Cowabunga System Daily Update: Thursday, 09/02/2010

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 until 4am EST. From 4am – 8am EST, a new trend change candle formed and changed the trend from up to DOWN. AFter 8am EST, the trend remained down the rest of the day.

Today I only looked for long trades until 4am EST. After 4am EST I only looked for short trades.

News events to watch for today :

Today’s Surf

12:15am 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 1.5443 with a stop at the most recent swing low at 1.5428. Since I was only 7 pips away from the nearest 50 or 00 level (1.5450), I decided to go for the same amount of pips on the trade, which in this case was 15. This put my initial target at 1.5458.

Entry: Long at 1.5443 Stop: 1.5428 Target: 1.5558

1:30am EST- Unfortunately I was stopped out of my trade. (-15 pips)

6:30am 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 1.5394 with a stop at the most recent swing high at 1.5406. Since I was 44 pips away from the nearest 50 or 00 level I decided to put my initial target at 1.5350.

Entry: Short at 1.5394 Stop: 1.5406 Target: 1.5350

7:00am EST- Unfortunately I was stopped out of my trade. (-12 pips)

7:45am EST- There was a valid signal here but because it was right before the 8:30am EST news I did not enter.

entry2

Trade Result: -15 -12= -27 Pips R-Multiple: -1.00; -1.00

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.

  • JoePipster

    Dude,
    Thanks for your daily video updates. I look forward to them everyday. I’m proceeding through the learning process and your videos have given me knowledge and confidence. Thank you.

    JoePipster

  • mraugustyn

    PS,

    I second Joe’s appreciation. Myself and a variety of other folks follow your blog on the daily. Please keep it up and know it’s very appreciated. When I make my millions off it I’ll cut ya in :)

  • JoePipster

    Dude,
    Thanks for your daily video updates. I look forward to them everyday. I’m proceeding through the learning process and your videos have given me knowledge and confidence. Thank you.

    JoePipster

  • mraugustyn

    PS,

    I second Joe’s appreciation. Myself and a variety of other folks follow your blog on the daily. Please keep it up and know it’s very appreciated. When I make my millions off it I’ll cut ya in :)

  • aaapm2000

    Dude

    I too want to thank you for your efforts and faithfullness to show us your hand. It is helping me a lot.

    I have a question though regarding the “news. rather than stepping out as the news approaches, would it be valid to stayon but to move your stops in close to safeguard your profit but it gives you the option of catching a significant move in your direction. the worst that could happen is it stops out against you if the news moves oposite the general trend.

    Cheers
    Aussie Dude

  • aaapm2000

    Dude

    I too want to thank you for your efforts and faithfullness to show us your hand. It is helping me a lot.

    I have a question though regarding the “news. rather than stepping out as the news approaches, would it be valid to stayon but to move your stops in close to safeguard your profit but it gives you the option of catching a significant move in your direction. the worst that could happen is it stops out against you if the news moves oposite the general trend.

    Cheers
    Aussie Dude