Cowabunga System Daily Update: Tuesday, 05/25/2010

The CFTC may be changing the rules for retail Forex traders in the US. This affects many of us in a negative way and we need your help getting our voices heard.

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

GBPUSD 240 min chart

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 GDP
  • 10:00am EST- US Consumer confidence

Today’s Surf

10:30am 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 1.4316 with a stop at the most recent swing high at 1.4358. Since I was only 16 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.4300.

Entry: Short at 1.4316 Stop: 1.4358 Target: 1.4300

11:45am EST- Unfortunately I got stopped out of my trade.

entry2

Trade Result: -42 pips (NOT INCLUDING SPREAD) R-Multiple: -1.00

News events to watch for Wednesday:

  • 8:30am EST- US Durable goods orders
  • 10:00am EST- US New Home Sales

For a complete list of news events check out our Forex Economic Calendar. If you have any questions, check out the Cowabunga FAQs or discuss the Cowabunga System in our Forex Forums.

  • -MATREX

    Hello
    I like your blog, keep up the good work. Please let me ask, do you have statistics about the key reversals in this strategy?
    Thanks M

  • piptarts

    Hi Pipsurfer,

    I’ve been watching a lot of your vids for the past month. Bigtime thanks for keeping this dairy!

    I wanted to ask you why, in todays trade, you didn’t get out as soon as there was a new candle to the upside? Isn’t it a bit tricky to still be in a trade when the trend is changing? Or has the system proven otherwise?

    Regards!

  • piptarts

    whoops… i meant diary, cow-abunga!

  • daninvest

    Today i exactly did the same trade with the same tp and sl level :-)
    As you know that trade runs in the sl level. I wasn’t sure if really did everything right with your strategie or perhaps my indikators are not set up correctly.
    Now in your video i see that you did exactly the same trade so thanks even we lost some money today but i am sure that i undertood your strategie right ;-)

  • Jabba1

    Hi surfers, pipsurfer and pip school mention that you only want to have 2-3% of your total account open on any trade. How would I do these calculations?

    I am practice trading now but the system is working and I plan to open a real account in a few months. I only have 3k of capital to open an account with. Do you think it will be hard to make any real money with just 3k? Because with 3k I can only trade 10k lots right? And this wouldn’t yield very much profits even when I win. Correct or am I doing some calculation wrong? Thanks so much, blessings!

  • Chilis

    to Jabba1, try OANDA with a leverage 40>1, so you need only $2500, with that you can make trades with regular lots, and you would be making $10 a pip with a EURUSD pair, but once again, please note that this is very risky since you could also lose $10USD a pip, so after a couple bad trades a margin call would be inevitable. but it you happen to be lucky enough as BigPippin and make around 200 pips a month then you would be making around $2000 a month with only $3000, 66.66% profit, not bad

  • Pasewalk

    Hi
    Could you tell me how a MA crossover is confirmed? Does the 15 minute candle have to complete after a MA crossover to be valid? I dont have the ability to paint candles so it would be helpful to know the rule here
    Thanks

  • -MATREX

    Hello
    I like your blog, keep up the good work. Please let me ask, do you have statistics about the key reversals in this strategy?
    Thanks M

  • piptarts

    Hi Pipsurfer,

    I’ve been watching a lot of your vids for the past month. Bigtime thanks for keeping this dairy!

    I wanted to ask you why, in todays trade, you didn’t get out as soon as there was a new candle to the upside? Isn’t it a bit tricky to still be in a trade when the trend is changing? Or has the system proven otherwise?

    Regards!

  • piptarts

    whoops… i meant diary, cow-abunga!

  • daninvest

    Today i exactly did the same trade with the same tp and sl level :-)
    As you know that trade runs in the sl level. I wasn’t sure if really did everything right with your strategie or perhaps my indikators are not set up correctly.
    Now in your video i see that you did exactly the same trade so thanks even we lost some money today but i am sure that i undertood your strategie right ;-)

  • Jabba1

    Hi surfers, pipsurfer and pip school mention that you only want to have 2-3% of your total account open on any trade. How would I do these calculations?

    I am practice trading now but the system is working and I plan to open a real account in a few months. I only have 3k of capital to open an account with. Do you think it will be hard to make any real money with just 3k? Because with 3k I can only trade 10k lots right? And this wouldn’t yield very much profits even when I win. Correct or am I doing some calculation wrong? Thanks so much, blessings!

  • Chilis

    to Jabba1, try OANDA with a leverage 40>1, so you need only $2500, with that you can make trades with regular lots, and you would be making $10 a pip with a EURUSD pair, but once again, please note that this is very risky since you could also lose $10USD a pip, so after a couple bad trades a margin call would be inevitable. but it you happen to be lucky enough as BigPippin and make around 200 pips a month then you would be making around $2000 a month with only $3000, 66.66% profit, not bad

  • Pasewalk

    Hi
    Could you tell me how a MA crossover is confirmed? Does the 15 minute candle have to complete after a MA crossover to be valid? I dont have the ability to paint candles so it would be helpful to know the rule here
    Thanks

  • DonkeyDonut

    hi,
    first of all nice work! two questions. i am going to try this on a other platform then xtick, they dont provide 4 hours chart only 3 hours. would it be ok to use this for general trend?
    second question. you set target for 16pip in this trade stop loss was 42 pips away? so you risked 3 times more then you would get if target is reached? what kind of hitquote does this system have?

  • DonkeyDonut

    hi,
    first of all nice work! two questions. i am going to try this on a other platform then xtick, they dont provide 4 hours chart only 3 hours. would it be ok to use this for general trend?
    second question. you set target for 16pip in this trade stop loss was 42 pips away? so you risked 3 times more then you would get if target is reached? what kind of hitquote does this system have?