.

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.

  • gabby

    Hi. I’m new to this site but would still like to make a comment. I live on the opposite side of the earth from you and the time difference is a headache to work out when trying to follow the trades on the blog. Is there a possibilty to set the blog to my local time which is GMT +10.
    Thanks
    gabby

  • darkcorner

    Im relatively new, but I have already noticed that there are some valid signals that you skip over. With good reason most times. How do you tell ahead of time not to enter a trade when the system indicates that its ok?

  • darkcorner

    Im relatively new, but I have already noticed that there are some valid signals that you skip over. With good reason most times. How do you tell ahead of time not to enter a trade when the system indicates that its ok?