Cowabunga System Daily Update: Thursday, 02/18/2010

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 the entire day.

Today I only looked for short trades.

News events to watch for today :

  • 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.

Today’s Surf

2:00am EST- There was a moving average crossover for a short trade. RSI was less than 50, stochastics were trending up and MACD was positive and losing value. This was a valid entry.

The entry was at the close of the candle at 1.5647 with a stop at the most recent swing high at 1.5681. Since I was 47 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.5600.

Entry: Short at 1.5647 Stop: 1.5681 Target: 1.5600

4:15am EST- My target wasn’t hit by this time and I knew that news was coming out at 4:30am. I manually exited my trade at 1.5621.

11:30am EST- There was a moving average crossover for a short trade. RSI was less than 50, stochastics were trending up and MACD was positive and losing value. This was a valid entry.

The entry was at the close of the candle at 1.5598 with a stop at the most recent swing high at 1.5673. Since I was 48 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.5550.

Entry: Short at 1.5598 Stop: 1.5673 Target: 1.5550

12:15pm EST- My target wasn’t hit by this time and since it was past noon I used my discretion to exit. I tried to grab as many pips as possible and was able to exit at 1.5560.

entry2

Trade Result: +26 +38= +64 pips (NOT INCLUDING SPREAD) R-Multiple: 0.76; 0.50

News events to watch for tomorrow:

  • 4:30am EST- UK Retail Sales
  • 8:30am EST- US Consumer Price Index

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.

  • BOB6661

    where can i get your trend change candle indicator. and i like to trade on the w1 chart will your system work on it. thankx and your site has been a big help to me so keep up the good work!

  • kblaze

    hey dude, can you let me know what you set your MA period, RSA and Stoch settings are? Just trying to match it up on my end while I watch

  • Bondtrader

    Hi Pipsurfer,

    I just had a question about using the 4hr chart as the main trend to determine which direction to take trades.Why the 4hr chart ? Why not the 1hr or daily ? I have seen other systems which use the 1hr because so many banks , hedge funds and institutions seem to follow the 1hr as the main TF to watch? Just curious how you decided on the 4hr chart? The Cowabunga system works great and thanks again for the daily videos and walking us through the trades as they develop each day. Best in Life .

  • BOB6661

    where can i get your trend change candle indicator. and i like to trade on the w1 chart will your system work on it. thankx and your site has been a big help to me so keep up the good work!

  • kblaze

    hey dude, can you let me know what you set your MA period, RSA and Stoch settings are? Just trying to match it up on my end while I watch

  • Bondtrader

    Hi Pipsurfer,

    I just had a question about using the 4hr chart as the main trend to determine which direction to take trades.Why the 4hr chart ? Why not the 1hr or daily ? I have seen other systems which use the 1hr because so many banks , hedge funds and institutions seem to follow the 1hr as the main TF to watch? Just curious how you decided on the 4hr chart? The Cowabunga system works great and thanks again for the daily videos and walking us through the trades as they develop each day. Best in Life .

  • Mamoru

    What has the average profitability on a monthly basis been for this method over the last few months?

  • aidanphilipson

    Hi there, quick message to say how much i appreciate your blog, its exceptional. Could you tell me the times which you trade and times that you do not trade. I understand you do not trade close to economic news/data.

    All the best

    COWABUNGA

    Aidan

  • Mamoru

    What has the average profitability on a monthly basis been for this method over the last few months?

  • lbranjord

    This question goes out to anyone. What’s your take on trading other major pairs with this system? Ex: USD/JPY, EUR/USD, USD/CHF. I gain profits this way, but I do keep my lot size smaller for anything other than GBP/USD.

    Just looking for opinions out there. GREAT SYSTEM/THREAD! Cowabunga.

  • aidanphilipson

    Hi there, quick message to say how much i appreciate your blog, its exceptional. Could you tell me the times which you trade and times that you do not trade. I understand you do not trade close to economic news/data.

    All the best

    COWABUNGA

    Aidan

  • mabidashraf

    @BOB6661: This trend change candle is the feature of Xtick.com

  • mabidashraf

    @kblaze: checkout this page for all the chart settings /blogs/pip-my-system/so_youve_finished_the_school_o.html

  • mabidashraf

    @mamoru: checkout for average profitability over the last few months at this page: link to meetpips.com

  • mabidashraf

    @aidanphilipson: Cowabunga system is trade from 12 midnight to 12 noon EST time.

  • mabidashraf

    @lbranjord: This system tends to work fine with volatile and trending pairs i.e. JPY and GBP crosses.

  • lbranjord

    This question goes out to anyone. What’s your take on trading other major pairs with this system? Ex: USD/JPY, EUR/USD, USD/CHF. I gain profits this way, but I do keep my lot size smaller for anything other than GBP/USD.

    Just looking for opinions out there. GREAT SYSTEM/THREAD! Cowabunga.

  • mabidashraf

    @BOB6661: This trend change candle is the feature of Xtick.com

  • mabidashraf

    @kblaze: checkout this page for all the chart settings link to babypips.com

  • mabidashraf

    @mamoru: checkout for average profitability over the last few months at this page: link to meetpips.com

  • mabidashraf

    @aidanphilipson: Cowabunga system is trade from 12 midnight to 12 noon EST time.

  • mabidashraf

    @lbranjord: This system tends to work fine with volatile and trending pairs i.e. JPY and GBP crosses.

  • tigerbravo1

    Just want to say thanks for the great vids & time & effort you have given all of us newbie traders. Your explanations have given me insperation. Keep em comming dude.

  • tigerbravo1

    Just want to say thanks for the great vids & time & effort you have given all of us newbie traders. Your explanations have given me insperation. Keep em comming dude.

  • PipSurfer

    wow mabidashraf you nailed those comments. Thanks again for always being a helping hand :)

    For everyone who asked questions- Mabidashraf is like my right hand man and his answers are very accurate. I have yet to see him answer wrong on a question, haha.

    Great work everyone and happy trading!

    -PS

  • PipSurfer

    wow mabidashraf you nailed those comments. Thanks again for always being a helping hand :)

    For everyone who asked questions- Mabidashraf is like my right hand man and his answers are very accurate. I have yet to see him answer wrong on a question, haha.

    Great work everyone and happy trading!

    -PS