Cowabunga System Daily Update: Tuesday, 04/27/2010

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 until 8am EST. From 4am – 8am EST a new trend change candle formed and changed the trend from up to DOWN. After 8am EST, the trend remained down the rest of the day.

Today I only looked for long trades until 8am EST. After 8am EST, I only looked for short trades.

News events to watch for today :

  • 4:30am EST- UK BBA Loans for House Purchase
  • 6:00am EST- UK CBI Distributive Trades
  • 10:00am EST- US Consumer Confidence

Today’s Surf

10:15am EST- There was a moving average crossover for a short trade. RSI was less than 50, stochastics were trending down and MACD was positive and losing value. This was a valid entry.

The entry was at the close of the candle at 1.5331 with a stop at the most recent swing high at 1.5352. Since I was 31 pips away from the nearest 50 or 00 level I decided to put my initial target at 1.5300.

Entry: Short at 1.5331 Stop: 1.5352 Target: 1.5300

11:15am EST- My target was hit. Price didn’t make a clean break so I took my final profit. I exited at 1.5302.

entry2

Trade Result: +29 pips (NOT INCLUDING SPREAD) R-Multiple: 1.38

News events to watch for Wednesday:

  • 10:30am EST- US Crude Oil Inventories
  • 2:15pm EST- US FOMC Statement

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.

14 comments

  1. BeerMonster

    Hey, Pip Surfer. Regarding the CFTC thing, has anyone set up a Facebook page? I can be a pretty good way to get the word out.

    I would send a comment in but am not too sure if they will take much notice of a Brit. The thing that worries me is that if the US goes down this route, the UK will probably follow.

    Reply
  2. BeerMonster

    D’oh! Answered my own question, found a group called

    How Many Forex Traders Against CFTC Forex Proposal!!!

    not sure how many others are out there.

    Reply
  3. mraugustyn

    Dear Pip Surfer,

    A question in regards to when you are watching for a clean break. Say the current candle touches your exit and then starts to retrace. If this is a large candle, say 20+ pips, at what point do you decide that there is no chance of it ending in a clean break and hence get out. Because clearly if you wait till the close of the candle, and it retraces say the whole span of a large candle instead of just getting out at your T/P like you could have, you may lose say 20 pips.

    So in other words do you have a set value in your mind when you will exit in such a situation? If it retraces 5 pips, 10? Hopefully I have presented my question clearly.

    Thank you.

    Reply
  4. BeerMonster

    Hey, Pip Surfer. Regarding the CFTC thing, has anyone set up a Facebook page? I can be a pretty good way to get the word out.

    I would send a comment in but am not too sure if they will take much notice of a Brit. The thing that worries me is that if the US goes down this route, the UK will probably follow.

    Reply
  5. BeerMonster

    D’oh! Answered my own question, found a group called

    How Many Forex Traders Against CFTC Forex Proposal!!!

    not sure how many others are out there.

    Reply
  6. mraugustyn

    ***Please disregard my above post… The video on the blog entry of 03/16/2010 covers this perfectly.***

    Reply
  7. shwata

    Hi there
    how do you read the times at the bottom of of the chart? In the 15 min chart its all like 1hr apart or 1hr15min apart. How do I fix this?
    Thanks. Shwata Brijmohan.

    Reply
  8. mraugustyn

    Dear Pip Surfer,

    A question in regards to when you are watching for a clean break. Say the current candle touches your exit and then starts to retrace. If this is a large candle, say 20+ pips, at what point do you decide that there is no chance of it ending in a clean break and hence get out. Because clearly if you wait till the close of the candle, and it retraces say the whole span of a large candle instead of just getting out at your T/P like you could have, you may lose say 20 pips.

    So in other words do you have a set value in your mind when you will exit in such a situation? If it retraces 5 pips, 10? Hopefully I have presented my question clearly.

    Thank you.

    Reply
  9. mraugustyn

    ***Please disregard my above post… The video on the blog entry of 03/16/2010 covers this perfectly.***

    Reply
  10. mraugustyn

    On second thought I do have a question for you pip surfer.

    Do you believe that this system would still be profitable if you did not bother with watching for “clean breaks,” and simply stuck with firm SL’s and TPs from entry? It seems to me that it still would, but just to a lesser degree.

    I ask because as one trading from the U.S. I can deal with being woken up a couple times a night to “set” trades, but staying up to watch them till completion is another story.

    Thanks for your insight here.

    best regards,

    mraugustyn

    Reply
  11. shwata

    Hi there
    how do you read the times at the bottom of of the chart? In the 15 min chart its all like 1hr apart or 1hr15min apart. How do I fix this?
    Thanks. Shwata Brijmohan.

    Reply
  12. mraugustyn

    On second thought I do have a question for you pip surfer.

    Do you believe that this system would still be profitable if you did not bother with watching for “clean breaks,” and simply stuck with firm SL’s and TPs from entry? It seems to me that it still would, but just to a lesser degree.

    I ask because as one trading from the U.S. I can deal with being woken up a couple times a night to “set” trades, but staying up to watch them till completion is another story.

    Thanks for your insight here.

    best regards,

    mraugustyn

    Reply
  13. Namibia

    Beermonster,,,

    I am trading out of the UK too. I have recently decided to take my money out of the USA and I am trading now from Singapore. I think that would be a sensible business decision to make. It depends on you where your broker is located. I use Oanda and they have a branch in Singapore. If the regulations are approved in the states You would be safe in Singapore. Just a suggestion

    Reply
  14. Namibia

    Beermonster,,,

    I am trading out of the UK too. I have recently decided to take my money out of the USA and I am trading now from Singapore. I think that would be a sensible business decision to make. It depends on you where your broker is located. I use Oanda and they have a branch in Singapore. If the regulations are approved in the states You would be safe in Singapore. Just a suggestion

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>