Cowabunga System Daily Update: Tuesday, 03/02/2010

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 Purchasing Manager Index Construction

Today’s Surf

12:45am 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 1.4923 with a stop at the most recent swing high at 1.4937. Since I was 23 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.4900.

Entry: Short at 1.4923 Stop: 1.4937 Target: 1.4900

1:15am EST- Unfortunately I was stopped out of my trade.

1:30am 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 1.4891 with a stop at the most recent swing high at 1.4938. Since I was 41 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.4850.

Entry: Short at 1.4891 Stop: 1.4938 Target: 1.4850

3:30am EST- Unfortunately I got stopped out of my trade.

4:15am EST- There was a valid signal here but because it was right before news I did not enter.

9:45am EST- There was a moving average crossover for a short trade. RSI was less than 50, stochastics were trending up and MACD went from positive to negative. This was a valid entry.

The entry was at the close of the candle at 1.4951 with a stop at the most recent swing high at 1.4989. Since I was only 1 pip away from the nearest 50 or 00 level (1.4950), I decided to go for the same amount of pips I was risking on the trade, which in this case was 38. This put my initial target at 1.4913.

Entry: Short at 1.4951 Stop: 1.4989 Target: 1.4913

10:15am EST- My target was hit. Price didn’t make a clean break so I took my final profit. I exited at 1.4915.

entry2

Trade Result: -14 -47 +36= -25 pips (NOT INCLUDING SPREAD) R-Multiple: -1.00; -1.00; 0.94

News events to watch for Wednesday:

  • 4:30am EST- UK Official Reserves
  • 10:00am EST- US ISM Non-Manufacutring Composite
  • 10:30am EST- US DOE U.S. Crude Oil Inventories

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.

  • gabriel888

    Hi Pip Surfer,
    Thanks for your update once again..
    Great job n’ do take care ya’..
    Cheers,Gabriel.

  • Phepi

    hi PipSurfer!
    thanks for update, I have a question: What does R-multiple below your chart mean?
    best regards Phepi

  • gabriel888

    Hi Pip Surfer,
    Thanks for your update once again..
    Great job n’ do take care ya’..
    Cheers,Gabriel.

  • Pipspy007

    Surfer bro, this is my first post. Could you please tell me if it will be a valid long entry if the RSI is above 80.

  • Phepi

    hi PipSurfer!
    thanks for update, I have a question: What does R-multiple below your chart mean?
    best regards Phepi

  • PipSurfer

    @phepi- R-multiple is the Reward/Risk Ratio.

    @pipsy- Click on this link: /blogs/pip-my-system/so_youve_finished_the_school_o.html

  • Pipspy007

    Surfer bro, this is my first post. Could you please tell me if it will be a valid long entry if the RSI is above 80.

  • PipSurfer

    @phepi- R-multiple is the Reward/Risk Ratio.

    @pipsy- Click on this link: link to babypips.com