Cowabunga System Daily Update: Wednesday, 08/11/2010

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 down the entire day.

Today I only looked for short trades.

News events to watch for today :

Today’s Surf

1:45am EST- There was a moving average crossover for a short trade. RSI was less than 50, stochastics were trending down and MACD was positive and losing value. This was a valid entry.

The entry was at the close of the candle at 1.5799 with a stop at the most recent swing high at 1.5823. Since I was 49 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.5750.

Entry: Short at 1.5799 Stop: 1.5823 Target: 1.5750

4:15am EST- My target wasn’t hit by this time. Since news was coming out at 4:30am EST, I went ahead and manually exited my trade at 1.5779.

8:30am EST- No entry because it was a news candle.

entry2

Trade Result: +20 Pips (NOT INCLUDING SPREAD) R-Multiple: 0.83

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.

  • ramizq

    Hello what you talk about trend change candle what software are you using as it shows that candle in purple. Please let me know. Also do you have a daily update for EUR/USD also?

  • ramizq

    I meant when* you relay information about trend change. I would also like to know what platform your using so I can identify the change as well.

    Thanks

  • fed

    guys there is no such candel indicated the trend. He looks at the crossover of the 2 MAs I believe 5 and 10 SMAs. When it crosses on the 4HR that is how is determines the trend. He just showed the candel after the cross of the MA cross happend if you notice. Read his Covabanga FAQ it will explain how he does it.

  • pipstar41

    Hi Pip Surfer!

    Thanks a ton for updating your blog so often in the last days! The videos are also really helpful, good job man!

    I am completely new to forex and just getting used to everything. So when I watched todays video, one question came into my mind: when you were short the first time you quit your trade right before the news candle, although you had not reached your target yet (as the rules of the system suggest). Wouldn´t it make sense to stay invested and just set a very tight SL at this point? So you could still reach your target when the news turn out to be not that exciting and in case the newscandle goes into the wrong direction you still got out with a profit?

    Again, thanks a lot for all this, keep up the good work!

  • ramizq

    Hello what you talk about trend change candle what software are you using as it shows that candle in purple. Please let me know. Also do you have a daily update for EUR/USD also?

  • ramizq

    I meant when* you relay information about trend change. I would also like to know what platform your using so I can identify the change as well.

    Thanks

  • fed

    guys there is no such candel indicated the trend. He looks at the crossover of the 2 MAs I believe 5 and 10 SMAs. When it crosses on the 4HR that is how is determines the trend. He just showed the candel after the cross of the MA cross happend if you notice. Read his Covabanga FAQ it will explain how he does it.

  • pipstar41

    Hi Pip Surfer!

    Thanks a ton for updating your blog so often in the last days! The videos are also really helpful, good job man!

    I am completely new to forex and just getting used to everything. So when I watched todays video, one question came into my mind: when you were short the first time you quit your trade right before the news candle, although you had not reached your target yet (as the rules of the system suggest). Wouldn´t it make sense to stay invested and just set a very tight SL at this point? So you could still reach your target when the news turn out to be not that exciting and in case the newscandle goes into the wrong direction you still got out with a profit?

    Again, thanks a lot for all this, keep up the good work!

  • PipSurfer

    @ramizq- Fed is right. The color of the candle is just highlighted to show the crossover between the moving averages. The FAQ will answer all your questions. But for your reference, I am using Xtick.

    @pipstar- You could do that. It’s all a matter of trading styles. For me, I’d rather cut my losses or grab my profits before a news event. Some like to risk a little more. The important thing I want people to remember is that news candles can be very volatile and should be approached with caution when trading during those times.

  • PipSurfer

    @ramizq- Fed is right. The color of the candle is just highlighted to show the crossover between the moving averages. The FAQ will answer all your questions. But for your reference, I am using Xtick.

    @pipstar- You could do that. It’s all a matter of trading styles. For me, I’d rather cut my losses or grab my profits before a news event. Some like to risk a little more. The important thing I want people to remember is that news candles can be very volatile and should be approached with caution when trading during those times.