Cowabunga System Daily Update: Thursday, 05/27/2010

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 up the entire day.

Today I only looked for long trades.

News events to watch for today :

  • 8:30am EST- US GDP

Today’s Surf

5:00am 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 1.4526 with a stop at the most recent swing low at 1.4448. Since I was 24 pips away from the nearest 50 or 00 level, I decided to put my intial stop at 1.4550.

Entry: Long at 1.4526 Stop: 1.4448 Target: 1.4550

5:30am EST- My target was hit. Price made a clean break so I moved my stop to 1.4550 and set my next target for 1.4600.

5:45am EST- Unfortunately I got stopped out at 1.4550.

11:15am 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 1.4503 with a stop at the most recent swing low at 1.4408. Since I was 47 pips away from the nearest 50 or 00 level, I decided to put my intial stop at 1.4550.

Entry: Long at 1.4503 Stop: 1.4408 Target: 1.4550

11:45am EST- My target was hit. Price made a clean break. I could’ve moved my stop to 1.4550 and set my next target for 1.4600 but since it was late in the day I went ahead and used my discretion to exit. I manually closed out my trade at the close of the candle at 1.4566.

entry2

Trade Result: +24 +63= +87 pips (NOT INCLUDING SPREAD) R-Multiple: 0.30; 0.66

News events to watch for Friday:

  • 8:30am EST- US Core PCE Price Index
  • 9:45am EST- US Chicago PMI
  • 9:55am EST- US Univ of Mich Sent. 

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.

  • Dan89

    How come you did not trade yesterday ? I traded yesterday with this system and lost alot lol …. what kept you out of the market ?

  • Dan89

    I should of waqtched the video before i asked that question since you mentioned why in that video. Just one more question .. what woul dbe the correct time to trade this in GMT .. I live in London UK so im guessing it would be from 8am to 5 pm GMT for the system .. is this correct ?

  • mabidashraf

    Dan89 > I trade from 5am GMT to 5pm GMT which is the correct time to trade this system.

  • donfab31

    Hi Pipsurfer, first thank you very much for you great work. I am watching your videos every day!
    May I ask you how you calculate your profit target, I not sure understand very well? Why your profit targets were both at 1.4550 for example today? what is the 0 or 50 level? thank you very much

  • Dan89

    How come you did not trade yesterday ? I traded yesterday with this system and lost alot lol …. what kept you out of the market ?

  • Dan89

    I should of waqtched the video before i asked that question since you mentioned why in that video. Just one more question .. what woul dbe the correct time to trade this in GMT .. I live in London UK so im guessing it would be from 8am to 5 pm GMT for the system .. is this correct ?

  • mabidashraf

    Dan89 > I trade from 5am GMT to 5pm GMT which is the correct time to trade this system.

  • donfab31

    Hi Pipsurfer, first thank you very much for you great work. I am watching your videos every day!
    May I ask you how you calculate your profit target, I not sure understand very well? Why your profit targets were both at 1.4550 for example today? what is the 0 or 50 level? thank you very much

  • Bondtrader

    Hi Pipsurfer ,

    Have followed the Cowabunga System for several months now and find it a great system . However , my only criticism of the system is using the swing hi/low for S/L. Yesterdays 2 trades had a 78 pip stop and and a 95 pip stop? If you took these trades “live ” would you actually let a trade go against you 78 or 95 pips without getting out of the trade sooner, especially on a 15M chart ? It would be hard for me personally to risk 95 pips on a daily chart much less a 15M. I understand the use of the swing hi/ swing low as S/L but I would not teach ” newbie” traders to risk that amount on a 15M chart. Just speaking from over 15 years of trading experience.

    Best of trades ,

    Bondtrader

  • Bondtrader

    Hi Pipsurfer ,

    Have followed the Cowabunga System for several months now and find it a great system . However , my only criticism of the system is using the swing hi/low for S/L. Yesterdays 2 trades had a 78 pip stop and and a 95 pip stop? If you took these trades “live ” would you actually let a trade go against you 78 or 95 pips without getting out of the trade sooner, especially on a 15M chart ? It would be hard for me personally to risk 95 pips on a daily chart much less a 15M. I understand the use of the swing hi/ swing low as S/L but I would not teach ” newbie” traders to risk that amount on a 15M chart. Just speaking from over 15 years of trading experience.

    Best of trades ,

    Bondtrader

  • mraugustyn

    Pipsurfer,

    I too would like Bondtrader’s aforementioned question addressed. Thank you :)

  • mraugustyn

    Pipsurfer,

    I too would like Bondtrader’s aforementioned question addressed. Thank you :)

  • Jabba1

    Hey PipSurfer,
    I am learning so much from you blog, thanks again!
    I have a few questions to ask of your expertise;

    1) I would also like to use xtick. What brokers offer/use Xtick?
    2) Do you only trade tuesday through thrusdays?
    3) I would like to learn an effective “swing trade” system. What do you reccomend?

    Blessings to you!

    -Jake

  • Jabba1

    Hey PipSurfer,
    I am learning so much from you blog, thanks again!
    I have a few questions to ask of your expertise;

    1) I would also like to use xtick. What brokers offer/use Xtick?
    2) Do you only trade tuesday through thrusdays?
    3) I would like to learn an effective “swing trade” system. What do you reccomend?

    Blessings to you!

    -Jake

  • stevepatt

    @ Bondtrader

    If the stop loss is to big and takes you over 2% of your trading bank DON’T TAKE THE TRADE. Wait for the trade that will risks a maximum of 2% of your trading bank.

  • stevepatt

    @ Bondtrader

    If the stop loss is to big and takes you over 2% of your trading bank DON’T TAKE THE TRADE. Wait for the trade that will risks a maximum of 2% of your trading bank.

  • PIPhanger

    On a lot of your trades the main trend is showing either short or long but it looks like you don’t look at the RSI or the Stoch to make sure its showing the correct indication. Do we even need to use the RSI and Stoch on the 4hr charts.

    On the entry candle it looks like that is were the EMA’s cross. Are you taking the trade on the next candle that follows or you taking it on the entry candle as it’s still forming. If you could clear up were you are placing an entry and when that would be great.

  • thn5625

    I just started following Cowabanga.. However, does anyone know why he has posted anything since May? Maybe he’s on vacation? Any help is appreciated…

  • PIPhanger

    On a lot of your trades the main trend is showing either short or long but it looks like you don’t look at the RSI or the Stoch to make sure its showing the correct indication. Do we even need to use the RSI and Stoch on the 4hr charts.

    On the entry candle it looks like that is were the EMA’s cross. Are you taking the trade on the next candle that follows or you taking it on the entry candle as it’s still forming. If you could clear up were you are placing an entry and when that would be great.

  • thn5625

    I just started following Cowabanga.. However, does anyone know why he has posted anything since May? Maybe he’s on vacation? Any help is appreciated…