Cowabunga System Daily Update: Wednesday, 03/31/2010

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 :

  • 8:15am EST- US ADP Employment Change
  • 9:45am EST- US Chicago Purchasing Manager
  • 10:00am EST- US Factory Orders

Today’s Surf

12:15am EST- There was a moving average crossover for a short trade. RSI was less than 50, MACD was negative and gaining value, but stochastics were trending down. This cancelled out the signal and I did not enter.

3:30am 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 1.5093 with a stop at the most recent swing low at 1.5042. Since I was only 7 pips away from the nearest 50 or 00 level (1.5100), I decided to go for the same amount of pips I was risking on the trade, which in this case was 51. This put my initial target at 1.5144.

Entry: Long at 1.5093 Stop: 1.5042 Target: 1.5144

4:45am EST- My target was hit. Price didn’t make a clean break so I took my final profit. I exited at the close of the candle which happened to be right at my target at 1.5144.

10:45am EST- 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 at 1.5168 with a stop at the most recent swing low at 1.5118. Since I was 32 pips away from the nearest 50 or 00 level I decided to put my initial target at 1.5200.

Entry: Long at 1.5168 Stop: 1.5118 Target: 1.5200

12:00pm EST- My target was hit. Price didn’t make a clean break so I took my final profit. Since it was already past 12 noon I knew that I was going to go ahead and exit right at my target. Once the price reached 1.5200 I closed out my trade.

entry2

Trade Result: +83 pips (NOT INCLUDING SPREAD) R-Multiple: 1.00; 0.64

News events to watch for Friday:

  • 4:30am EST- UK Purchasing Manager Index Manufacturing
  • 8:30am EST- US Initial Jobless Claims
  • 10:00am EST- US ISM Manufacturing

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.

  • kingnai

    OK lets say the main trend is long so you are only looking for longs… Lets then say you get in to one and you reach your profit target and you are out. Now you are waiting for a crossover to the downside so you can wait for another crossover to enter another long trade as long as the 4 hour hasn’t changed on you.

    My question is does the crossover to the short side have to meet the standards for a short? Or does any crossover to the short side count as long as we meet all the criteria for the next long?

    Thanks
    -Ian
    Dunnellon, FL

  • mabidashraf

    Ian, second statement is correct i.e. any crossover to the short side count as long as we meet all the criteria for the next long. Hope that helps.

  • kingnai

    OK lets say the main trend is long so you are only looking for longs… Lets then say you get in to one and you reach your profit target and you are out. Now you are waiting for a crossover to the downside so you can wait for another crossover to enter another long trade as long as the 4 hour hasn’t changed on you.

    My question is does the crossover to the short side have to meet the standards for a short? Or does any crossover to the short side count as long as we meet all the criteria for the next long?

    Thanks
    -Ian
    Dunnellon, FL

  • mabidashraf

    Ian, second statement is correct i.e. any crossover to the short side count as long as we meet all the criteria for the next long. Hope that helps.

  • PipSurfer

    @ian- mabidashraf is correct. Thank you my friend

  • PipSurfer

    @ian- mabidashraf is correct. Thank you my friend

  • kingnai

    Thanks guys

  • kingnai

    Thanks guys