Cowabunga System Daily Update: Wednesday, 06/09/2010

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

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

News events to watch for today :

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

Today’s Surf

12:15am EST- There was a moving average crossover for a short trade. RSI was less than 50, stochastics were trending down but MACD was already negative from the previous candle. This cancelled the signal and I did not enter.

entry2

Trade Result: +0 Pips R-Multiple: N/A

News events to watch for Thursday:

  • 7:00am EST- UK BoE MPC interest rate announcement
  • 8:30am EST- US Trade Balance

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.

16 comments

  1. AKINCI

    Hello,

    I am a newbie and have finished school of pipsology. Your system looked to me very good for a beginner and who has small amount of budget.
    Your system brings (at worst) averagely 20 pips a day, 5200 pips a year. That is huge if you enter with high amount of lots. I do not know what kind of life you are living, but there is a certain thing that I would prefer a charming island with my cold lemonade in my hand. And we know that the place we live does not bother, all you need a computer. I am sorry for my doubt, but I have to ask: Do you really make that much amount of money?

    And I have one more question: When you are in a long position, do you close it when 5ema passed down 10ema in the 15min chart.

    Thank you for all your support.

    Reply
  2. nu_bee

    Hi pip surfer,

    I went through your FAQs and I found out you trade from the Eastern time zone. Please do you mind telling me your time zone with respect to GMT? I need it to clear a few points I got from your video.

    I trade from GMT +1

    Reply
  3. AKINCI

    Hello,

    I am a newbie and have finished school of pipsology. Your system looked to me very good for a beginner and who has small amount of budget.
    Your system brings (at worst) averagely 20 pips a day, 5200 pips a year. That is huge if you enter with high amount of lots. I do not know what kind of life you are living, but there is a certain thing that I would prefer a charming island with my cold lemonade in my hand. And we know that the place we live does not bother, all you need a computer. I am sorry for my doubt, but I have to ask: Do you really make that much amount of money?

    And I have one more question: When you are in a long position, do you close it when 5ema passed down 10ema in the 15min chart.

    Thank you for all your support.

    Reply
  4. nu_bee

    Hi pip surfer,

    I went through your FAQs and I found out you trade from the Eastern time zone. Please do you mind telling me your time zone with respect to GMT? I need it to clear a few points I got from your video.

    I trade from GMT +1

    Reply
  5. ism45

    Hello,

    Thanks again,

    I am testing the system on the Eur/USD and it is actually working better than the GBP/USD, it looks like my luck lies in the Euro :)

    Anyhow, one question, I am having difficulty understanding your rational in determining the “Trend Change Candle” in the 4H chart? Could you give us more details next video? by providing more examples on how to determine the trend? cuz so far, all my losses are on determining the trend? Do you consider 2 bearish candles in the last 8 hours as a down trend for instance?

    Reply
  6. cre8

    Hi Pipsurfer, i’v been following your system for about 3 months now (only between 12am and 5am your time), i appreciate your time and effert for this blog and system. I have questions related to stop vs profit i’v back tested the last 3 months (all i can do with my trading platform) and found in most cases the full stop is not required (trade either wins or loses) only 2 trades stoped me out with my half stop that would have been profitable for you in the last 2 months trading live , do you think it is sustainable or do you think i should stick to the swing high and low and for what reasons (just dont like risking 50 pips to get 25 pips profit) just an eg
    i know we can change our position size so not to have to much at risk but that also screws up profit to lose ratio because of R.O.R as far as i know , any help would be much apreciated.
    thanx dude!!!

    Reply
  7. ism45

    Hello,

    Thanks again,

    I am testing the system on the Eur/USD and it is actually working better than the GBP/USD, it looks like my luck lies in the Euro :)

    Anyhow, one question, I am having difficulty understanding your rational in determining the “Trend Change Candle” in the 4H chart? Could you give us more details next video? by providing more examples on how to determine the trend? cuz so far, all my losses are on determining the trend? Do you consider 2 bearish candles in the last 8 hours as a down trend for instance?

    Reply
  8. cre8

    Hi Pipsurfer, i’v been following your system for about 3 months now (only between 12am and 5am your time), i appreciate your time and effert for this blog and system. I have questions related to stop vs profit i’v back tested the last 3 months (all i can do with my trading platform) and found in most cases the full stop is not required (trade either wins or loses) only 2 trades stoped me out with my half stop that would have been profitable for you in the last 2 months trading live , do you think it is sustainable or do you think i should stick to the swing high and low and for what reasons (just dont like risking 50 pips to get 25 pips profit) just an eg
    i know we can change our position size so not to have to much at risk but that also screws up profit to lose ratio because of R.O.R as far as i know , any help would be much apreciated.
    thanx dude!!!

    Reply
  9. PIPhanger

    PipSurfer, I am using MT4 which has the prices with 5 decimal places instead of 4 which xTick has. Do i look for the nearest level 1.XXX50 or 1.XX500 for the 50 mark and 1.XXX00 or 1.XX000 for the 00 mark. After looking at the charts for awhile the nearest 00 or 50 mark seems like a big amount of pips to catch. Do you have a rule if it doesn’t hit your mark and retraces to take some of the profit. Also do you have a rule if it’s right above one of the levels to shorten your profit line a little below the next level since 50 pips seems like a lot to try and catch or is 50 pips pretty reasonable with this setup.

    Thanks,

    Reply
  10. PIPhanger

    PipSurfer, I am using MT4 which has the prices with 5 decimal places instead of 4 which xTick has. Do i look for the nearest level 1.XXX50 or 1.XX500 for the 50 mark and 1.XXX00 or 1.XX000 for the 00 mark. After looking at the charts for awhile the nearest 00 or 50 mark seems like a big amount of pips to catch. Do you have a rule if it doesn’t hit your mark and retraces to take some of the profit. Also do you have a rule if it’s right above one of the levels to shorten your profit line a little below the next level since 50 pips seems like a lot to try and catch or is 50 pips pretty reasonable with this setup.

    Thanks,

    Reply
  11. advancedforex

    Hi the post seems to be informative but frankly i am finding it a bit difficult to understand the 4H chart! can i have description about it simply explained.

    Reply
  12. advancedforex

    Hi the post seems to be informative but frankly i am finding it a bit difficult to understand the 4H chart! can i have description about it simply explained.

    Reply
  13. madpipa

    Hey PipSurfer,

    Thanks for introducing another newbie to Forex with a simple but profitable system. I am just starting to demo-trade Cowabunga sticking strictly to your rules. I am also demo-trading some other currencies, but keeping separate records for comparison.

    Cheers also to BigPippin for starting the Cowabunga system & thread.

    Reply
  14. madpipa

    Hey PipSurfer,

    Thanks for introducing another newbie to Forex with a simple but profitable system. I am just starting to demo-trade Cowabunga sticking strictly to your rules. I am also demo-trading some other currencies, but keeping separate records for comparison.

    Cheers also to BigPippin for starting the Cowabunga system & thread.

    Reply

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