Cowabunga System Daily Update: Wednesday, 06/16/2010

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 up the entire day.

Today I only looked for long trades.

News events to watch for today :

  • 4:30am EST- UK Claimant Count
  • 8:30am EST- US PPI
  • 9:15am EST- US Industrial production

Today’s Surf

5:30am 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 1.4812 with a stop at the most recent swing low at 1.4751. Since I was 38 pips away from the nearest 50 or 00 level, I decided to put my intial target at 1.4850.

Entry: Long at 1.4812 Stop: 1.4751 Target: 1.4850

8:15am EST- My target wasn’t hit by this time. Since news was coming out at 8:30am EST, I went ahead and closed out my trade at 1.4777.

9:30am 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 1.4808 with a stop at the most recent swing low at 1.4751. Since I was 42 pips away from the nearest 50 or 00 level, I decided to put my intial target at 1.4850.

Entry: Long at 1.4808 Stop: 1.4751 Target: 1.4850

11:30am EST- My target was hit. Price made a clean break so I moved my stop to 1.4850 and set my next target at 1.4900.

11:45am EST- Unfortunately I got stopped out at my initial target at 1.4850.

entry2

Trade Result: -35 +42= +7 Pips (NOT INCLUDING SPREAD) R-Multiple: -0.57; 0.73

News events to watch for Thursday:

  • 4:30am EST- UK Retail Sales 
  • 8:30am EST- US CPI
  • 10:00am EST- US Philadelphia Fed Survey

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. Lady

    If this is the wrong forum to post, I apologize up front. Where can I purchase the pdf version of the School Of Pipsology? Please provide a link. Thank you.

    Reply
  2. Lady

    If this is the wrong forum to post, I apologize up front. Where can I purchase the pdf version of the School Of Pipsology? Please provide a link. Thank you.

    Reply
  3. cre8

    Hi Pipsurfer regarding my question on 09/06/10 which you answered on 15/06/10 about halving stops and risk vs reward, i did alot of back testing on this and came up with some great results. As you have said in previous posts, the system is just a guide line and to do our testing, but when you answered my question you said i should just stick to the system and trade the swing high and low. As i respect your opinion i am now very confused because i have been trading for a number of years (not forex) myself and am of the opinion that your profit should always outweigh your loss. please shed some light. thanx

    Reply
  4. cre8

    Hi Pipsurfer regarding my question on 09/06/10 which you answered on 15/06/10 about halving stops and risk vs reward, i did alot of back testing on this and came up with some great results. As you have said in previous posts, the system is just a guide line and to do our testing, but when you answered my question you said i should just stick to the system and trade the swing high and low. As i respect your opinion i am now very confused because i have been trading for a number of years (not forex) myself and am of the opinion that your profit should always outweigh your loss. please shed some light. thanx

    Reply
  5. TheForexSurfer

    Hi Cowabunga;

    I jsut joined Babypips using you as a referral.

    The School us awesome. I am loving surfing the Forex Waves. 17 out of 18 trades at profit.

    Is there an affiliate system tied up in the babypips membership. If so, is it explained anywhere?

    I noticed that there are a few other pips sites as well. Are these all tied up and how are they a benefit?

    If there is an explanation of the whole babypips system, just refer me to it and I will leave you to surf.

    What platform do you surf? I am on E-Toro.

    Cheers, The Forex Surfer.

    Reply
  6. TheForexSurfer

    Hi Cowabunga;

    I jsut joined Babypips using you as a referral.

    The School us awesome. I am loving surfing the Forex Waves. 17 out of 18 trades at profit.

    Is there an affiliate system tied up in the babypips membership. If so, is it explained anywhere?

    I noticed that there are a few other pips sites as well. Are these all tied up and how are they a benefit?

    If there is an explanation of the whole babypips system, just refer me to it and I will leave you to surf.

    What platform do you surf? I am on E-Toro.

    Cheers, The Forex Surfer.

    Reply

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