Cowabunga System Daily Update: Tuesday, 08/03/2010

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 was up the entire day.

Today I only looked for long trades.

News events to watch for today :

Today’s Surf

1:00am 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 1.5880 with a stop at the most recent swing low at 1.5861. Since I was 20 pips away from the nearest 50 or 00 level, I decided to put my intial target at 1.5900.

Entry: Long at 1.5880 Stop: 1.5861 Target: 1.5900

2:30am EST- My target was hit. Price made a clean break so I moved my stop to 1.5900 and set my next target for 1.5950.

3:00am EST- Unfortunately I got stopped out at 1.5900.

8:30am EST- There was a valid signal here but because it was a news candle I did not enter.

10:45am 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 1.5955 with a stop at the most recent swing low at 1.5889. Since I was 45 pips away from the nearest 50 or 00 level, I decided to put my intial target at 1.6000.

Entry: Long at 1.5955 Stop: 1.5889 Target: 1.6000

12:00pm EST- Unfortunately my trade wasn’t hit by this time. Since market volatility usually drops at this point, I went ahead and cut my losses by exiting my trade. I exited at 1.5939.

entry2

Trade Result: +20 -16= +4 Pips (NOT INCLUDING SPREAD) R-Multiple: 1.05; -0.24

News events to watch for Wednesday:

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.

  • Mercia

    Hey i was wondering: Do you trade after a news piece (If you get a signal) has been released or do you wait 30mins after? If you could answer this in your youtube vid that would be great!

  • Mercia

    Hey i was wondering: Do you trade after a news piece (If you get a signal) has been released or do you wait 30mins after? If you could answer this in your youtube vid that would be great!

  • mraugustyn

    Ps,

    Great to have you back. Just a quick question. I trade the system to a T and it has been working wonderfully. However July was poor month. I spoke with some members on the forums and the consensus was that this could be attributed to the cable trading around 1.50 which is a psychological level and what have you. Does this sound like a plausible reason for the down month? I’m just trying to understand the slower months for Cowabunga and keep my spirits up.. Thank you.

    mraugustyn

  • mraugustyn

    Ps,

    Great to have you back. Just a quick question. I trade the system to a T and it has been working wonderfully. However July was poor month. I spoke with some members on the forums and the consensus was that this could be attributed to the cable trading around 1.50 which is a psychological level and what have you. Does this sound like a plausible reason for the down month? I’m just trying to understand the slower months for Cowabunga and keep my spirits up.. Thank you.

    mraugustyn