Cowabunga System Daily Update: Wednesday, 08/04/2010

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

2:30am 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 1.5938 with a stop at the most recent swing low at 1.5915. Since I was only 12 pips away from the nearest 50 or 00 level (1.5950), I decided to go for the same amount of pips I was risking on the trade, which in this case was 23. This put my initial target at 1.5961.

Entry: Long at 1.5938 Stop: 1.5915 Target: 1.5961

2:45am EST- My target was hit. Price didn’t make a clean break so I took my final profit. I exited at 1.5958.

6:15am 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 1.5936 with a stop at the most recent swing low at 1.5890. Since I was 14 pips away from the nearest 50 or 00 level, I decided to put my intial target at 1.5950.

Entry: Long at 1.5936 Stop: 1.5890 Target: 1.5950

7:45am EST- My target was hit. Price didn’t make a clean break so I took my final profit. I exited at 1.5951.

entry2

Trade Result: +20 +15= +35 Pips (NOT INCLUDING SPREAD) R-Multiple: 0.87; 0.32

News events to watch for Thursday:

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.

12 comments

  1. daxter22

    Pipsurfer – I noticed in meetpips you are testing out a longer-term version of cowabunga on 4 hour charts. How is that progressing?

    Reply
  2. shortpipin

    PIP SURFER WHY DO YOU SET YOUR PROFIT TARGETS AT THE 00 AND 50 LEVELS? IS IT BECAUSE THESE NUMBERS ARE REFERED TO AS PSYCHOLOGICAL LEVEL? WHAT ARE PSYCHOLOGICAL LEVEL? WHERE CAN I READ UP ON PSYCHOLOGICAL LEVELS USED TRADING FOREX?

    THX

    Reply
  3. daxter22

    Pipsurfer – I noticed in meetpips you are testing out a longer-term version of cowabunga on 4 hour charts. How is that progressing?

    Reply
  4. shortpipin

    PIP SURFER WHY DO YOU SET YOUR PROFIT TARGETS AT THE 00 AND 50 LEVELS? IS IT BECAUSE THESE NUMBERS ARE REFERED TO AS PSYCHOLOGICAL LEVEL? WHAT ARE PSYCHOLOGICAL LEVEL? WHERE CAN I READ UP ON PSYCHOLOGICAL LEVELS USED TRADING FOREX?

    THX

    Reply
  5. cre8

    Hey Pipsurfer nice to have you back, could you go in to detail of why you took the buy signal yesterday at 1:00am EST when the stochastic was in overbourt territory i didnt take the signal because of this thanks.

    Reply
  6. cre8

    Hey Pipsurfer me again could you also explain when we have a EMA crossover (trend change) on the 4hr chart to the down side but RSI and stochastic are in confict meening RSI not below 50 and stochastic crossing up is that still a valid trend change ? and if not do we continue to take buy signals ? this senario is on my chart today not sure if yours the same just going to stay out of the market thanks

    Reply
  7. cre8

    Hey Pipsurfer nice to have you back, could you go in to detail of why you took the buy signal yesterday at 1:00am EST when the stochastic was in overbourt territory i didnt take the signal because of this thanks.

    Reply
  8. cre8

    Hey Pipsurfer me again could you also explain when we have a EMA crossover (trend change) on the 4hr chart to the down side but RSI and stochastic are in confict meening RSI not below 50 and stochastic crossing up is that still a valid trend change ? and if not do we continue to take buy signals ? this senario is on my chart today not sure if yours the same just going to stay out of the market thanks

    Reply
  9. Cowaman

    Following you in silence trade after trade after trade.
    DON’T STOP THIS AWESOME WORK.
    If you need help posting or whatever just ask.

    You’ve tons followers around the world.

    Thank you for everything.

    Reply
  10. Cowaman

    Following you in silence trade after trade after trade.
    DON’T STOP THIS AWESOME WORK.
    If you need help posting or whatever just ask.

    You’ve tons followers around the world.

    Thank you for everything.

    Reply

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