Cowabunga System Daily Update: Wednesday, 04/28/2010

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 :

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

Today’s Surf

1:30am 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 1.5253 with a stop at the most recent swing high at 1.5287. Since I was only 3 pips away from the nearest 50 or 00 level (1.5250), I decided to go for the same amount of pips I was risking on the trade, which in this case was 34. This put my initial target at 1.5219.

Entry: Short at 1.5253 Stop: 1.5287 Target: 1.5219

2:45am EST- My target was hit. Price made a clean break so I moved my stop to 1.5219 and set my next target for 1.5200.

3:00am EST- Unfortunately I got stopped out at my original target at 1.5219.

entry2

Trade Result: +34 pips (NOT INCLUDING SPREAD) R-Multiple: 1.00

News events to watch for Thursday:

  • 8:30am EST- US Initial Jobless Claims

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.

6 comments

  1. MEHung

    What hours do you personally trade on a daily basis and are you consistent with those trading hours? (seems like you stay up all night capturing BOTH the London and US sessions). And did you not have success trading the system during Tokyo session (perhaps the reason you only take trades after midnight)?

    Have you tried the system with other pairs like EURUSD?

    Do you stay in the trade if your indicators turn against you and you’re not yet profitable. (i.e. another crossover against you, etc.)?

    Thanks….Mike

    Reply
  2. mraugustyn

    Pip Surfer,

    First off thanks for replying to my question from yesterday. Second, I managed to execute last nights’ trade just like your example, so I think I’m getting the hang of this. Way radical dude!

    Another question: I know you have expressed you desire not to divulge your broker in the past, but would you be willing to share your additional news stream with us? As you indicated babypips missed the crude oil inventories. Looking around I think fxstreet’s economic calender would be a nice supplement.

    As you stated before the goal is to best replicate your results, and I think using the same news feeds/sources would be useful in that. If you care to share that would be great. Thanks again and I appreciate your dedication to this blog and continue to spread the word about it in the community.

    P.S… @mike, you can find the answers to your questions in the FAQ on the left.

    mraugustyn.

    Reply
  3. MEHung

    What hours do you personally trade on a daily basis and are you consistent with those trading hours? (seems like you stay up all night capturing BOTH the London and US sessions). And did you not have success trading the system during Tokyo session (perhaps the reason you only take trades after midnight)?

    Have you tried the system with other pairs like EURUSD?

    Do you stay in the trade if your indicators turn against you and you’re not yet profitable. (i.e. another crossover against you, etc.)?

    Thanks….Mike

    Reply
  4. mraugustyn

    Pip Surfer,

    First off thanks for replying to my question from yesterday. Second, I managed to execute last nights’ trade just like your example, so I think I’m getting the hang of this. Way radical dude!

    Another question: I know you have expressed you desire not to divulge your broker in the past, but would you be willing to share your additional news stream with us? As you indicated babypips missed the crude oil inventories. Looking around I think fxstreet’s economic calender would be a nice supplement.

    As you stated before the goal is to best replicate your results, and I think using the same news feeds/sources would be useful in that. If you care to share that would be great. Thanks again and I appreciate your dedication to this blog and continue to spread the word about it in the community.

    P.S… @mike, you can find the answers to your questions in the FAQ on the left.

    mraugustyn.

    Reply

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