Cowabunga System Daily Update: Thursday, 03/25/2010

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 :

  • 5:30am EST- UK Retail Sales Ex Gas
  • 8:30am EST- US Initial Jobless Claims

Today’s Surf

1:00am EST- There was a moving average crossover for a short trade. RSI was less than 50, stochastics were trending down and MACD went from positive to negative. 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 1.4910. 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: 1.4910 Target: 1.4850

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

8:00am EST- There was a moving average crossover for a short trade. RSI was less than 50, stochastics were trending down but MACD was already negative from the previous candle. This cancelled out the signal and I did not enter. Even if it was a valid signal I still wouldn’t have entered because it was right before the 8:30am EST news.

entry2

Trade Result: -19 pips (NOT INCLUDING SPREAD) R-Multiple: -1.00

News events to watch for Friday:

  • 8:30am EST- US Gross Domestic Product
  • 9:55am EST- US U. of Michigan Confidence

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.

  • tjcny

    New to the system. I have a question about entries. You say that you wait for a retracement and then go in the direction of the trend after the retracement is over. In backtesting your system, it seems to me that one could lose many pips doing this and that many of the trades I’ve backtested by merely going into the trade after the close of the crossover candle don’t get stopped out or have the trade reverse. How necessary is it to wait for a retracement and how many candles should one wait before giving up waiting for a retracement that doesn’t come? Hope I am not being too unclear.

  • tjcny

    New to the system. I have a question about entries. You say that you wait for a retracement and then go in the direction of the trend after the retracement is over. In backtesting your system, it seems to me that one could lose many pips doing this and that many of the trades I’ve backtested by merely going into the trade after the close of the crossover candle don’t get stopped out or have the trade reverse. How necessary is it to wait for a retracement and how many candles should one wait before giving up waiting for a retracement that doesn’t come? Hope I am not being too unclear.

  • kingnai

    I made my first Trade last night with your system and came out with 35 pips…. yeah…. I was very confident except for the fact that the set up came right before midnight Eastern Time. This was the first trade I have made that I completly understoon the entry point and stop loss. Thank you very much.

    One quick question, If everything lines up but RSI is only say 49.30 but rising on a long would you enter?

  • kingnai

    I made my first Trade last night with your system and came out with 35 pips…. yeah…. I was very confident except for the fact that the set up came right before midnight Eastern Time. This was the first trade I have made that I completly understoon the entry point and stop loss. Thank you very much.

    One quick question, If everything lines up but RSI is only say 49.30 but rising on a long would you enter?

  • mabidashraf

    @kingnai: The answer to your quick question is NO simply because it does not meet the rules of the system.

  • safaria2

    I have a question regarding the charts you use. It says the chart is from FXCM. What is the name of the chart software?

  • Heston83

    Is there a place where the rules for Cowabunga are clearly listed? No extra stuff? Also, im having trouble getting xtick to show the cable. Not sure why, maybe the demo wont show that one?? What do you think?

  • mabidashraf

    @kingnai: The answer to your quick question is NO simply because it does not meet the rules of the system.

  • safaria2

    I have a question regarding the charts you use. It says the chart is from FXCM. What is the name of the chart software?

  • joey13

    Hi there,new to the system and forex,and very exited about trying out the system,I use Dealbook 360 but I can’t seem to get the MACD indicator the same as yours,I have entered the 12,26,9 then with “style setup” I have: MACD,MACD sig,MACD green hgm,MACD red hgm,not sure which ones to click “visible & draw as histogram” I hope this makes sense…well back to reading your blog again,lot of catching up to do :-)

  • Heston83

    Is there a place where the rules for Cowabunga are clearly listed? No extra stuff? Also, im having trouble getting xtick to show the cable. Not sure why, maybe the demo wont show that one?? What do you think?

  • joey13

    Hi there,new to the system and forex,and very exited about trying out the system,I use Dealbook 360 but I can’t seem to get the MACD indicator the same as yours,I have entered the 12,26,9 then with “style setup” I have: MACD,MACD sig,MACD green hgm,MACD red hgm,not sure which ones to click “visible & draw as histogram” I hope this makes sense…well back to reading your blog again,lot of catching up to do :-)