Cowabunga System Daily Update: Thursday, 08/12/2010

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

2:45am EST- There was a moving average crossover for a short trade. RSI was less than 50, stochastics were trending down and MACD went from positive to negative. This was a valid entry.

The entry was at the close of the candle at 1.5662 with a stop at the most recent swing high at 1.5712. Since I was only 12 pips away from the nearest 50 or 00 level (1.5650), I decided to go for the same amount of pips I was risking on the trade, which in this case was 50 pips. This put my initial target at 1.5612.

Entry: Short at 1.5662 Stop: 1.5712 Target: 1.5612

5:45am EST- My target was hit. Price made a clean break so I moved my stop to 1.5612 and set my next target for 1.5600. During this same candle, my 2nd target at 1.5600 was hit. Again, price made a clean break so I moved my stop to 1.5600 and set my next target for 1.5550.

6:00am EST- Unfortunately I got stopped out at 1.5600.

entry2

Trade Result: +62 Pips (NOT INCLUDING SPREAD) R-Multiple: 1.24

News events to watch for Friday:

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.

  • bajaben

    Hi Pipsurfer–thanks for all your help. One question–in your rules it says be out of the market by 4PM EST, but in all your videos it looks like you are out by 12 noon EST. Which is it? Also if we are in a trade and run up to these times should we exit?…..thanks!

  • bajaben

    Hi Pipsurfer–thanks for all your help. One question–in your rules it says be out of the market by 4PM EST, but in all your videos it looks like you are out by 12 noon EST. Which is it? Also if we are in a trade and run up to these times should we exit?…..thanks!

  • PHTrader

    Hello Pipsurfer. Do you take all trades based on a percentage risk on your your trading capital – that will be calculated from size of your stop loss in pips, or do you have a fixed tradeposition each time?

  • PHTrader

    Hello Pipsurfer. Do you take all trades based on a percentage risk on your your trading capital – that will be calculated from size of your stop loss in pips, or do you have a fixed tradeposition each time?

  • PHTrader

    Hello Pipsurfer. I have followed you for some time with great interest and I see that you pull good consistent results. One question, sort of connected to the one above. If I am not wrong my impression is that very many of the trade setups, unless you are very close to a 50 or 00 level and decide to go for same as stop-loss risk, you have a negative Risk to Reward. E.g you have 45 pips risk and go for 30 pips. Will you not need a very substantial high degree of winners to be profitable ?(Especially if you do a percentage exposure based on trading account)

  • PHTrader

    Hello Pipsurfer. I have followed you for some time with great interest and I see that you pull good consistent results. One question, sort of connected to the one above. If I am not wrong my impression is that very many of the trade setups, unless you are very close to a 50 or 00 level and decide to go for same as stop-loss risk, you have a negative Risk to Reward. E.g you have 45 pips risk and go for 30 pips. Will you not need a very substantial high degree of winners to be profitable ?(Especially if you do a percentage exposure based on trading account)

  • prosper88

    Hi Pipsurfer, great work today.. Looking forward to your responses to the risk management questions above!!

  • prosper88

    Hi Pipsurfer, great work today.. Looking forward to your responses to the risk management questions above!!

  • plcdoc

    Risk management is by far the most important element in long term success. However, having a good system (cowabunga) certainly helps.

  • plcdoc

    Risk management is by far the most important element in long term success. However, having a good system (cowabunga) certainly helps.