Cowabunga System Daily Update: Tuesday, 08/31/2010

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

1:00am 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 1.5455 with a stop at the most recent swing high at 1.5465. Since I was only 5 pips away from the nearest 50 or 00 level (1.5450), I decided to go for the same amount of pips I was risking on the trade, which in this case was only 10. Since both the nearest 50 or 00 level and my stop only generated a potential profit target of less than 10 pips, I decided to set my initial target at the next 50 or 00 level, which in this case was 1.5400.

Entry: Short at 1.5455 Stop: 1.5465 Target: 1.5400

3:00am EST- My target was hit. Price didn’t make a clean break so I took my final profit. I exited at 1.5402.

5:00am 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 1.5412 with a stop at the most recent swing high at 1.5451. Since I was only 12 pips away from the nearest 50 or 00 level (1.5400), I decided to go for the same amount of pips I was risking on the trade, which in this case was 39. This put my target at 1.5373.

Entry: Short at 1.5412 Stop: 1.5451 Target: 1.5373

7:30am EST- My target was hit. Price made a clean break so I moved my stop to 1.5373 and set my next target for 1.5350.

7:45am EST- Unfortunately I got stopped out at my initial target at 1.5373.

10:45am 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 1.5369 with a stop at the most recent swing high at 1.5412. Since I was 19 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.5350.

Entry: Short at 1.5369 Stop: 1.5412 Target: 1.5350

11:00am EST- My target was hit. Price made a clean break so I moved my stop to 1.5350 and set my next target for 1.5300.

11:15am EST- Unfortunately I got stopped out at my initial target at 1.5350.

entry2

Trade Result: +53 +39 +19= +111 Pips (NOT INCLUDING SPREAD) R-Multiple: 5.30; 1.00; 0.44

News events to watch for Wednesday:

For a complete list of news events check out our Forex Economic Calendar.
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  • LarryLivingston

    Wow. Well done amigo. You snatch many many pips with your MA,RSI,MACD and 00’s tactic! Bravo!!! Nice waves dude.

  • LarryLivingston

    Wow. Well done amigo. You snatch many many pips with your MA,RSI,MACD and 00’s tactic! Bravo!!! Nice waves dude.