Cowabunga System Daily Update: Wednesday, 06/23/10

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 was up the entire day.

Today I only looked for long trades.

News events to watch for today :

  • 4:30am EST- UK BoE release minutes of prior 
  • 10:00am EST- US New Home Sales

Today’s Surf

2:15am 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 1.4833 with a stop at the most recent swing high at 1.4813. Since I was 17 pips away from the nearest 50 or 00 level, I decided to put my intial target at 1.4850.

Entry: Long at 1.4833 Stop: 1.4813 Target: 1.4850

3:00am EST- My target was hit. Price initially made a clean break but ended up closing at 1.4851. I went ahead and took my final profit.

entry2

Trade Result: +18 pips (NOT INCLUDING SPREAD) R-Multiple: 0.90

News events to watch for Thursday:

  • 8:30am EST- US Durable goods orders

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.

20 comments

  1. pakisch

    Stochastics wasn’t clear I didn’t get the signal using the “Cowabunga – Any PairV2″ for MT4. At some point during the quarter I saw the arrow (buy signal) but at the close of the candle there was no arrow. Other than that I like your system very much.

    Reply
  2. jbarker

    On my demo account, I got the same signal you referenced today and netted 15 pips. I also got another signal at 12:15PM EDT and got out before the 2:15PM Fed Announcement for an additional 16 pips. I was curious to know why I got a second signal and you did not. In the rules it says to exit all trades prior to 4:00PM Eastern, so I assume it’s ok to take trades up to a point close to that? I also see that you didn’t reference the 2:15 Fed announcement, is that not an event you would regularly observe? Thanks for sharing this system with everybody.

    Reply
  3. pakisch

    Stochastics wasn’t clear I didn’t get the signal using the “Cowabunga – Any PairV2″ for MT4. At some point during the quarter I saw the arrow (buy signal) but at the close of the candle there was no arrow. Other than that I like your system very much.

    Reply
  4. pg2007

    A question about the 4 Hr crossover. If there is a 4hr cross, but one of the other signals, the stochs or RSI aren’t right, do you look for them to get to the right values on subsequent candles? For example suppose the 4 hr Ema crosses at 8:00 to an up trend but the RSI is at 45, do you look at the 12:00 and 16:00 candles for the RSI to get above 50?

    Reply
  5. jbarker

    On my demo account, I got the same signal you referenced today and netted 15 pips. I also got another signal at 12:15PM EDT and got out before the 2:15PM Fed Announcement for an additional 16 pips. I was curious to know why I got a second signal and you did not. In the rules it says to exit all trades prior to 4:00PM Eastern, so I assume it’s ok to take trades up to a point close to that? I also see that you didn’t reference the 2:15 Fed announcement, is that not an event you would regularly observe? Thanks for sharing this system with everybody.

    Reply
  6. pg2007

    A question about the 4 Hr crossover. If there is a 4hr cross, but one of the other signals, the stochs or RSI aren’t right, do you look for them to get to the right values on subsequent candles? For example suppose the 4 hr Ema crosses at 8:00 to an up trend but the RSI is at 45, do you look at the 12:00 and 16:00 candles for the RSI to get above 50?

    Reply
  7. jbarker

    pg2007: From my judgement, at the point of crossover, I do take the rsi and stochastics into account, but subsequent candles the only consideration I take into account is where the 5 ema is in respect to the 10 ema (ie. 5 is higher, trend is up). This is how I interpret all the information that I have seen regarding this system so far.

    Reply
  8. jbarker

    pg2007: From my judgement, at the point of crossover, I do take the rsi and stochastics into account, but subsequent candles the only consideration I take into account is where the 5 ema is in respect to the 10 ema (ie. 5 is higher, trend is up). This is how I interpret all the information that I have seen regarding this system so far.

    Reply
  9. Jabba1

    Whats up pipsurfer,

    If you went aheaded and traded the news and disregarded the cowabungag system rule about the news how much do you think it would drop your win percentage?

    Also, watching your blogs I’ve noticed you somtime take discrecitonary exits in the early morning hours. Do you just stay up and watch the charts or does xtick have a feature where it will exit you at a certain time, etc. Thanks!

    Reply
  10. Jabba1

    Whats up pipsurfer,

    If you went aheaded and traded the news and disregarded the cowabungag system rule about the news how much do you think it would drop your win percentage?

    Also, watching your blogs I’ve noticed you somtime take discrecitonary exits in the early morning hours. Do you just stay up and watch the charts or does xtick have a feature where it will exit you at a certain time, etc. Thanks!

    Reply
  11. TopofthePips

    Hi pipsurfer,

    First off, as a newbie I’d like to extend my gratitude for all the work you have put into making trading easier for people like me!

    So now to my question (and forgive me if you have addressed this already). Should the 5 and 10 moving averages be set at ‘simple’ or exponential? There is a noticeable difference between the two when it comes to crossovers on the 15 minute chart and I’m not sure which one to trust?

    Many thanks!

    Reply
  12. TopofthePips

    Hi pipsurfer,

    First off, as a newbie I’d like to extend my gratitude for all the work you have put into making trading easier for people like me!

    So now to my question (and forgive me if you have addressed this already). Should the 5 and 10 moving averages be set at ‘simple’ or exponential? There is a noticeable difference between the two when it comes to crossovers on the 15 minute chart and I’m not sure which one to trust?

    Many thanks!

    Reply
  13. jbarker

    TopofthePips: As I understand and use myself, they are exponential or as I say EMA (Exponential Moving Average).

    Reply
  14. jbarker

    TopofthePips: As I understand and use myself, they are exponential or as I say EMA (Exponential Moving Average).

    Reply
  15. ohioer

    How do you go for 17 pips while your stop loss is set for 20 pips !?.
    you are even below the 1:1 risk to reward ratio. I will be really surprised if you have been profitable with this system on the long run with all these years as I can see in the archive.

    Reply
  16. ohioer

    How do you go for 17 pips while your stop loss is set for 20 pips !?.
    you are even below the 1:1 risk to reward ratio. I will be really surprised if you have been profitable with this system on the long run with all these years as I can see in the archive.

    Reply
  17. Egwig

    Does this service still function? June 23 seems along way back. Is that the latest ‘update’?
    Egwig

    Reply
  18. Egwig

    Does this service still function? June 23 seems along way back. Is that the latest ‘update’?
    Egwig

    Reply

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