Cowabunga System Daily Update: Monday, 08/30/2010

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

2:15am 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 1.5541 with a stop at the most recent swing low at 1.5508. Since I was only 9 pips away from the nearest 50 or 00 level (1.5550), I decided to go for the same amount of pips I was risking on the trade, which in this case was 33. This put my initial target at 1.5574.

Entry: Long at 1.5541 Stop: 1.5508 Target: 1.5574

4:00am EST- My target was hit. Price didn’t make a clean break so I took my final profit. I exited at 1.5570.

entry2

Trade Result: +29 Pips (NOT INCLUDING SPREAD) R-Multiple: 0.87

News events to watch for Tuesday:

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.

  • MarkFx

    Congrats on the gain but since today was a UK bank holiday, shouldn’t we have stayed out?

  • MarkFx

    Congrats on the gain but since today was a UK bank holiday, shouldn’t we have stayed out?

  • PHTrader

    Hello Pipsurfer. Congrats with todays winner:-) I have followed you for some time with great interest and I see that you pull good consistent results. I have a question regarding risk managment. 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. Congrats with todays winner:-) I have followed you for some time with great interest and I see that you pull good consistent results. I have a question regarding risk managment. 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)

  • PipSurfer

    @markfx- Good observation! Often times bank holidays are days to avoid trading, but usually its only the major holidays that are significant enough to justify not trading. Great question and I hope that helps!

    @PHTrader- You are absolutely correct. In order for a system to be successful over the long run with a negative R multiple, it must have a high win percentage. The Cowabunga system makes up for the negative R multiple by winning almost 70% of the time. That is why it is still profitable over the long stretch. Hope that helps. You can go to http://www.meetpips.com and look up my name to see the complete stats.

  • PipSurfer

    @markfx- Good observation! Often times bank holidays are days to avoid trading, but usually its only the major holidays that are significant enough to justify not trading. Great question and I hope that helps!

    @PHTrader- You are absolutely correct. In order for a system to be successful over the long run with a negative R multiple, it must have a high win percentage. The Cowabunga system makes up for the negative R multiple by winning almost 70% of the time. That is why it is still profitable over the long stretch. Hope that helps. You can go to http://www.meetpips.com and look up my name to see the complete stats.