Cowabunga System Daily Update: Tuesday, 06/08/2010

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 :

  • None

Today’s Surf

3:45am 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 1.4496 with a stop at the most recent swing high at 1.4527. Since I was 46 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.4450.

Entry: Short at 1.4496 Stop: 1.4527 Target: 1.4450

4:45am EST- My target was hit. Price made a clean break so I moved my stop to 1.4450 and set my next target for 1.4400.

5:00am EST- My 2nd target was hit! Price made a clean break so I moved my stop to 1.4400 and set my next target for 1.4350.

5:15am EST- Unfortunately I got stopped out at 1.4400.

entry2

Trade Result: +96 pips (NOT INCLUDING SPREAD) R-Multiple: 3.09

News events to watch for Wednesday:

  • 4:30am EST- UK Trade Balance
  • 10:00am EST- US Fed Chairman Bernanke Testifies

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.

8 comments

  1. MoneyMachine

    Thanks for this! I was wondering how do you use the moving average lines that you have on your chart? I know how to use one as shown in the babypips school but I am confused as to how to put 2 of them on my charts and use them.

    Reply
  2. nikim6

    At the time you took the short trade your 4hr chart was showing that the sto was positive. Does this not affect the trade, or do you disregard such a minor variable?

    Reply
  3. 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.

    Also does anyone know how in MT4 to change the price on the right of the chart to only show the 00 and 50 levels.

    Thanks

    Reply
  4. MoneyMachine

    Thanks for this! I was wondering how do you use the moving average lines that you have on your chart? I know how to use one as shown in the babypips school but I am confused as to how to put 2 of them on my charts and use them.

    Reply
  5. nikim6

    At the time you took the short trade your 4hr chart was showing that the sto was positive. Does this not affect the trade, or do you disregard such a minor variable?

    Reply
  6. 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.

    Also does anyone know how in MT4 to change the price on the right of the chart to only show the 00 and 50 levels.

    Thanks

    Reply
  7. ism45

    Hello,

    First I would like to thank you for this amazing website, I really do like your Cowabunga System, I was reading a book on Forex and looking at many websites, I just would like to say the net is full of Carp!! but your system looks promising.

    I am new to Forex, and I went over your school and finished it, I wanna do this right, I am using a demo account right now to test the system, I lost many times, and I won others, but I can account for all the losses as “Invalid entries”. I could’ve made big money today on the Euro fall using your system, but I failed to put the limits correctly.

    I am looking to demo my account for couple of months according to your advice :)

    I am trading different currencies using the system, not only US/GBP, and they looks fine, actually all of my losses so far are on the US/GBP??

    My problem, is I am trading from the mountains time zone, and I am working full time, so my problem is with timing?

    Thanks so much, and please keep updating us, even when you go away

    Reply
  8. ism45

    Hello,

    First I would like to thank you for this amazing website, I really do like your Cowabunga System, I was reading a book on Forex and looking at many websites, I just would like to say the net is full of Carp!! but your system looks promising.

    I am new to Forex, and I went over your school and finished it, I wanna do this right, I am using a demo account right now to test the system, I lost many times, and I won others, but I can account for all the losses as “Invalid entries”. I could’ve made big money today on the Euro fall using your system, but I failed to put the limits correctly.

    I am looking to demo my account for couple of months according to your advice :)

    I am trading different currencies using the system, not only US/GBP, and they looks fine, actually all of my losses so far are on the US/GBP??

    My problem, is I am trading from the mountains time zone, and I am working full time, so my problem is with timing?

    Thanks so much, and please keep updating us, even when you go away

    Reply

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